Development halted

When Bob Naidoo, Lephalale municipal manager spoke to Northern News in January this year, he predicted that 2013 would be a challenging year for the area’s municipality. Its biggest challenge, he said, would be the lack of infrastructure in one of the fastest growing towns in South Africa. And he was right.
Disgruntled business owners and developers met at the Palm Park hotel last Wednesday to discuss a very pressing issue in Lephalale – the lack of available electricity. The municipality has been warning developers for several months through local media that electricity usage is at its peak and that new building plans would be approved, but that there are no guarantees for new electricity connections.
Naidoo confirmed on Tuesday that no new connection will be made until the new substation is completed in the latter part of 2015. Completion of the substation will triple the electricity supply.
But will it be too late for developers and building material retailers who could be facing a complete standstill in development for the next 18 months! Braam Crots, owner of Build It in Lephalale and vice chairperson of the Lephalale Business Chamber, says this is the worst news ever.
“We rely heavily on development in Lephalale, there is no way we can wait or try to hold on until the end of 2015. Business has already dropped by 35% since January, not only because of the shortage of electricity, but also because of the strikes at Medupi. Northern News spoke to another retailer who chooses to remain anonymous. “We are feeling the lack of progress due to infrastructure restrictions and we foresee that a lot of businesses will be forced to close shop. It is of great concern to us.”
Naidoo agrees that the current situation is detrimental for the local economy, but ensures residents that the municipality is doing everything in its power to provide more electricity as soon as possible. “We have appointed an electrical engineer who has met with Eskom and the department of human settlements on several occasions to try and come up with solutions. We are optimistic that we may be able to, however, move the date for the completion of the new substation forward. We are currently waiting for parts and Eskom is involved at a high level in helping us achieve our goals. In the meantime we are looking at interim solutions to technically access more power from the grid. We are reluctant to put too much pressure on the current supply as this will result in blackouts. We want to attract investment and we want more development, but the lack of infrastructure remains a challenge.”
Crots, is not convinced, saying that local businesses have lost confidence in the municipality. Lofty Fourie, a local developer agrees with Crots saying that the municipality is to blame for potentially ruining the local economy. “The deadline for the completion of the substation has been extended with six months since the beginning of this year. This is completely unacceptable, people are already losing jobs and investors are packing up and leaving. They are robbing hard working businessmen and developers from their income and the opportunity to be part of the development of Lephalale. Why has no groundwork been done to prepare for the arrival of the transformer? Why have they not at least appointed a contractor at least? It is unacceptable and should be investigated as far as I am concerned. Bad planning on the part of the municipality is going to cripple our local economy."
Yvette Malan a developer and property specialist in Lephalale says that some developers are now considering legal action against the municipality. There are developers who have in their possession letters from the municipality stating that they have been granted electricity, only to now realise that there is no electricity for their newly built developments. Malan says she advises developers to build green.
“In the end solar energy might be more expensive, but could be the only solution to the lack of housing we are currently experiencing. Rental costs are once again skyrocketing.”
According to Naidoo a meeting will be held next week with developers who have had plans approved by the municipality, but are waiting for new connections. In the meantime, developers and the business community of Lephalale is holding its breath and anxiously waiting for better news. - Valerie Cilliers (valerie@noordnuus.co.za)