/ 1 March 2007

SA group wants F1 circuit in Cape Town

A South African company said on Thursday that it was bidding to build a Formula One race circuit near Cape Town’s international airport at an estimated cost of R1-billion ($137,8-million).

David Gant, chief executive of the South African Grand Prix Corporation, told reporters the project had the backing of the South African government but could be scuttled by land problems.

The municipal and provincial governments as well as the company that runs the airport have not yet released the estimated 58 hectares of land needed to build the 5,7km circuit and a 17 500 spectator grandstand.

Another 175 hectares also would have to be secured to develop commercial and industrial parks linked to the track.

”They [Formula One] want to have a grand prix in Africa, specifically Cape Town,” Gant said.

”So if we get the land issue sorted out, I’m pretty confident that during the course of this year we will be able to present a viable licence application.”

At least one official in Cape Town, one of the hubs of South Africa’s booming tourism sector, is supporting the idea of building the circuit, which would accommodate racing cars and motorcycles.

Simon Grindrod, who oversees economic development in the politically-divided city, said he would champion the proposal.

The project, however, is likely to be overshadowed by Cape Town’s preparations for the 2010 World Cup, which will be played in South Africa. The city is scrambling to modernise its infrastructure ahead of the prestigious tournament.

Gant noted that government would not have to provide any funding for the Formula One project because it would be underwritten by overseas developers. ”I have no doubt that we will be able to source the capital required to build,” he said.

Formula One has a history in South Africa dating back to 1962, when a grand prix was held in East London in the Eastern Cape province. Two more such races were held there in 1963 and 1965 before the event was moved to Kyalami near Johannesburg.

The last South African round of the world championship was held at Kyalami in 1993 before disappearing from the Formula One calendar amid sporting boycotts aimed at ending apartheid-era white minority rule in the African nation.

Financial problems ended a brief return to the country in 1992 and 1993, the last race being won by Frenchman Alain Prost. – Reuters