|
Budget approved for CT stadium
08/03/2007 18:42 - (SA)
Cape Town - The Cape Town city council on Thursday afternoon approved a R2.9bn budget for its 2010 Soccer World Cup stadium at Green Point.
The approval brings to an end most of the uncertainty that has surrounded the funding of the 68 000-seater structure, destined to host a semifinal.
It also clears the way for the award of the tender to the preferred bidder, a Murray and Roberts/WBHO consortium.
Mayor Helen Zille had been contemplating canning the project until international banking group Investec this week promised to guarantee a R185m budget shortfall.
The guarantee is set against income from a post-2010 operating lease on the stadium, which Zille said would, despite the guarantee, go out on public tender.
The budget was approved by the council after a meeting of more than three hours.
African National Congress councillors, who make up an opposition to the Democratic Alliance-led multiparty city government, initially expressed concern over the implications of the Investec guarantee, and demanded to see the agreement itself.
The council was briefly adjourned while copies were procured, and again for the party to caucus on it.
However in the end the ANC supported the vote.
The city's 2010 spokesperson Pieter Cronje said the council's bid evaluation committee would meet between Thursday and 13:00 on Monday, which was when the bid adjudication committee was expected to formally award the tender.
He said: "It should take about another week to have some activity on site. They'll start with the partial demolition of the existing stadium."
This would be followed by diversion of bulk services, and casting of foundations.
Cape Town is still seeking a central government guarantee to cover escalation above the 10% the city has already provided for.
Treasury has undertaken to put together a task team to examine the issue in relation to all host cities.
Of the total stadium cost of R2.9bn, R1.9 billion will come from central government, R500m plus the Investec-guaranteed R185m from the city, and R212m from the Western Cape provincial government.
- SAPA
|
