November 18 2008

Durban: 2010 Preparation Update:

Ms. Julie-May EllingsonHead: Strategic Projects and 2010 Programme

Dr. Michael Sutcliffe, City Manager eThekwini Municipality Challenges:

PRESENTATION TO PARLIAMENTARYPORTFOLIO COMMITTEE

Outline of presentation

• Overview of 2010 projects• Overview of progress to date• Questions

One of 9 Host cities in South Africa6 Matches + Semi Final (5 first round, 1 second round and a Semi Final)

2010 FIFA FOOTBALL WORLD CUP

Moses Mabhida Stadium

• World class 70 000 Seater World Class stadium to host semi-final.

• Capable of being expanded to 85 000 seats to accommodate Olympics

• Multifunctional without compromising activity of football.

• Financially viable: maximising potential income streams while minimising financial drain on city

• Best concept at the best price

Retail – 7200m2

Variety of retail spaces

- Coffee shops

- Convenience store

- Tourism office

Cable Car & Adventure Walk

Cable Car:− Northern Arch footing− 25 people − Viewing Platform− 106m in height

Adventure Walk− Southern Arch footing− Guided adventure walk up

550 steps

Hospitality: Business Club

Seats and space

MOSES MABHIDA STADIUM

Construction programme

• Demolition (July 06)• Earthworks (Aug- Sept 06)• Piling (Oct – Dec 06)• Site handover End January 2007 to PBC Group 5/

WBHO/Pandev Consortium• Completion date October 2009

Kings Park Soccer Stadium – June 2006

Progress: Demolition

Site clearance - August 2006

Site Hand Over – January 07

1 Year Later January 2008

Sept 08

September 2008

Beginning November 2008

STADIUM PROGRESS

Design, Procurement and construction Progress Stadium− Design completed to 92%− Procurement completed to 79% (number of packages) and 92%

(budget)− Building works completed to 65%− External Services completed to 80%− Internal Services completed 36%− Finishes/fit out completed

to 25%

Progress to date

• To date, a total of approximately 193 297 tons of concrete

• 8 872 tons of steel have been used on the project

• Total man hours worked to date – 5,924,958

• Total no of notional jobs created to date – 12 993

• Total number of workers on site : 2 716

• Total number of women: 129

Key Milestones Stadium• Start installation of steel columns and compression ring – 22 April 2008• Completion of arch - Feb/March 2009• Completion of roof membrane – May/June 2009• Completion of pitch – June/July 2009 • Completion of façade – July 2009• Completion of assembly of all spectator seats – July/Aug 2009• Final completion stadium - 31 October 2009

Key Milestones Precinct • Practical completion Imbizo Place 31/10/2009• Practical completion People’s Park/Southern entrance 31/10/2009

Confirmation of Handover Date to FIFA• Stadium will be handed over on 1st February 2010 (non exclusive use)• Stadium will be handed over on 1st June 2010 (exclusive use)

Stadium MilestonesStadium Milestones

Procurement statistics

Principal Building ContractThe entire project was awarded to the

Principal Building Contractor (PBC), a consortium of Group 5, WBHO and Pandev, which collectively has a 39% BEE ownership.

The PBC is contractually committed to spending R140m employing BEE empowered enterprises as domestic subcontractors and suppliers. and to date has already awarded contracts worth approximately R155m to BEE empowered enterprises.

The PBC has utilised the services of approximately 120 different companies as domestic subcontractors, labour only contractors and suppliers. Of these approximately 75 are BEE empowered (>51% BEE owned) and 13 of them have Women Equity Ownership >51%

Selected Subcontract statisticsTo date, excluding the Roof and Arch subcontract, 39 selected and

direct subcontracts have also been awarded. Of these 16 have been awarded to BEE empowered enterprises (>51% BEE owned) and a further 4 have been awarded to BEE influenced enterprises (>26% BEE owned)

Of these selected subcontracts, the tenderers have collectively committed themselves to procuring approximately R130m from other BEE empowered enterprises (>51% BEE owned). They are also contractually obligated to procure a further R2m from very small and micro enterprises that are currently listed on the City’s SMME procurement database.

Roof and Arch SubcontractThe roof subcontractor has also commited to subcontracting

approximately R50m to BEE empowered and BEE influenced enterprises. The R50m is based on the value of the work awarded to BEE empowered enterprises + 50% of the value of the work awardedto BEE influenced enterprises.

Procurement statistics

STADIUM PROGRESS

Stadium operator• Tender documentation is currently

being developed, together with a detailed business case for the stadium operation.

