Construction On Hold Until Environmental Report Is Complete

At an official design and construction contract signing with the Ilembe Consortium Wednesday, the Airports Company of South Africa revealed the cost for a new international airport, the country's third-largest, the King Shaka International Airport and Dube TradePort in Durban, was going to be nearly three times the amount of the original estimates.

The new airport will replace the current Durban International Airport.

Initial estimates for the project was around $343 million as announced by Finance Minister Zweli Mkhize in his 2007 provincial budget speech. The official price tag rang in at more than $932 million, according to the South African Mercury.

The last step is the Environmental Impact Assessment before the project can begin. Marthinus van Schalkwyk, Environmental Affairs and Tourism Minister is expected to issue a "record of decision" soon.

"The signing of the contract between ACSA and Ilembe, together with the Dube TradePort, represents a landmark moment for this project and brings to finality who will be building this new world-class airport," Mkhize said.

"We have reached a point of no return to have this airport built before 2010, and this is good news for KwaZulu-Natal. We have overcome many hurdles in this project and are grateful for the partnership with ACSA on the Dube TradePort.

"When ACSA joined the project, specifications were revised with the attendant increase in the amount required for the project from the original estimates to the current figure in order to deliver a state-of-the-art international airport," he said.

"We are ready to start construction as soon as the required approvals are in place," said Group Five CEO Mike Upton, a member of the consortium. Group Five is involved in several other current large construction projects, including the construction of the more than $274 million sports stadium in Durban, in preparation for the 2010 soccer World Cup, according to Engineering News.

ACSA's Chief Executive Officer, Monhla Hlahla, said the goal is to make sure the airport was complete and fully functional by 2010.

"Since late last year, we have been engaging with all relevant stakeholders to ensure that all legal and governance requirements are met," she said.

Tourism KwaZulu-Natal Chief Executive Ndabo Khoza also applauded the contract signing. "This is a really exciting time for the Zulu Kingdom, with direct international flights on the horizon for 2010," he said.

"International air access has always been a challenge for the province, with interconnecting flights from other cities, but that is set to change with this new airport. This is set to bolster both international leisure and business tourism visitor numbers to KwaZulu-Natal."

According to Hlahla, even though the contract is now signed, the company cannot begin actual construction until the EIA is complete. The contract was merely an affirmation of the final design, functional and expansion flexibility, and airport features and had nothing to do with the EIA.

"ACSA will continue to follow due process in all matters relating to this project, and the same will apply to the EIA study. Signing of the contract allows both ACSA and Ilembe to start certain processes within the construction and design framework, considering the schedule involved in delivering the airport by 2010," Hlahla said.

Ilembe Consortium chairperson Vusi Mavimbela said it was honored to be part of the "momentous project" it feels can make significant contributions to future economic development of the region.

The Ilembe Consortium is comprised of consists a large group of KwaZulu-Natal empowerment organizations and major shareholders of WBHO and Total Facilities Management Corporation in addition to Group Five.

FMI: www.airports.co.za, www.dubetradeport.co.za