Johannesburg – While the City of Joburg is trying to free itself from financial difficulties that have impacted service delivery, a report on the state of the metro centre highlights that the City needs around R2 billion for a new building.
Workers at the metro centre have expressed concern about their safety inside the metro centre. The building has been declared unsafe and unfit for occupation in several reports and investigations.
An assessment report seen by The Star, details metro centre’s problems with plumbing, roof leakages, corroded pipes, electrical issues, and structural challenges.
The report recommended that one option was to embark on a major structural refurbishment programme of the buildings, currently estimated at over R835.7 million. The other option was to demolish and replace the metro buildings with new ones, with a modern look and feel at an estimated replacement value of R2.219 billion.
While structural defects are repairable, demolition can be informed by the City of Joburg’s internal decision, whereby a cost-benefit analysis is performed by comparing the ongoing maintenance costs of the remaining economic lifespan of the buildings plus the refurbishment costs estimated above with the replacement value.“
The report said it must be recognised that even a new building will incur maintenance costs.
“So, the decision to demolish or not solely rests with the City of Joburg’s internal decision.”
It is not clear where the metro would get the kind of money needed to demolish the entire metro centre. The municipality recently borrowed R2bn from the Development Bank of Southern Africa (DBSA). The loan was meant to bail the municipality out of financial difficulty and ensure that contractors are paid.
Meanwhile, the assessment report concludes that the metro’s leadership needs to find alternative buildings for its employees to work in while changes are being made to the metro centre.
“Either of the options listed above requires the City to find alternative accommodation for its staff during implementation. This temporary accommodation will add more financial burden to the estimated costs indicated above, unless they are accommodated in another building owned by the City. The total estimated costs for the temporary accommodation need to be computed before a final decision can be made,” the report said.
The Star has also seen a letter sent to the City of Joburg’s mayor, which indicated that staff members were in “grave danger” in the present structures.
“The metro centre building is about 50-years old. The building’s use and occupancy have increased over the years, with about 3 500 staff working in offices, excluding visitors. A building of this kind requires refurbishment every 10 to 15 years,” the letter said.
The Star