The N2 Gateway housing project could take a heavy toll on city resources, since it has not been provided for in the budget, Cape Town mayor Dan Plato has warned.
Human settlements minister Tokyo Sexwale was to brief Parliament's portfolio committee on human settlements today on the way forward for the controversial housing project.
Sexwale was expected to announce decisions made regarding the handling of problems identified with the project, but Plato said yesterday the potential impact of the project on city resources was "wide and far-reaching".
If implemented, he warned, it would constrain projects to which the city had already committed itself for the next five years.
While all three spheres of government originally managed the project, the city was booted out when the DA took over the City of Cape Town from the ANC in March 2006, and subsequently voiced concern about the way it was being handled.
Currently, the national and provincial departments of housing manage the project jointly with the Housing Development Agency, and the city has observer status only on the project steering committee.
The city also chairs the allocations committee, which monitors adherence to the land-availability agreement regarding the allocation of dwellings, and is represented on the technical team dealing with operational matters.
The city is, however, not a signatory to the Phase 1 business plan, and Plato said a comprehensive report on the impact of the finalisation of Phase 1 on city resources was being prepared.
"Rather than a dramatic impact on the city's resources, the city believes the completion of Phase 1 should be financed from a dedicated and ring-fenced budget provided by provincial or national government, rather than depleting an already committed city budget," he said.
If this did not happen, "critical focus areas" of projects already approved - for human resources, capital and operational budgets, municipal infrastructure, grand funding allocation and housing subsidy allocations - would have to be reconsidered.
It would also require reprioritising other projects and giving preference to the N2 Gateway project.
Plato said he would meet Sexwale and provincial housing MEC Bonginkosi Madikizela to discuss the city's participation, roles and responsibilities in the next phase of the project.
"At this meeting I will seek to conclude issues around the finalisation of Phase 1. The city is, however, very cautious because the project is planned and is proceeding in parallel with its formal and legally required Integrated Development Plan and budgeting process."
- Cape Argus
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