Transnet has revised the cost of its new multi-product pipeline (NMPP) to R23.4 billion, the parastatal said on Wednesday.

This is up from the initial forecast of R11.1 billion in 2008.

In 2009 the cost was put at R12.67 billion and in November 2009 the cost increased to R15.4 billion.

Chris Wells, Transnet's acting chief executive attributed the revision to a number of reasons "including engineering and changes in scope, too tight a construction schedule at the outset and significant increases to steel and equipment costs compared to the original estimates".

The pipeline will replace the old line from Durban to Johannesburg that was built 45 years ago and which is nearing the end of its design life.

Wells added that the NMPP was being funded off Transnet's balance sheet "just as we have done with other projects".

Turning to Transnet's bond issuance, Wells noted that the preparatory work had been done and it was preferred that the bond be issued in dollars.

"We can afford to be opportunistic though in issuing the bond as we don't really need money right now."

The bond was to have been issued around six months ago but Wells said that the Greek sovereign debt crisis had broken out which had halted the process.