Political Correspondent

THE Ethekwini municipality is consolidating its status as a premier conference centre in SA, with an announcement yesterday that it is going to inject R400m to expand the Durban International Convention Centre (ICC).

Cape Town and Johannesburg are competitors with Durban for the lucrative conferencing business, and Port Elizabeth is also looking at establishing itself in this market.

Construction on the centre, which will include a sports arena suitable for exhibition sport, national indoor sports competitions, exhibitions, entertainment events and conventions, will begin in May.

Ethekwini mayor Obed Mlaba said yesterday that the projected economic and social benefits indicated that it would be in the council's best interests for the project to proceed as soon as possible.

Mlaba said the new ICC Durban arena was designed to extend the economic and social effect of the convention centre within the area and nationally.

He said an independent economic impact assessment had concluded that the construction of the ICC Durban arena would create 23000 jobs in the first 10 years of operation and that its development costs would be recovered fully through a positive contribution to SA's gross domestic product within the first year of its operation.

The council estimates that between 13000 and 15000 jobs would be created during the construction phase only.

"The decision is part of a commitment made by the council to South African Tourism regarding the proposed improvements to the facility to provide a 32000m² area, which resulted in Ethekwini retaining its status as the selected venue for Indaba until 2006," said Mlaba.

There was also potential for the private sector financing and development of a 200-room, three-star hotel as a public-private partnership within the site.

The cost of the hotel was estimated at R115m and this was not part of the council's R400m investment, Mlaba said.

He said various options for funding the project had been explored and, after "exhausting all of them, it has become clear that there is no other viable option for financing the development other than from the council capital budgets".

Nov 12 2003 07:52:55:000AM Xolani Xundu Business Day 1st Edition