eThekwini signs deal to rehabilitate hijacked, vacant buildings

The national and provincial departments of Public Works are also backing the Memorandum of Understanding which hopes to revitalise the city's economy, and boost employment and tourism. 

It was jointly signed at the Durban ICC on Wednesday evening, where 50 troubled buildings were released for repurposing. 

Mayor Cyril Xaba said unused buildings are often hijacked and illegally occupied.

In August, he established a task team with Public Works and Infrastructure Minister Dean Macpherson to identify buildings that are no longer in use.

"From the 30 properties remains in 2023 - the municipality has achieved the following; R1.9 billion with R1.6 billion on the beachfront. One-hundred-and-twenty jobs to be created during construction, 629 jobs to be created after construction, 56.8million total rental income payable to the municipality in the first year. In total, eThekwini has attracted a capital investment, totaling R1.4 billion from the private sector.

READ: Public Works to release hijacked buildings in pilot project

He said a batch of these properties will be released soon for Requests for Proposals, which will close next month.

Macpherson believes this move will assist in optimising assets within the city, and reduce financial strain on the country.

"State property can be rented out to the private sector or in collaboration, can be refurbished. Alternatively they can be disposed of, if these state properties start generating an income it will enable the department have more funds availbable to maintain and build new school, hospitals and other critical infrastructure across the country. 

“Imagine the Department of Public Works and Infrastructure currently has billions in overdraft, no longer becoming a drain on the state fiscus but is generate income to build more infrastructure."