Buffalo City Metro has finally managed to negotiate the purchase of a portion of farmland in Beacon Bay for R2.3m that will make the Beacon Bay-Gonubie access road a reality.
Metro officials had over recent weeks been involved in intense negotiations with the landowner, who initially declined the metro’s offer.
The land – portion 13 of farm 1234 – falls within phase two of the multimillion-rand Beacon Bay-Gonubie link road project.
In a report tabled before council, BCM head of infrastructure services Nceba Ncunyana said a market value of R2.2m, excluding VAT, was initially agreed upon, but the landowner, who is unnamed in the council report, declined the offer.
The owner instead demanded an access road be constructed from the main road to his farm as well, as part of the deal.
He said this would have pushed the cost too high for the metro.
“The cost estimate for this service lane will be R9.6m which is very high compared to the market value of the land. Therefore no agreement on the matter has been reached thus far,” said Ncunyana in his report.
Speaking to the Daily Dispatch, BCM spokesperson Samkelo Ngwenya said: “We can confirm that negotiations were conducted with the owner of portion 13 of farm 1234 and unfortunately, the process was prolonged by disagreements on purchase price and access to the link road.”
Ngwenya added: “As it is in our interest to take the project forward, all the issues were subsequently addressed and the private owner was compensated. There has been no delay reported due to this acquisition process.
“We are on record with our commitment to see this project through.”
The tender for the mega project was awarded in April last year to Down Touch Investments, with the contract expected to run for 18 months.
March 19 2019 is the expected completion date.