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Lack of money cause delays in WC preaperations
World Cup 2010 - 17 January, 2007
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Lack of money is the biggest problem causing delays in fixing infrastructure problems for the 2010 FIFA World Cup to be held in South Africa.
Moneyweb reports that Finance Minister Trevor Manuel announced that money allocated for refurbishments, upgrades and construction of stadiums would not be increased, even if the cities need more money.
Manuel allocated R 15 billion for the projects and said that if the cities needed more than that it would have to find it.
George Mohlakoana, 2010 Coordinator in Mangaung, said the cities were given its budgets at the end of November.
"We requested R 285 million, we got R 221 million. We then had to go back to the drawing board and try to close the gap," Mohlakoana said. "So we changed the business plan to bring down the costs."
He said that the Mangaung 2010 team agreed on the costs of R 245 million at the end of December last year.
"The balance will be covered by the city of Mangaung," he said.
The Free State stadium redesign plans will be finished by the end of January with construction set to begin in July 2007 and completed in July 2008.
The city needs about R 1.5 billion to complete all projects pertaining to the World Cup, which include road works, rail and other transportation upgrades and utility developments.
Right now the biggest obstacle for Mangaung is lodging. Mohlakoana said that the city only has 6,000 beds but needs 20,000.
"We have thought of ways to close the gap," said Mohlakoana. " We'll look at neighbouring towns and countries, like Kimberley and Lesotho for extra accommodation. Both are only an hour away from Mangaung.
"We did promise that this would be a Africa hosted event that needs to involve as many cities and countries as possible. We will also look at the use of hostel beds at Universities.
"There are also new hotels being built and we'll look at home based living - ask local people to host tourists," he said.
Mohlakoana said no decision was made regarding which companies would be responsible for the construction and operation of stadiums.
Murray & Roberts and Wilson Bayly Holmes-Ovcon had been chosen as the preferred bidders to build the 2010 World Cup stadium in Cape Town according to an announcement.
Cape Town also has a problem because some of the residents are opposed to construction of the new Green Point Stadium. The current stadium is being dismantled and will be redesigned.
Requests for proposals on the operator of the stadium will go out this month, Laurie Platzky deputy director general of strategic projects in Cape Town said.
"It is important to get that done as soon as possible because the final design of the stadium depends on the operator," Platzky said.
The city is currently negotiating with National Treasury about its request for a contribution of R 2 billion towards the cost of building the stadium.
Cape Town was able to cut the stadium's estimated building costs from R 3.3 billion to R 2.49 billion. The city and the province will provide R 500 million and the government will provide R 1.9 billion to improve Cape Town's infrastructure.
The costs do not include an additional investment in transportation infrastructure and facilities that are planned by agencies such as the South African Rail Commuter Corporation and Airports Company of South Africa.
"The upgrade of Cape Town Station, plus the pedestrian improvement between the CBD and Somerset Road leading to the stadium site, is already underway," said Platzky.
"Otherwise negotiations on funding for the upgrade of public transport are at an advanced stage and we are waiting for Budget Day to hear from Minister Manuel what will be forthcoming.
The city of Polokwane was allocated a total of R 697 million to build its new stadium with construction beginning in early February. Tshidiso Mothapo, a spokesperson for the host city said that construction would be completed by the end of 2008.
"We are still on track with the project," says Mothapo.
"The final cost for the project will be made available after the appointment of the contractor. More allocation of funds will be needed, but no figures are available at this stage."
The budget for Durban is around R 1.8 billion for the construction of King Senzangakhone soccer stadium.
Shortages of engineers and concrete have caused the cost of building the stadium to increase.
In November, the estimates were around R 1.6 billion but are now at R 1.9 billion to complete construction of the stadium.
An official who wanted to remain anonymous said that the city can find the money if it squeezes the debtors' funds. People owe a lot of money for water and electricity and that money could be used to fund the required developments.
An insider said that a decision on which company would build the stadium has been made, but the announcement would not be made until a later date.
