In a rare show of unity, the African National Congress-controlled Western Cape government and the Democratic Alliance (DA)-led City of Cape Town have reached a "political agreement" over the planned R2,49bn 2010 Soccer World Cup stadium in Green Point.
Premier Ebrahim Rasool and mayor Helen Zille gave the nod on Monday to the business plan, to be presented to national treasury by Tuesday's deadline.
The agreement between the provincial government and the metropolitan council was reached amid growing tension between the two spheres of government over proposals to change the system of government in the City of Cape Town.
In terms of the joint plan, R2bn will be sought from national treasury while the city and provincial government will raise the remainder.
The plan will form the basis for negotiations aimed at establishing how much of the R8,4bn that has been allocated for the construction of all 2010 stadiums will go to Cape Town.
Western Cape and Cape Town have asked government for R2bn, which along with separately calculated infrastructure spending on the public transport system will bring investment of more than R5bn to the city.
Rasool said "this is a business plan fully consulted and worked through between the province and city".
The city and its DA-led council have pledged R400m. The ANC-led province will need a further R110m to match the city's investment.
Zille said both the province and the city had made an "important" joint proposal that central government step in to underwrite major risk areas that could affect cost escalations, such as currency fluctuations and value added tax exemptions on the project.
She said these factors could have a "serious effect" on budgeting for the stadium, and that this was gleaned from experience in the construction of stadiums elsewhere in the world.
The business plan spells out "tremendous" world cup marketing opportunities. An estimated 500,000 foreign visitors are expected to arrive, and the television audience has been placed at 25-billion to 28-billion.
The event will leave a legacy of benefits that include new facilities, upgraded infrastructure, skills, and commercial and social development.
The Cape Town stadium could host as many as nine games during the world cup, including a semifinal game. A decision on the final site for the stadium, either on the Green Point stadium site or on a new site on the city's Metropolitan golf course, is imminent.
Rasool said the plan emphasised safety and included the introduction of railway police and extension of a closed-circuit television camera system across Western Cape.
The province was bidding for the additional police resources announced by Finance Minister Trevor Manuel in his medium-term budget last week.
It would improve safety overall and not only for 2010.
Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge
