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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 4 : Municipal Budgets

19. Capital projects


(1) A municipality may spend money on a capital project only if—
(a) the money for the project, excluding the cost of feasibility studies conducted by or on behalf of the municipality, has been appropriated in the capital budget referred to in section 17(2);
(b) the project, including the total cost, has been approved by the council;
(c) section 33 has been complied with, to the extent that that section may be applicable to the project; and
(d) the sources of funding have been considered, are available and have not been committed for other purposes.


(2) Before approving a capital project in terms of subsection (1)(b), the council of a municipality must consider—
(a) the projected cost covering all financial years until the project is operational; and
(b) the future operational costs and revenue on the project, including municipal tax and tariff implications.


(3) A municipal council may in terms of subsection (1)(b) approve capital projects below a prescribed value either individually or as part of a consolidated capital programme.