Cape Town passes stadium budget

Cape Town yesterday approved a R2,9billion budget for the 2010 Soccer World Cup stadium at Green Point.

Cape Town yesterday approved a R2,9billion budget for the 2010 Soccer World Cup stadium at Green Point.

The approval ends the uncertainty that has surrounded funding of the 68000-seat structure.

It also clears the way for the awarding of the tender to the preferred bidder, a consortium of Murray & Roberts and WBHO.

Mayor Helen Zille had been contemplating canning the project until international banking group Investec this week promised to guarantee a R185million budget shortfall.

The guarantee is set against income from a lease on the stadium after 2010, which Zille said would, despite the guarantee, go out for public tender.

The ANC opposition to the DA-led multiparty city government at first expressed concern about the Investec guarantee and demanded to see the agreement.

But in the end the ANC voted to support the budget.

Pieter Cronje, the city's 2010 spokesman, said the council's bid adjudication committee was expected to award the tender on Monday.

The city council still wants a central government guarantee to cover cost increases above the 10percent the city has allowed for.

Of the total stadium cost of R2,9billion, R1,9billion will come from the central government, R500million plus the Investec-guaranteed R185million from the city, and R212million from the Western Cape government. - Sapa

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