Thursday, October 26, 2006

We Spending How Much????

The South African government plans to spend 15 billion rands (C$2.2 billion) on new stadiums and related infrastructure for the 2010 World Cup.

Finance Minister Trevor Manuel told parliament Wednesday that preparations for the tournament - the first to be held in Africa - were one of the country's top spending priorities for the next three years.

"The hosting of the 2010 FIFA World Cup provides South Africa and the region with a one-in-a-generation opportunity to showcase our land and our hospitality in a sporting festival that knows no bounds," Manuel said while presenting his medium term budget to 2009-10.

"Hosting this event will require the effort of all South Africans," Manuel told parliament, with a delegation from FIFA in the gallery.

Hoping to ease fears by foreign tourists about the rampant rate of violent crime and theft, Manuel promised to boost spending on the criminal justice system and recruit an additional 10,000 police officers by 2010 to increase their physical presence on the streets.




The government hopes the World Cup will leave a lasting legacy for South Africa by pumping billions into the economy and create hundreds of thousands of desperately needed new jobs, and in particular jump start its struggling transport system.

The transport ministry has started upgrading the nation's airports _ including construction of a new one in the coastal city of Durban _ to cope with the anticipated 450,000 foreign tourists expected to flood into the country.

It is spending 5 billion rands (C$745 million) to improve the railway network and nearly 8 billion rands (C$1.2 billion) to modernize the fleet of aging and often dangerous minibus taxis which form the backbone of the transport system.

Manuel said of the additional 15 billion rand spending on the World Cup, 8.4 billion rands (C$1.3 billion) was to build or upgrade 10 stadiums and the rest for infrastructure around the stadiums.

The budget announcement coincided with a two-day seminar organized by FIFA for local organizers, business representatives and corporate sponsors.

"This is a good day for South Africa and a good day for the 2010 World Cup," FIFA spokesman Markus Siegler said.

Danny Jordaan, the head of the organizing committee, said the 8.4 billion rands pledged for stadiums exceeded budget estimates of 8.3 billion rands.

"All of the funding has been secured," Jordaan said.

Manuel's announcement on additional spending had been eagerly awaited by cities hosting matches. Cape Town, in particular, has been reluctant to press ahead with the new 68,000-seat stadium before getting central government commitment on funding.

In his budget announcement, Manuel did not break down the allocation between cities.

Johannesburg representative Sibongile Mazibuko said that cities would start stadium construction as planned in January.

Johannesburg is set to host the opening match and the final, while Cape Town and Durban are due to host semifinal matches. The other venues are Port Elizabeth, Pretoria, Nelspruit, Bloemfontein, Polokwane and Rustenberg.

Jordaan dismissed concerns that South Africa was behind schedule and wouldn't be ready on time.

He said that South Africa, which was kicked out of FIFA in 1976 because of its apartheid policies and its separate soccer associations for different races, had met FIFA demands for readmission in 1992 by scrapping racial segregation laws and ending decades of injustice.

That, he said, was a far tougher task than organizing the World Cup.

"If we can liberate our country, why can't we build our stadiums?" Jordaan said.

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