Durban - The uShaka Marine World theme park is set to receive more than R120 million in funding from the eThekwini Municipality.
Executive committee (Exco) members yesterday recommended the approval of the transfer of grant funding of R129.6m that has been provided for in the 2023-2024 operating budget for the entity.
The bulk of that money will go towards funding the work of the South African Association for Marine Biological Research (SAAMBR), a non-profit organisation based at uShaka that manages Sea World.
A report on the matter revealed that the latest funding commitment may not be the last time the City has to step in to assist the entity financially.
“Noting that the Durban marine theme park operates close to a break-even level, the municipality confirms its commitment to ensuring the future financial viability of Durban marine theme park and to meeting any funding shortfalls that may compromise its continued trading as a ‘going concern’,” the report states.
The report shows that of this money, exco approved the disbursement of R72m to the Durban marine theme park in four tranches for the work undertaken by SAAMBR.
During the conceptualisation of
uShaka Marine World, said the report, the entity entered into a perpetual heads of agreement with SAAMBR for it to operate Sea World with effect from the opening of the park.
This agreement also facilitated the relocation of the old Durban Sea World to its current location under the banner of uShaka Marine World.
“In this regard, the entity committed to providing funding for the costs of their operations but this arrangement was amended in 2007 when the entity started experiencing revenue shortfall to fulfil its obligations. Hence, this amount is now provided by eThekwini Municipality.”
The report gave a breakdown of the money that will directly assist the entity, which includes a grant for R12m to help with the settlement of its electricity debt accumulated over the Covid-19 period, when it could not trade.
The report shows that an amount of R20m will be for capital projects to assist with acquisitions relating to infrastructure utilised by the park.
These capital projects are required for the effective operation of the entity, however, this does not include any new attractions. Major projects included in the grant allocation are:
- Generators.
- Replacement of dolphin stadium screen.
- Lightning protection.
- Energy-saving projects.
- Fireline removal and installation.
- Replacement of current existing slides that are corroded.
In addition, an amount of R18m will be invested to assist with the repairs and maintenance of capital infrastructure used by the park, excluding Sea World infrastructure.
Head of economic development Shunnon Tulsiram told Exco members that uShaka had battled during the Covid-19 pandemic, and had presented options to the City to stabilise its operations but the City did not have the budget to fund some of those plans.
He said it was important to remember that close to 1 000 workers worked at the entity, that some of its staff members had gone without a salary increase during the Covid-19 period, and that many people depended on the entity’s continued operations.
Mayor Mxolisi Kaunda said it was important to continue supporting the entity as it was integral to the city’s tourism economy and letting it fail would be devastating.
“Remember that the entity came to us and said they wanted to retrench (staff to manage costs). We (councillors) are the ones who said they must not, we as councillors must continue to assist it,” he said.
The transfer of grant funding was also approved for the Durban ICC as part of the 2023-2024 municipal operating budget.
A report said the entity requires funding of R15m for urgent capital items that are essential to maintain and operate the facilities.
These included:
- Replacement of leaking DEC roof.
- Upgrading of the ICC operable (partition) walls.
- Generators to mitigate load shedding.
- Railway station restaurant.