Pretoria - Public Enterprises Minister Malusi Gigaba has appointed a five-member task team to probe the cost of overspending at Transnet's New Multi Product Pipeline (NMPP).
The expert panel team will investigate overruns as well as time delays at the transport parastatal's NMPP after Gigaba raised concern at the rise in the costs of the project.
The new pipeline, which will carry petrol and diesel between Durban and Johannesburg, is expected to cost R23 billion to build. The initial cost was estimated at just over R11 billion.
"The minister has previously raised his concern at the rise in the costs of the project, which will have implications for its expected date of completion, and consequently, for security of fuel supply. The minister expects the construction of the pipeline to be completed by December 2011, as per the construction licence awarded by Nersa [National Energy Regulator of SA]," said the department.
Pipeline specialist Ian Thompson; project management and construction specialist Professor Raymond Nkado; Advocate Kevin Trist (SC); regulatory and compliance specialist Inba Thumbiran as well as the department's project manager - a financial analyst Adam Seedat are charged with conducting the probe.
The team will compile three independent reports on governance, engineering and project management issues and independent legal opinion after which should recommend the appropriate course of action to be taken by government as the shareholder.
A comprehensive report of its findings is expected to be completed by the end of April.
"The team will be provided full access to Transnet personnel and information relating to the management of the NMPP project. Transnet has indicated their willingness to work with the team, and the minister welcomes this," said the department.
