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2010 stadiums could be delayed
07/03/2007 21:44 - (SA)
Cape Town - A shortage of raw materials and procurement issues may delay the construction of stadiums for the 2010 soccer World Cup in South Africa, a government official said on Wednesday.
Malcolm Simpson, deputy director general at the Treasury's World Cup unit, said a shortage of skills, a lack of materials and rising costs could jeopardise the increasingly tight schedule for stadium construction and refurbishment.
"The risks of this project are high," Simpson told a parliamentary finance committee about a building programme which will create 107 000 jobs.
"Raw material supply side constraints (are) high ... On the procurement we considered this (risk) high, as there was possible litigation due to poor tender evaluation techniques and preparation of tender documents."
South Africa hopes the World Cup will stimulate growth in Africa's biggest economy by attracting hundreds of thousands of soccer fans and tourists. Sceptics have questioned whether it can finish the huge project on time.
Simpson said a task team had been set up to help the nine host cities with procurement challenges, given that up to R100m would be spent by municipalities each month at the height of construction.
South Africa has pledged R17.4bn for World Cup preparations, including stadium construction and refurbishment and the upgrade of a crumbling transportation system.
Officials in Cape Town, a tourist hub and the only major city not run by the ruling African National Congress, said they had secured private funding which would enable a R2.85bn to be built for the World Cup.
The cost of the Greenpoint stadium had initially been estimated at R3.7bn.
With the South African and Western Cape governments pledging R2.14bn, the city needed another R185m on top of the more than R500m it had already committed.
A breakthrough occurred when Investec Group, a South African financial firm, agreed to cover the city's shortfall in a deal tied to an option for an operating lease on the stadium after the World Cup was over.
"We are extremely grateful to Investec for this gesture that will enable Cape Town to participate in the 2010 soccer World Cup in the way envisaged by FIFA," Cape Town Mayor Helen Zille said in a statement.
Aside from construction worries, South Africa also faces the daunting task of convincing fans it can tackle one of the highest crime rates in the world.
- Reuters
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