Finance Minister Trevor Manuel said on Wednesday that the Soccer World Cup will be one of the sources of output growth improvement in 2010.
Presenting his budget in Parliament, Manuel said he expects output growth to improve next year, supported by public infrastructure spending, lower interest rates and a recovery in the world economy.
At a press conference in Parliament, Manuel said that the World Cup was not just about bringing the world’s best soccer players to this country or about building soccer stadiums, but was also a means of improving the country’s infrastructure.
The Budget Review points out that the World Cup project covers a range of activities from stadium construction to transport, tourism and marketing, health and disaster management, safety and security and telecommunications.
“Stadium construction is progressing rapidly,” the Review says, “with some projects ahead of schedule”.
To provide for increased construction costs and improved project management, a further R463-million is allocated to the stadiums construction grant. “By the end of the process the government will have contributed R11,5-billion to stadium construction,” the Review said.
Allocations of R505-million in 2009/10 and R210-million in 2010/11 will support host city preparations for the Confederations Cup this year, and the main event the following year.
The public transport infrastructure and systems grant receives an allocation of R11,9-billion over the next three years to establish, construct and improve new and existing public transport infrastructure and systems in large municipalities including the 2010 host cities.
The Review notes: “The cities of Cape Town and Johannesburg are moving ahead with plans for bus rapid transit systems intended to facilitate greater use of public transport and alleviate road congestion.” – I-Net Bridge