Mooikloof Smart City moves ahead despite outstanding government reimbursement

The Citizen

22-04-2025

The DA in Gauteng has commended the progress made and the successful completion of the first phase of the Mooikloof Smart City project.
The smart city is a landmark development poised to transform the east of Pretoria, bringing road development, bridging housing gaps and providing employment prospects.
This was revealed during a recent site inspection by the DA Gauteng Shadow MEC for Human Settlements, Mervyn Cirota, and the party's provincial spokesperson, Evert du Plessis.
Dubbed a 'green mega city', it is expected to become one of South Africa's largest sectional title housing projects, offering thousands of homes for the so-called 'missing middle' income group.
Launched by President Cyril Ramaphosa in 2020, Mooikloof Mega City is viewed as a smart city that will cater to South Africans who earn too much to qualify for fully subsidised housing, but not enough to afford a mortgage bond.
With a projected total value exceeding R84-billion, the development is one of 62 government strategic integrated projects (SIP) gazetted in July 2020 as part of the country's post-Covid-19 economic recovery plan.
The development spans over 200 hectares and will include more than 50 000 residential units with retail spaces, schools, offices, and other amenities.
The project is also a major infrastructure initiative aimed at creating jobs and stimulating local economic growth.
According to property developer Balwin, as it is an SIP, the Department of Public Works and Infrastructure is responsible for funding all external bulk infrastructure services, including water, electricity, sewer, roads, and stormwater systems.
Cirota said he was pleased with the progress made. 'This kind of state-of-the-art development project usually takes a lot of time, money and commitment, but I am happy with the pace that the property developer is moving [at].'
He said what they had seen so far was that it was an excellent development.
'There is a lot of work to be done, a lot of money to be spent, but it will be worth it in the end. We still have a lot of questions regarding the development, and a lot of unanswered questions, particularly regarding the inclusion of other income groups and the dynamics between the city, provincial government, and National Treasury.'
He pledged the party's support for the development, describing it as a major milestone to address housing needs and employment opportunities, as well as road development.
'Roads need to be developed in order to meet the growing demand, and I am certain that with this project, this area will be world-class.'
Cirota said they will be closely monitoring the project. 'We need to regularly visit the sites, we need to monitor what is being said and see what is actually being done. And what will be done to ensure there's progress and ensure that the promises made by the government and the developer are being carried out.'
Du Plessis emphasised the importance of ensuring that communities from nearby townships, particularly Mamelodi, are included in the Mooikloof Smart City development.
He said the project presents an opportunity to address housing needs closer to where people work. 'I recently spoke to a local councillor who highlighted that many people from Mamelodi travel long distances to work in this area. It is essential that housing is created within the development to accommodate these individuals, allowing them to live closer to their places of employment.'
Du Plessis said road infrastructure is of paramount importance.
Despite the progress, the project continues to face challenges, most notably, delayed government reimbursements.
Spokesperson for Balwin, Morné Reinders, said they have not yet been compensated for the bulk infrastructure investments made on the Department of Infrastructure's behalf.
'To date, we have successfully completed phase one of the infrastructure rollout, valued at R205-million, and have officially handed it over to the city of Tshwane,' Reinders said.
'This includes R90-million in bulk water upgrades, R35-million for bulk sewer infrastructure, R66-million in road upgrades, and R14-million in bulk electrical improvements.'
Among the key projects currently out on tender is the doubling of the Garstfontein Road carriageway, from the N1 freeway to Solomon Mahlangu Drive, an initiative that will significantly improve access to the Mooikloof area.
Despite the funding delays, Balwin is moving forward with its development plans, reaffirming its commitment to delivering quality housing and infrastructure.
Reinders said that though the developer has not yet been reimbursed, work on the next phase of the project is already underway.
'Phase 2, which is valued at about R150-million, is currently out on tender and construction is expected to commence later this month,' he said.
'This phase includes R31-million allocated for road upgrades and new roads, R16-million for stormwater improvements, and R6-million for the construction of a new reservoir, sewer systems, a pump station, and rising mains. Additional work includes R4-million in bulk water upgrades, R2-million in electrical infrastructure, and a major R90-million upgrade to the K147 (Zwavelpoort Road), which will serve as a key link between Atterbury and Garstfontein roads.'
Metro spokesperson Lindela Mashigo said the city's role in the development is to provide (not fund) bulk and link municipal engineering infrastructure, as well as provide ongoing facilitation support when required.
Mashigo said the development is taking place within the Mooikloof Manor Ext 2 and Ext 1, which is divided into Mooikloof Manor Ext 9 to 15 and Rietfontein Ext 16, that will be utilised for retail use.
'Balwin has installed the bulk water pipeline, sewer line and intends to construct the 2ML reservoir. The said bulk installations are to ensure enough capacity for Mooikloof Manor Ext 2, Ext 9-15 and Rietfontein Ext 16. Eskom is providing electricity to this development.'
He said the developer committed to providing affordable housing, and the city responded by assisting it where it requires assistance to develop within the city.
The plans, at that stage, however, only included First Home Finance units from about R500 000 to address the gap in the market.
'First Home Finance programme is a partly subsidised programme for qualifying residents whose household income is from R3 501 up to R22 000 per month and are first-time homeowners,' said Mashigo.
'Due to the demand for housing, the city needs to engage the developers to include social housing (affordable rental housing, also subsidised) for the project to be more accessible. The development was adopted as one of the city's Strategic Urban Developments (SUD) – these are projects facilitated by the Economic Development and Spatial Planning Department.'
He said the development is a major milestone in Tshwane, as it has rates income potential.
'Assuming that the value of the development on completion is R9-billion in the year 2029, local government rates and taxes could be in the region of R117-million per annum.'
Infrastructure South Africa has not yet provided a comment regarding the allegations of failing to reimburse the property developer for bulk infrastructure services.
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