The Esplanade Government Building in the Durban city centre is the latest property that is set for a multimillion-rand refurbishment under the KwaZulu-Natal department of public works and infrastructure (DPWI) program.
MEC Martin Meyer announced on Monday that the department would venture into a R800m project with eThekwini municipality and a private contractor, Enza Construction, to renovate and redevelop the building to its former glory.
“During its prime, the building stood tall at seven storeys, 18,000m2, but it also stood for what the department could achieve if our assets are utilised efficiently. Sadly, today we can see that's not the case,” he said.
Meyer said the building was among hundreds of similar assets that stand as a “painful reminder” of what becomes of “unmaintained and forgotten treasures”.
Among those are the Palm Beach Hotel and the Seaman’s Institute in the South Beach area, which were reclaimed in September and are undergoing restoration.
These were discovered during an audit of problematic buildings in the province that he mandated when he took up office in June.
“We needed a clear picture of how much of an issue we’re dealing with as a department that’s interested in making taxpayers’ money benefit the public.”
Meyer said this was part of a memorandum of agreement the department signed with the city last month to co-ordinate their efforts in dealing with hijacked and abandoned buildings.
It also forms part of eThekwini’s City Regeneration programme, which focuses on problem buildings, public space management and enforcing our bylaws.
Deputy mayor Zandile Myeni said the building was one of 76 buildings the city has identified which are dilapidated, hijacked and/or overcrowded.
“Of these, 58 are privately owned and 18 are government-owned buildings. As a city we have committed ourselves to work with all the relevant government departments, state-owned enterprises and the private sector to turn this around.”
She added the department was embarking on a strategy to release unused properties for redevelopment to grow the economy, a strategy the city had adopted as far back as 2021.
A total of 57 properties have since been released to the private sector since it started implementing the land release strategy.
“Last week we witnessed the reopening of the Durban Beach Cafe, part of the first batch of properties that were released in 2021. In September, we further released 34 properties for expression of interest. This process will be closed next month.”
She said eThekwini was looking to release 149 properties with a total investment of R4bn.
“In the current financial year we plan to release 50 properties for redevelopment by the private sector, so we’re happy that all of this is being done and is implemented through the District Development Model, which is also part of the vision of the GPU.”
Enza Construction CEO Vincent Crowie said it was a privilege for the 24-year-old company to partner with the department on a project.
He said they have already worked with the department in other iconic projects including the Shepstone Road Court in Durban, Moses Kotane/Garankuwa primary schools in Gauteng.
“It’s now an opportunity to reinvigorate the building, giving it a new life and bringing back the seat of administrative authority to a part of the city that needs an injection of vibrant life.”
“This will catalyse the entire Victoria Embankment area, which is still regarded as one of the most unique urban spaces in the world. It’s sad to see a building like this unoccupied for so long, but we are certainly going to change that.”
Victoria Embankment is flanked by Durban's port and yacht marina.
Crowie said the project will be completed at the end of 2027. The first half of 2025 will be used as a design/development period, then they will start construction which is expected to last two years.
Meyer said this project gives them a chance to build “differently”, which is particularly important in the time of climate change.
“Climate change is the reality of this generation and the generations that will come after us. This man-made phenomenon now means we must greatly consider what we put out because it affects what we get back from nature.”
He said the building would feature a minimum four-star rating as recognised by the Green Building Council of South Africa , the lifts inside will regenerate energy back into the building, it will host PV panels on the roof and it will harvest rainwater.
Meyer added the building will house multi-departmental staff, offices and other amenities. This will help cut back on the leases they pay each year to rent office spaces.
“By putting government staff in buildings that we own and maintain, we will divert this costly rental amount into other areas of priority.”
He said the government could also rent out office space to private companies to make the building self-sustainable.
He also addressed concerns about the sale of state buildings to the private sector. He said there were assets the government doesn’t need and they were putting a huge strain on finances.
“This department’s bill that we pay on rates and taxes to the various municipalities of KZN is over R1.7bn a year. It’s unsustainable for a government department to pay that.”
They are looking at “new ways” to use those buildings. That includes using some, making others available to NGOs to serve the community, continuing with 99-year leases through private-public partnerships and selling others.
“Our asset register is too big and it’s becoming a drain on the fiscus of the department and government as a whole.”
He said they are also in talks with various banks to ensure the properties are not sold to the same group of people who benefit repeatedly. .
“We will work on a project with commercial banks and others like the development bank to make sure that new players and people from disadvantaged communities will also get a fair slice of this cake and get to be playing in this market.”
He said the audit was nearing completion, but it had uncovered “thousands” of problematic buildings, including hospitals and schools, in the province. He will give updates on that once the audit is complete in the coming weeks.
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