15 May 2007
Media Briefing: Deputy Minister of Finance, Jabu Moleketi
The government has today reaffirmed its state of readiness and commitment to host the 2010 FIFA World Cup. ‘All the twenty four 2010 FIFA World Cup projects are running like a well oiled machine and the first ever African World Cup will be a success’ said the Deputy Minister of Finance during a media briefing held in Pretoria today.
The Deputy Minister further said that ‘Pessimists will have to eat their words at the end of day come 2009 when we host a successful Confederations Cup’.
The government preparations for the 2010 FIFA World Cup are on schedule, including stadiums, transport and other infrastructure projects. Government will deliver a world class tournament, but as importantly will ensure that the World Cup assists in the achievement of our developmental goals and leaves a lasting legacy.
See the powerpoint presentation that accompanied this briefing
The Government’s has set aside R17,4-billion direct investment in the World Cup which is integrated into a much larger spending programme between 2006 and 2010. During this period, the government will be investing more than R400 billion in the country's infrastructure.
South Africa will take advantage of the world cup opportunity to attract inward investment (construction and manufacturing and other sectors); and to stimulate new investment in stadiums, transport, airports, communications, accommodation, broadcast and information technology, financial services etc. The projects will also stimulate skills development and create jobs; develop football and its commercial base; and upgrade facilities to ensure South Africa is a competitive destination for major events.
Government will deliver according the following deadlines:
- December 2006: Stadium and supporting infrastructure planning phase (Complete)
- January 2007: New stadium and supporting infrastructure construction commences (Work in Progress)
- September 2008: FIFA Inspection Team for Readiness
- December 2008-March 2009: Construction work on selected stadiums complete (Confederations Cup Stadiums)
- April-June 2009: Preparation for Confederations Cup
- December 2009: Stadium and supporting infrastructure complete
- June 2010: World Cup Competition
The match planning has been completed, in accordance with FIFA regulations. This is a very important milestone as with this schedule the South African security services will be able to further detail their security plan. It also enables detailed planning of transport routes and accommodation.
The International Broadcast Centre is a most important facility which will ensure TV coverage across the globe and will cater for more than 2000 journalists. Cape Town, Johannesburg and Durban are bidding for the centre; only two cities remain as contenders and the announcement will be made in the coming weeks.
Preparations for the Preliminary Draw on 7 November are far advanced and will be hosted by eThekwini which is being given all the necessary support to make sure South Africa stages a spectacular event which showcases our readiness and country to the world.
Construction of all stadiums is within timelines. R600 million has already been spent in 2006/2007 financial year. An indication of the momentum in construction is that Treasury will have to bring forward 1.9 billion in October 2007 – this is a demonstration of capacity to deliver on time or ahead of schedule. All stadium facilitates will be ready by October 2009 to allow for the identification and allocation of seats and issuing of tickets.
In regard to concern about constraints in the local supply of raw materials, the fact that sectors such as cement production are operating at almost full capacity is a normal and positive indicator of growth – it always takes some time for sectors to catch up to the pace of growth. In the short term there will be an impact on the balance of payments, as sectors have to import supplies. But the short term import of capital goods to expand the economy is a positive phenomenon.
The R9.038 billion investment in transport projects will accelerate the delivery of an efficient, sustainable and affordable transport system and will be a key area in which the world cup leaves a legacy.
In addition to funding on stadiums and transport, there are funding allocations for delivery of government guarantees and programmes in the following areas:
- R 666 million for safety and security
- Emergency medical services
- R 2.5 billion for ICT
- Ports of Entry
- Air (ICT): R 71 million
- Land (physical and ICT infrastructure): R 1.5 billion
- Sea: R 1.5 million
The world cup is also about providing a stage to show the very best of the African continent, and to build pride and unity. Government has programmes and funding for:
- R 25 million for training of volunteers – which will build skills in the long term.
- R 17 million for community mobilisation.
- R 337 million for legacy projects.
- R 150 million for arts and culture related projects.
Africa’s time has come – South Africa is ready!