Transnet's new 550km-long fuel pipeline between Durban and Gauteng is expected to cost R23.4 billion, more than double the original estimate of R11.1 billion, the project's director said in Sandton, Johannesburg on Wednesday.
“This pipeline would have cost R23.4 billion (anyway),” said Neville Eve, explaining the factors that contributed to the increase.
These included a change of the Durban site, environmental requirements, changes to engineering and hydraulics and security features.
The additional funds would be raised from the parastatal's own balance sheet, and by issuing bonds on the international market. - Sapa