The national government is set to inject an additional R200m into Buffalo City Metro’s troubled Water World Fun Park project, premier Oscar Mabuyane confirmed on Wednesday — despite more than R120m already spent on the stalled development.
But Buffalo City Metropolitan Development Agency (BCMDA) spokesperson Nomkhitha Zokufa said “no final investment decision has been concluded, and no funding amount has been approved”.
“Any potential support from investors would be subject to established intergovernmental processes, funding frameworks, and the necessary governance approvals. It would therefore be premature to speculate … until such processes are formally completed," said Zokufa.
The project has remained in limbo after construction was abandoned more than two years ago following legal disputes between the contractor and BCMDA. The incomplete site was later vandalised.
Mabuyane revealed in his recent state of the province address that the project was among Eastern Cape tourism projects that had “passed compliance stage for national funding”.
On Wednesday, he confirmed that the national department of tourism had approved R200m towards refurbishing the ruined facility.
“We welcome the investment of R200m. It was initiated by the municipality, and at some point had its own difficulties, but I know the municipality is still committed to finish it,” Mabuyane said.
The city has already invested more than R120m in the development, while an additional R33m was paid to the contractor who abandoned the site in 2023.
Mabuyane on Wednesday referred further questions about the project to BCMDA.
The department does not own these projects nor does it fund these projects
— Princess Faku, Buffalo City mayor
Buffalo City mayor Princess Faku also directed queries to the agency, but previously welcomed the planned investment, saying she was “quite excited, as hundreds of jobs would be created”.
The national tourism department appeared to distance itself from direct responsibility for the project.
“The department does not own these projects nor does it fund these projects,” spokesperson Aldrin Sampear said.
“The department’s role is limited to facilitation between project promoters and investors.”
Late in 2025, the department indicated it was seeking a public-private partnership to help salvage the stalled development.
At the time the department, led by tourism minister Patricia de Lille, said it was exploring the possibility of entering into a commercial public-private partnership (PPP) with investors willing to contribute about R80m towards the project.
The call for investors followed an approach by the BCMDA requesting grant funding to complete the facility.
An online advertisement later invited potential investors to express interest in backing the development.
According to the call, the R80m investment would constitute 41% of the total project cost, with a successful investor entering into a commercial PPP, equity and debt partnership with the project owners, BCMDA.
Plans for the broader Water World precinct included hotel and conference facilities.
The project has since fallen under the spotlight of a Special Investigating Unit (SIU) probe.
At one stage, the BCMDA told parliament’s standing committee on public accounts (Scopa) that an additional R40m would be required to complete the project.
The agency had proposed entering into a PPP arrangement, but that proposal was rejected by MPs visiting the site.
BCMDA chief executive Ayanda Gqoboka later told the committee it had never been the agency’s intention to partner with a private investor when it approached the department.
Instead, the agency had hoped to receive grant funding to complete and operate the project itself.
By Wednesday it was still unclear whether the national tourism department had secured a private investor or whether the R200m allocation would come directly from the government.
City officials claimed in late 2023 that the project was about 95% complete.
However, a site visit in 2025 painted a very different picture.
Buildings had been vandalised and stripped of electrical cables and water pipes.
Roofs, ceilings, doors and even toilet seats had been removed.
Windows and mirrors were smashed, while machinery, equipment and building materials lay scattered across the property.
The perimeter fence had also been removed.
More than a year later, the condition of the site remains largely unchanged.
Communities and businesses have repeatedly heard announcements of investment in Water World, yet the facility remains unfinished and unable to deliver the economic value it was originally intended to generate.
— Luthando Bara, Black Business Forum president
Business leaders and political figures have offered mixed reactions to the latest funding announcement.
Black Business Forum president Luthando Bara welcomed the planned investment but cautioned that stronger oversight was needed.
“The development of tourism infrastructure is critical for economic growth, job creation, and positioning Buffalo City as a competitive coastal destination,” Bara said.
“While we welcome the investment, we also wish to caution against what may become a situation of pouring money into a leaking bucket.
“Over the years, significant public funds have already been directed toward this project with very little visible progress.
“Communities and businesses have repeatedly heard announcements of investment in Water World, yet the facility remains unfinished and unable to deliver the economic value it was originally intended to generate.
“What the city requires now is not another cycle of funding announcements, but decisive project management, transparency and accountability to ensure that this investment finally delivers a completed functional facility.”
He said the project still had the potential to transform the local tourism economy if completed and managed effectively.
“Water World has the potential to become an anchor tourism attraction for the metro, drawing visitors, stimulating the hospitality sector, supporting small businesses and creating employment opportunities, particularly for young people,” Bara said.
“But this potential will only be realised if the project is completed and properly managed.
“Tourism infrastructure must translate into real economic participation for local entrepreneurs, service providers and communities.”
Until you have properly interrogated or investigated where the first pool of money went to, why do you want to put more money on it?
— Lizelle Maurice, Border-Kei Chamber of Business chief executive
Border-Kei Chamber of Business chief executive Lizelle Maurice also welcomed the planned investment, saying it could help strengthen Buffalo City’s tourism offering.
A completed Water World, she said, would add to our offering as the city when it comes to tourism.
“The more tourist attractions we have as the city, the more it adds to our ability to market this city to more potential investors,” Maurice said.
However, she urged authorities to ensure proper oversight of the new funding.
“Until you have properly interrogated or investigated where the first pool of money went to, why do you want to put more money on it?” she asked.
Maurice said the city must make sure they do not drop the ball in investigating what exactly happened to the millions already spent.
DA councillor Sue Bentley also expressed scepticism about the additional funding.
“It makes no sense to throw good money after bad money, in this case the good money being the proposed R200m from national government after the bad money, which is in excess of R120m, spent by BCMDA on this defunct project,” she said.
“While there is an investigation by the SIU into the spending and obvious irregularities at Water World since it has been the responsibility of BCMDA as the developing agent, as well as it being under the scrutiny of Scopa, it would be a grave travesty for more money to be spent at Water World.”
Daily Dispatch
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