/ 17 January 2007

Zille issues warning over World Cup stadium

Cape Town’s share of the considerable Fifa 2010 Soccer World Cup benefits depend entirely on the new Green Point Stadium, mayor Helen Zille warned on Wednesday.

”Residents, and specifically objectors to the stadium, must be quite clear about the choices we face,” she told a special council meeting.

”According to the Local Organising Committee and the contract we have as host city with Fifa, we either build the Green Point Stadium in time or we will lose the World Cup for Cape Town.”

No one should think for a minute that if building the new stadium was stopped, by legal or other means, Cape Town would still have a ”plan B” semifinal elsewhere.

”Do not think that we will still get the money committed for the stadium for other projects.

”Do not think that the billions of rands of 2010-linked investments would still come if we are not a host city.

”What I am saying is not a threat or intimidation. These are simply facts that we must consider.

”We have meticulously followed due process and statutory requirements in order not to prejudice or jeopardise the planning and preparation for the stadium.

”We respect people’s legal rights in terms of the Constitution and the law, and the decision is up to them. But it would be a tragic pity if this investment opportunity for our city were lost.”

Zille said she did not believe the residents who objected were willing to throw away this opportunity to have state-of-the-art sports facilities, a magnificent urban park and a well-managed green lung in the city.

”This is the best chance that we have of ensuring that outcome.”

There could be no moral justification for this level of investment in an area such as Green Point, given the great development needs in other parts of the city, such as Khayelitsha, Mitchell’s Plain, Guguletu and Athlone and many others.

In the normal course of budgeting, Green Point would not get this kind of investment.

The Green Point Stadium was getting this funding only because Fifa wanted it to be the World Cup venue and it was part of an approved business plan, Zille said.

She repeated her commitment not to proceed on a path that would bankrupt the city.

The city would make a capital contribution to the stadium of R400-million.

”I intend to put a resolution to council at the end of this month establishing a price cap on the capex [capital expenditure] for the project,” Zille said.

”For this investment we are getting an incredible return.”

The total anticipated investment in transport was R6,5-billion, of which R3,5-billion had already been secured.

The national and provincial governments were likely to contribute the lion’s share of R6,3-billion.

Provincial and national government would contribute R1,8-billion to road-based public transport infrastructure.

Rail-based transport upgrades would amount to R1,7-billion, the airport upgrade would include R1,2-billion in infrastructure investment, while R1,4-billion would be spent on the bus and taxi rationalisation and recapitalisation.

An amount of R200-million would also be spent on pedestrian and cycle facilities.

From the private sector, the V&A Waterfront had plans to invest R7-billion, much of which was linked to 2010, with six new hotels to be constructed.

Further, Athlone stadium was already in the process of being upgraded as a training facility, while a new training facility was planned for Philippi.

”We are determined not to allow the benefits of 2010 to be confined to Green Point only,” Zille said.

The city had so far met every deadline set in terms of the step-by-step timing schedule agreed to with Premier Ebrahim Rasool in October.

”There are absolutely no grounds for the questions I still sometimes get from journalists on why there have been delays and who was to blame,” she said. — Sapa