An aerial view of the Sibaya Precinct, north of Durban.
Image: Supplied
The eThekwini municipality is expected to contribute R7,8 million towards a road infrastructure upgrade in Umdloti that will unlock Sibaya coastal precinct housing development north of Durban.
The municipality intends to upgrade the M27 and M4 slip lanes leading to Jabu Ngcobo Drive. The municipality's Economic Development and Planning Committee (ECOD) is estimating that they will receive R3,8 billion in property rates during the 8-year roll-out period of the housing development.
In a report before the eThekwini Executive Committee(Exco) the recovery of the funds is expected to come from the KwaZulu-Natal Department of Transport (KZN DoT).
The Sibaya Coastal Precinct is conceptualised as a living, vibrant community that will contain offices, shops, restaurants, educational institutions, recreational opportunities.
The municipality stated that there are seven nodes earmarked for development in different phases of the Sibaya Coastal Precinct. The project is set to fully develop about 1,000-hectare mixed-use development. The investment value for the full development is approximately R23 billion. The development will also be beneficial to eThekwini wards 58 and 102.
According to the municipality the Sibaya precinct has experienced unprecedented market growth since inception, achieving the highest value in property transfers in the province and nationally in 2018.
The municipality stated that there has been over R1,5 billion in transfers in the last 6 months and there is a large demand from the private sector for more developments. The municipality stated that the demand for further development of the node cannot materialise unless the external road upgrades are implemented.
The eThekwini municipality is expected to contribute R7,8 million towards a road infrastructure upgrade in Umdloti that will unlock Sibaya coastal precinct housing development north of Durban.
Image: Google maps
The municipality stated that the socio-economic benefits for the Sibaya Coastal Precinct are anticipated to yield the following:
- The direct benefits to the Municipality through rates revenue alone ranges from approximately R219 million (2025) up to R770 million (2032) per annum for a full development.
- Upgrading the Phase I external road infrastructure will increase the permanent jobs to 20 000 (post construction/operational phase) and the temporary jobs to 50 000 (during construction), for the surrounding communities.
The ECOD stated that the developer Devmco Prop (Pty) Ltd proposed a contribution towards phase 1 road upgrades. The ECOD report stated that the total estimated cost for the full external road infrastructure required is R1,3 billion.