Host cities that did not respond to Moneyweb's inquiries include Johannesburg, Tshwane, Nelson Mandela metro, Rustenberg and Bombela.
Moneyweb reports that Finance Minister Trevor Manuel announced that money allocated for refurbishments, upgrades and construction of stadiums would not be increased, even if the cities need more money.
Manuel allocated R 15 billion for the projects and said that if the cities needed more than that it would have to find it.
George Mohlakoana, 2010 Coordinator in Mangaung, said the cities were given its budgets at the end of November.
"We requested R 285 million, we got R 221 million. We then had to go back to the drawing board and try to close the gap," Mohlakoana said. "So we changed the business plan to bring down the costs."
He said that the Mangaung 2010 team agreed on the costs of R 245 million at the end of December last year.
"The balance will be covered by the city of Mangaung," he said.
The Free State stadium redesign plans will be finished by the end of January with construction set to begin in July 2007 and completed in July 2008.
The city needs about R 1.5 billion to complete all projects pertaining to the World Cup, which include road works, rail and other transportation upgrades and utility developments.
Right now the biggest obstacle for Mangaung is lodging. Mohlakoana said that the city only has 6,000 beds but needs 20,000.
"We have thought of ways to close the gap," said Mohlakoana. " We'll look at neighbouring towns and countries, like Kimberley and Lesotho for extra accommodation. Both are only an hour away from Mangaung.
"We did promise that this would be a Africa hosted event that needs to involve as many cities and countries as possible. We will also look at the use of hostel beds at Universities.
"There are also new hotels being built and we'll look at home based living - ask local people to host tourists," he said.
Mohlakoana said no decision was made regarding which companies would be responsible for the construction and operation of stadiums.
Murray & Roberts and Wilson Bayly Holmes-Ovcon had been chosen as the preferred bidders to build the 2010 World Cup stadium in Cape Town according to an announcement.
Cape Town also has a problem because some of the residents are opposed to construction of the new Green Point Stadium. The current stadium is being dismantled and will be redesigned.
Requests for proposals on the operator of the stadium will go out this month, Laurie Platzky deputy director general of strategic projects in Cape Town said.
"It is important to get that done as soon as possible because the final design of the stadium depends on the operator," Platzky said.
The city is currently negotiating with National Treasury about its request for a contribution of R 2 billion towards the cost of building the stadium.
Cape Town was able to cut the stadium's estimated building costs from R 3.3 billion to R 2.49 billion. The city and the province will provide R 500 million and the government will provide R 1.9 billion to improve Cape Town's infrastructure.
The costs do not include an additional investment in transportation infrastructure and facilities that are planned by agencies such as the South African Rail Commuter Corporation and Airports Company of South Africa.
"The upgrade of Cape Town Station, plus the pedestrian improvement between the CBD and Somerset Road leading to the stadium site, is already underway," said Platzky.
"Otherwise negotiations on funding for the upgrade of public transport are at an advanced stage and we are waiting for Budget Day to hear from Minister Manuel what will be forthcoming.
The city of Polokwane was allocated a total of R 697 million to build its new stadium with construction beginning in early February. Tshidiso Mothapo, a spokesperson for the host city said that construction would be completed by the end of 2008.
"We are still on track with the project," says Mothapo.
"The final cost for the project will be made available after the appointment of the contractor. More allocation of funds will be needed, but no figures are available at this stage."
The budget for Durban is around R 1.8 billion for the construction of King Senzangakhone soccer stadium.
Shortages of engineers and concrete have caused the cost of building the stadium to increase.
In November, the estimates were around R 1.6 billion but are now at R 1.9 billion to complete construction of the stadium.
An official who wanted to remain anonymous said that the city can find the money if it squeezes the debtors' funds. People owe a lot of money for water and electricity and that money could be used to fund the required developments.
An insider said that a decision on which company would build the stadium has been made, but the announcement would not be made until a later date.
Host cities that did not respond to Moneyweb's inquiries include Johannesburg, Tshwane, Nelson Mandela metro, Rustenberg and Bombela.
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