/ 16 November 2006

Treasury gives Cape Town R1,9bn for 2010 stadium

The government will give Cape Town R1,9-billion to build a 68 000-seater stadium in Green Point for the 2010 Soccer World Cup, the city said on Wednesday.

The funds from the National Treasury stem from R8,4-billion earmarked for 2010 stadiums, said Ian Neilson, Cape Town mayoral committee member for finance.

”National Treasury committed this amount after the city and provincial government submitted a joint business plan.”

The stadium would enable Cape Town to host a World Cup semifinal match.

The city will provide R400-million and the province R100-million, with a total of R2,43-billion available. An additional R60-million may need to be raised, Neilson said.

The city has provisionally reduced the projected cost to R2,49-billion from R3,2-billion.

Neilson said the lower figure would be possible if the Treasury accepted a proposal to underwrite the construction’s financial risks.

Costs were also lowered by the redesigned roof — which would be non-retractable.

Construction is due to start in January 2007. – Sapa