The City of Cape Town says it is still waiting for a decision from the National Treasury on whether it will underwrite ”risk factors” attached to the construction of the Green Point Stadium, proposed venue for a 2010 Soccer World Cup semifinal.
Mayor Helen Zille told a public report-back session on Wednesday that provision for these risks is not included in the city’s revised costing of R2,49-billion for the project.
This is one of the reasons the amount has been reduced from an earlier estimate of R3,2-billion.
The city has asked the Treasury to undertake to underwrite these risk factors, which include excessive construction-cost inflation and foreign-exchange rate fluctuations.
The city’s executive director for service-delivery integration, Mike Marsden, said the revised estimate does include some escalation costs, but there is a risk that costs in the construction industry could start to rise.
Thirty percent of the country’s cement is already being imported, he said.
The city is in discussion with the Treasury to see if it can assist host cities ”in capping excessive escalation”.
”So far we have not received a definitive answer, but the indications are positive,” he said.
The central government has already committed to providing R1,93-billion of the total cost. R112-million will come from the Western Cape provincial government, and R400-million from the city.
Marsden said three companies have been shortlisted for the construction, and the principal contracts will be awarded on December 21. — Sapa