The cost of Cape Town’s 2010 Soccer World Cup stadium has been slashed by over a billion rand to bring it ”within reach”, the city’s mayor, Helen Zille, said on Tuesday.
The reduction from the original R3,7-billion quote to R2,68-billion still leaves a gap of R180-million, she told a media briefing.
The city is having ”frank” discussions with the provincial and national government about this amount and she hoped Cape Town will not have to forfeit the stadium over this amount.
”We’ve got to find other sources, but I don’t think it will be insurmountable,” she said.
”I’m optimistic that we’ll take that final little leap to the other bank of the river.”
Had the cost not been brought down, Cape Town would have had to kiss the stadium goodbye.
The national government has committed R1,93-billion to the project, the provincial government R112-million and the city R400-million — an amount Zille says ratepayers will not be asked to top up.
She said the cost reduction was achieved in two weeks of negotiations between city representatives and the preferred bidder, through what she called ”value engineering”, making minor structural adjustments and making the 68 000-seater stadium smaller by about 4m on the radius and 2m lower.
This had been done without compromising Fifa requirements, the conditions of the environmental authorisation from the province or the functionality and sustainability of the complex.
The preferred bidder is a joint venture between Murray & Roberts and WBHO.
Zille said a report on the funding gap had been submitted to the Fifa local organising committee, together with a repeat of the request that the National Treasury underwrite any major cost escalation above the 10% provided for in the tender.
Mayoral committee member for finance Ian Nielson said the Municipal Finance Management Act prevents the city from awarding the tender before all the funding is in place.
He said the outstanding R180-million will ”continue to exercise our attention” over the next few weeks.
The city hoped to make the tender award by February 23. — Sapa