INVESTEC 2010 OFFER CLEARS THE WAY FOR STADIUM BUDGET

The multi-party government of the City of Cape Town is pleased to announce that the impasse on the capital funding of the stadium has been resolved. We are now in a position to ask full Council to pass the budget on the basis of the assured funding sources, so that we can sign contracts with the preferred bidding consortium and begin building on the Greenpoint site without delay.

The resolution of the impasse has been secured through an offer by Investec to guarantee the City a payment of R185 million after the World Cup for an operating lease on the stadium ON CONDITION that the stadium’s post-2010 operating lease is put out to open public tender as required by the Municipal Finance Management Act. This open tender process will enable all future potential operators of the stadium to tender, and ensures that Investec has no inside track in the bidding process. This process will be open to public scrutiny, as all tender processes are within the City of Cape Town, to ensure that due process is followed.

Investec’s immediate offer merely guarantees the City a minimum safety net, in the amount of R185-million, to enable us to advance the bridging finance required to make up the budget shortfall that was preventing us from passing the budget. Both Investec and the City anticipate that the offer of R185-million should be exceeded by other bidders during an open bid process, which will result in the City accepting the most favourable offer. In this case, Investec’s offer will be superseded and Investec will have no prior or preferential claim.

We are extremely grateful to Investec for this gesture that will enable Cape Town to participate in the 2010 Soccer World Cup in the way envisaged by FIFA. We look forward to co-operating with FIFA, both internationally and locally, and with the National and Provincial Governments to ensure that the 2010 Soccer World Cup is a great success, for South Africa in general and for Cape Town in particular.