The initial design had been for a 406-mm or 16-inch pipeline, and had been based on historical economic growth rates, while the new configuration was in line with South Africa's 6% growth target. The proposed development, for which Petronet still requireds a licence, would raise overall capacity to 25-bn li/yr, and would have to be installed before the current network reached its full capacity in 2010. But CEO Maria Ramos cautioned that the capital cost could rise further if the project continued to be delayed by regulatory uncertainty. Tension between the utility and the regulator spilt over into the public domain earlier this year after the National Energy Regulator of South Africa (Nersa) rejected Transnet's request for a 5.6% tariff adjustment. The ruling was based on the fact that the tariff-determination methodology had not been finalized, and Nersa could thu only grant a 2.5% increase. Ms Ramos initially slammed the decision, claiming that the decision was jeopardising Petronet and the proposed Durban-Gauteng project. However, she struck a far more conciliatory note recdently, saying that the group was engaging Nersa on the methodology. She said that it was vital that a solution be found that would enable Transnet to earn a "fair return on invested capital", given that, although it was a State-owned enterprise, it was not receiving any subsidies. She also reported that a special executive-level unit had been established to manage its relationship with the various economic regulators governing Transnet businesses, including Nersa.