eThekwini Municipality extends contract for Durban Point Waterfront management

The eThekwini Municipality outlined several reasons why it has increased the contract of the Durban Point Waterfront Management Association (DPWMA). 

At a council meeting on Wednesday, the eThekwini Economic Development and Planning Committee were given approval by eThekwini councillors to extend the contract period of performance by two years and seven months, commencing from 29 November 2025 to 30 June 2028. 

The municipality explained in its report that an amendment and an increase in the contract authority by R7.4 million for the provision of infrastructure maintenance at the Point Precinct by the DPWMA.  

In its report, the committee stated that the DPWMA has been identified as critical to both the retention and growth of Durban’s Tourism industry and in order to achieve this, it was agreed that a world class facility had to be created with services provided in the area exceeding those provided by the municipality. 

To redevelop the Point waterfront in line with the city's vision, the Durban Point development company (DPDC) was formed as a consortium.

In August 2024, the Catalytic Projects Directorate (CPD) hosted the Executive Committee on a site visit to projects which included the Point Precinct area. 

Looking at how the area is being maintained, City Manager Musa Mbhele requested the unit to extend the DPWMA contract. 

The scope of work includes the maintenance of infrastructure at the Point precinct on behalf of the city. Work includes maintenance of coastal storm-water, road infrastructure, water and sanitation, cleaning of service areas of waste management, park leisure related work and general maintenance. 

The committee outlined the following: 

• Cost efficiency: The DPWMA delivers maintenance services at approximately R2.5 million per annum, compared to an estimated R20 million per annum if the city line departments assumed responsibility. 

• Proven performance: The Point Precinct is a major tourist destination consistently maintained to municipal and industry standards. Line departments regularly oversee DPWMA work with performance management reports confirming satisfactory results. 

• Residents satisfaction: Residents, who pay a special rates levy for top-up services under existing contracts and title deeds are satisfied with the quality of services rendered

• Rapid Emergency response: DPWMA provides immediate response to emergencies, a reliability valued by residents and stakeholders 

• Stakeholder collaboration: works closely with property owners, developers, Durban Point Development Company (DPDC)  to uphold precinct standards and the shared development vision

• Technical competence: possesses the specialised skills, resources and sub contractors needed to maintain the precincts unique infrastructure, 
• Strategic insight: In-depth understanding of the revised Point Precinct Framework Plan. 

The committee stated that the cost difference between what the city estimates and the DPWMA projection is R54 million, implying that the city would spend more than 700% on maintenance if the DPWMA contract was not renewed 

zainul.dawood@inl.co.za