The bidding process to find a long-term operator for the Green Point stadium is to start afresh, after the City of Cape Town’s Bid Adjudication Committee found that the three tenders it had received did not comply with all the requirements in the bid document.

The process will however not affect construction of the stadium, or the City’s 2010 preparations, as the operator will only take over the lease of the stadium after the 2010 FIFA World Cup.

A request for proposals will now be re-advertised, and the three bidders will be able to reapply. The three bidders were Facilities Management Africa, Green Point Western Cape Consortium, and a consortium consisting of Investec, Venfin, SAIL and the Western Province Rugby Football Union.

“The City is confident that it will receive acceptable proposals when re-advertised, whereupon these will be duly considered. The second round will not delay the project in any way,” said the City’s 2010 spokesperson Pieter Cronje. “The first round provided valuable experience which will help with the future process,” he added.

The successful bidder will have a 30-year lease of the stadium following the 2010 FIFA World Cup, and will also be responsible for the upkeep of the Green Point Common. After the tournament, the top tier of seating will be removed, making it a 55 000-seat stadium, and freeing up space for commercial activity, such as executive suites and other uses. This is why the tender is being advertised well ahead of the completion of the stadium, so that the winning bidder can have a say in some of the finishing design touches to the upper tier.

According to Mike Marsden, Executive Director, Service Delivery Integration for the City of Cape Town, the decision to reject the three bids was not taken lightly, and was only taken after careful analysis and legal advice. “This is a major contract for a R3-billion asset and we must make absolutely certain that we find the right operator with the best long-term management plan, track record and success recipe.

The committee studied factors such as the bidders’ event programmes, operational management plan, environmental management system, proposed processes on how to involve the community, and compliance with the Record of Decision on the environmental conditions for the stadium.The bidders’ track records, company profiles, expertise, business plan, financial contributions to the stadium and surrounding sport and recreation precinct, as well as money the City would receive in terms of rental share of projected revenue, were also studied closely.

Marsden said that after looking into the above factors, and taking legal advice, the Bid Evaluation Committee decided the tender could not be awarded on the basis of the current submissions. “We have been encouraged by some elements of the bids. The prime location of the stadium, walking distance to key support, business, transport and tourism services, the Central Business District, and the Victoria and Alfred Waterfront has a clear attraction for would-be operators and investors,” he added.