By Chris van Gass

A start to the building of the Green Point stadium for the 2010 Soccer World Cup was within a whisker of reality following negotiations that cut construction costs by more than R1billion, mayor Helen Zille said on Tuesday.

Initial estimates for the 68,000-seat stadium, which will host a 2010 semifinal match, were set at R3,7billion and had been reduced to R2,68billion.

Zille said further negotiations were under way with Murray & Roberts and WBHO to reduce costs even further.

The tender was expected to be awarded by February 23. This would mean that contractors could be on site before the end of next month, within the deadline set by Fifa's local organising committee for construction to start.

Zille said the council was also in talks with national and provincial government to meet the funding shortfall.

She said Cape Town's report on bridging the funding gap had been submitted to the committee, with requests that the national treasury underwrite major cost escalations above the 10% escalation provided for in the tender. She said the city had achieved cost savings, mainly through the reduction in roof size, floor area and height of the stadium without materially affecting the design, appearance, light and sound reduction of the structure.

The savings were made possible through effecting minor structural adjustments and making the stadium smaller by about 4m on the radius and 2m lower.

Business Day