The City of Cape Town on Wednesday said its Integrated Rapid Transit system has not been derailed by a budget blunder. 

The city has been in the spotlight since it emerged several months ago that there had been a massive miscalculation of the cost attached to the project.

What was thought to be a R1.3 billion price tag in 2008 nearly doubled to R2.3 billion a year later. And the city has warned the costs will more than likely balloon even more.

Earlier this week the city announced that a senior official would face disciplinary action because of the costing oversight but it has declined to say who the official is. 

At a council meeting on Wednesday, Mayor Dan Plato announced the rollout of the IRT system will be commensurate with the funding available. 

IRT head Mike Marsden told Eyewitness News a scaled down version of the project is still going ahead.

“IRT will be implemented in accordance with the funding that is available and all the work that has started will be concluded," Marsden.