/ 25 January 2006

Tshwane to get R1,5bn convention centre

A state-of-the-art convention centre and adjacent development precinct are to be built in Centurion, south of Pretoria, by June 2008 at an estimated cost of R1,5-billion.

”This project is of strategic importance to position the City of Tshwane as the African capital city,” project leader Jacob Ngakane said at the launch by mayor Smangaliso Mkhatshwa on Wednesday.

Ngakane said the project, named the Africa Gateway Precinct, will be the first of its kind on the continent and will attract infrastructure investment required for the 2010 Soccer World Cup.

He said the area will also be an appropriate site to serve the Pan African Parliament, which has a temporary home at Gallagher Estate in Midrand.

The convention centre will be able to host 2 000 delegates and include 20 ”breakaway” rooms with state-of-the-art technological facilities that for between 20 and 200 people each.

The development precinct around the centre is to make provision for two luxury hotels, a possible helicopter pad, as well as a retail and office park to be linked to the Centurion Gautrain station.

The Pretoria International Convention and Entertainment Centre (Picec), the group responsible for the development, will be given a 99-year lease and 25-year concession rights by the municipality.

Picec has a 70% black economic empowerment shareholding. Its three shareholders are Community Investment Holdings, Bantsho Investment Holdings and the Irish-based Chieftain Group.

The construction phase of the 560 000-square-metre venture is estimated to create nearly 20 000 new jobs.

”As regards job creation, it is estimated that the project will create a total of 19 170 jobs during the construction phase.

”Of these, 10 710 will mainly be building and construction workers, project managers and professional workers such as engineers and architects,” said James Gordon, group manager for Africa projects for Chieftain.

Gordon said an additional 19 610 permanent jobs will be created.

He estimates that once the project is completed and the area fully operational, it could generate R17,3-billion in annual new business sales and provide an additional R9-billion-worth of goods and services yearly.

Mkhatshwa said the convention centre is to complement those in Sandton, Durban and Cape Town, as South Africa has less than 3% of the international market of conventions.

Mkhatshwa commended Picec’s empowerment contingent and urged financial institutions to back the project. — Sapa