The government is confident it will remain within budget for hosting the 2010 Fifa World Cup, says Deputy Finance Minister Jabu Moleketi.
Speaking in Cape Town at a media briefing ahead of Finance Minister Trevor Manuel’s Budget speech on Wednesday, he said he saw no reason why building stadiums would exceed the R17,4-billion allocated for the purpose.
He said R4,1-billion was provided in last year’s budget, and a further R13,3-billion is allocated from the 2007/08 budget. He pointed out that R8,4-million is for stadium construction and R9-billion for related municipal infrastructure, such as roads and transport systems.
Replying to a question about the reported escalation of stadium building costs, Moleketi said estimates had been based on an over-compensation for risk factors. He said the entire process was assessed by the finance department’s advisers, who concluded that the construction of the stadiums was within the budgetary allocations.
However, the stadiums will be built to the minimum standards required by Fifa and not have any frills.
He said if the cities concerned wish to build what he called ”iconic stadiums”, they should consult their ratepayers in order to raise the additional funding.
Manuel said during his budget speech that the agreements reached between the municipalities and the local organising committee for the Fifa World Cup on budgets have set a firm precedent.
”We must go out of our way to ensure a successful tournament and a lasting legacy beyond 2010, but fiscal prudence and sound budgeting principles must be adhered to at all times,” he said. — Sapa