DEPARTMENT OF SPORT AND RECREATION SOUTH AFRICA: PRESENTATION TO THE PORTFOLIO COMMITTEE ON FINANCE ON THE 2010 FIFA WORLD CUP STADIUMS DEVELOPMENT GRANT

 

INTRODUCTION

 

         Thank you for the opportunity to make this presentation to the Portfolio Committee on Finance

 

         Brief of the Department

 

         2010 FIFA World Cup

 

2010 FIFA WORLD CUP

 

Municipality

Allocation 2007/08

Transferred YTD

Withdrawal Request October 07

Withdrawal Request January 08

Proposed Allocation 2007/08

Difference 2007/08

 

(Rí000)

(Rí000)

(Rí000)

(Rí000)

(Rí000)

(Rí000)

Nelson Mandela

434,715

0

76,926

475,970

552,896

118,181

Mangaung

105,663

0

11 ,958

98,255

110,213

4,550

Ellis Park

146,158

0

22,356

99,788

122,144

-24,014

Soccer City

339,499

374,959

400,188

147,518

922,665

583,165

City of Tshwane

52,778

0

0

52,778

52,778

0

eThekwini

391,905

391,905

362,241

57,183

811,329

419,424

Polokwane

333,321

140,874

92,607

380,118

613,599

280,279

Mbombela

389,644

151,729

14,142

304,044

469,915

80,272

Rustenburg

72,215

0

0

72,214

72,214

0

City of Cape Town

434,104

83,200

0

794,047

877,248

443,144

 

2,700,000

1,142,667

980,417

2,481,915

4,605,000

1,905,000


 

         Why the adjustment?

 

-         Differences between planning phase and construction phase.

 

          Construction programmes of host cities took off faster than anticipated.

 

          "Higher burn rate" leading to actual cash-flows demands being higher at project conception

 

         Key procurement decisions made and to tie suppliers to particular prices.

 

         Material availability - endeavour to complete construction ahead of schedule, wherever possible.

 

         Limit cost escalations.

 

         Deal with lead times.

 

THANK YOU