The business plan for the redevelopment of Njoli Square at KwaZakhele - estimated to cost about R170-million - has been approved by the municipality, but funding is not readily available.

The funding, according to the plan, should be sourced from the 2010 Legacy Fund (R15-million), with the municipality putting in R34-million over a three-year period, and R121-million coming from the national treasury.

The municipality is now studying the recommendations of the business plan so that implementation can start.

The primary outcome of the business plan is the determination of the financial, engineering and property acquisition feasibility of the project.

About 49 properties will be affected, and owners will receive an above-market price for their properties as compensation, or alternative properties in close proximity will found for them.

The concept envisages the transformation of the Njoli Square precinct with the introduction of a traffic circle with various civic, public transport, commercial (formal and informal) and tourism facilities housed within a dome-shaped building inside the traffic circle.

A report tabled at a recent council meeting said the concept measures a total of approximately 8 400m? under roof. It will have two floors, with a range of municipal, community, social and civic-related functions held on the ground floor of the dome.

The first floor will be reserved for medical suites, and the second floor has been earmarked for a state-of-the-art library which will serve as a study, training and exhibition centre. Small business stalls, livestock trading areas and informal trading spaces create linkages between the building and the public transport facilities wedged between the buildings and the outer ring.

Infrastructure and engineering business unit manager Ali Said said about 150 informal traders will be housed in "world-class" trading facilities.

"The beneficiaries of the project will be the businesses around Njoli Square who will benefit from increased exposure and improved trading conditions, and the public transport operators who will have new facilities to operate from, including offices, waiting rooms and ablutions," said Said.

He also said about 10 000 people currently use public transport from Njoli Square, a figure estimated to increase to 30 000 by 2020. The 250 000 population of KwaZakhele and its surrounds will also benefit from accessing municipal and medical facilities on their doorsteps.

Although capital costs will not be recovered, the project could be self-sustaining as projected rental income exceeds the operational cost base.

"The availability of land for the development is a critical issue and extensive consultation has been undertaken with affected property owners . . . Resistance from some sections of the community has been encountered that has impacted on the ability to conclude this process," said Said.

"Further delays in finalising this process could negatively impact on the feasibility of the development."

The project is part of the Vision 2020 projects, and the council has authorised municipal financial officer Peet van Rooy to secure grant funding from national treasury for the project.

Eastern Province Herald