Vigilance saves Coega IDZ developer waddle of cash in municipal bills

Vigilance by the Coega Development Corporation (CDC) over its municipal bills saved it as much as R4.5-million from the Nelson Mandela Metropolitan Municipality (NMBM) in the last year, according to the entity’s year-end financial results released in Port Elizabeth this week.¬†
Nelson Mandela Metropolitan Municipality acting Municipal Manager, Mpilo Mbambisa

Nelson Mandela Metropolitan Municipality acting Municipal Manager, Mpilo Mbambisa

SAM_1165The CDC, developers of the Coega Industrial Development Zone (IDZ) and Nelson Mandela Bay Logistics Park adjacent the new Ngqurha deep water port 20km east of Port Elizabeth, also acts as landlord over the zone and collects services consumption fees from tenants on behalf of the metro’s municipality.

For the 2012/13 financial year, the bill for municipal services amounted to R69.1-million, and that’s only because of write-backs demanded from the municipality.

“In compliance with signed lease agreements between the CDC and its investors, the CDC bills each investor in the IDZ and NMBLP. Total revenue of R69.1-million was billed for 2012/13 financial year. In addition, much effort was put into resolving billing issues with the NMBM. During the course of the financial year, all accounts received from the NMBM were scrutined to ensure proper billing.

“As a result, write-backs by the NMBM totalling R4.5-million were recovered, the accuracy of monthly billing by the NMBM is now more acceptable. Consequently CDC is better able to identify and allocate costs of municipal services to (tenants),’ wrote the company in the financial report.

For further reading of CDC’s financial year-end report published Tuesday click here