• Operator tender due to be released in January 2009

• Commencement date and Handover roll out dates TBD

• Target is to have fully operational stadium by end October 2009

Funding Issues Unfunded budgeted items R674m

Reported on a monthly basis

Escalation

Exchange Rate fluctuations

Import duties & taxes

Over heated construction market

Additional FIFA 2010 requirements

Contractor claims (delays / changes to requirements)

Stadium Precinct

Overlay → budget implications

Lack of transparency in budget allocations of concern

STADIUM MATTERS

ISAIAH NTSHANGASE Rd UPGRADEISAIAH NTSHANGASE Rd UPGRADE

IMBIZO PLACE IMBIZO PLACE

PEOPLE’S PARKPEOPLE’S PARK

MY AVENUE UPGRADEMY AVENUE UPGRADE

BEACH ACCESSBEACH ACCESS

Transport

• King Shaka Airport• Inner City Distribution System (People Mover)• Warwick Junction Infrastructure Improvements• Western Freeway Rehabilitation and Upgrade Nkosi

Albert Luthuli Public Transport Lanes (M4)• Public Transport Call Centre• Intelligent Transport Systems (ITS) Traffic

Management• Kings Park Railway Station• Non Motorised Transport

KING SHAKA AIRPORT

Transport

Warwick Junction Infrastructure

• Gateway into city• Highest number of

number of road deaths/ accidents

• Opportunity to significantly improve face of public transport

• Multi-modal transport and retail hub

Diverting Warwick traffic

• Inbound flyover awarded• Start Jan 2008• Proceeding well • On track for completion July 2009

(Dec 2009)• Outbound : short list of contractors

to Bid Adjudication• On track to be on site in Jan/Feb 09 • Complete May 2010

Warwick Junction – phase 1 construction of inbound flyover

GROUND FLOOR

Warwick Redevelopment

WARWICK MALL

MARKET STREET

MICRO TRADE EDGE

WARWICK MALL

PEOPLE MOVERSYSTEM

WARWICK SQUARE

FUTURE EXTENSION TO DEVELOPMENT

OPPORTUNITY FOR 3 TO 4 STOREY BUILDING

WARWICK AVENUEMICRO TRADE EDGE

BRIDGE TO DUT CAMPUS TO FACILITATE PARKING

PROPOSED BUILDING TO ACTIVATE END OF WEST STREET + WARWICK AVENUE

WEST STRE

ET

URBAN DEVICE

UPGRADE OF EXISTINGHISTORICAL BLDG WITH MICRO TRADE

WARWICK SQUARE Approx. 100m x 70m WARWICK MALL PRECINCT CONCEPT

INNER CITY DISTRIBUTION SYSTEM

Commercial Rd

Deleted

WestSmith

Victoria Embankment Point Rd

2

3

Old Fort Rd

Playfair Rd

Commercial RdOrdnanceRd

5

8

7

1

ShepstoneParade

Marine

13

12

32

21

6

10

4 Not included6 Deleted

Gillespie

Buses/hourRoute No.321

EE--W DISTRIBUTION SERVICE 2010W DISTRIBUTION SERVICE 2010ALL BUS ALL BUS ‘‘SHUTTLE SERVICESHUTTLE SERVICE’’

912

1012

7A

2A

Bus Fleet 73Loading platforms 91Passenger/hour 7500

Route extensions for SWC service

PHASES A + B

• Next Phase of People Mover System• Backbone of Inner city public transport• Serve both commuter & tourist• Special services over 2010• RFP issued: tenders being adjudicated • Buses will be delivered from middle of next year • Specifications as per People Mover (larger)• Infrastructure ready to go out to tender• Negotiations with Taxi industry proceeding

Public Transport Lanes

Western Freeway:• Operating • Electronic enforcement• Taxi driver training on use of

lane

Albert Luthuli: • ROD issued• Awarded• On site this week• Completion end 2009

Intelligent Information System

• Automated by end of year• 24 hr control centre• Operational by april 09• Touch screens ordered• Upload by April 09• Full functioning by June 09 in key

locations• Sanra fibre along national

freeways

DriveSlowly

2010 training venues

PRINCESS MAGOGO STADIUM IN KWAMASHU

KING ZWELITHINI STADIUM IN UMLAZISUGAR RAY XULU STADIUM

Training venues

3 venues are being upgraded, − Work includes increasing seating capacity, improving safety

and comfort of spectators; improved ablutions, Improved lighting and safety equipment

− Additional work being undertaken to create sports hubs.− Progress:

• Professional teams appointed, • Tender closed on 14 November• Being adjudicated• Award end of year• On site Jan 2009.

City OverviewCity Overview

New King Shaka Airport – currently under construction

Durban International Airport

VSTS : Princess Magogo Stadium KwaMashu

VSTS : Sugar Ray Xulu Stadium Clermont

VSTS : King Zwelethini Stadium: Umlazi

Moses Mabhida Stadium

2010 Soccer World Cup Greening Programme

Aim: To host a climate neutral event in Durban−Objective 1: Minimise energy usage and carbon emissions−Objective 2: Offset / sequester unavoidable carbon emissions

PROGRAMMES

Energy efficient Stadium constructed (Moses Mabhida & Training Venues)

Energy efficiency adopted as a principle in all 2010 infrastructure projects

Development of guidelines (energy efficiency, waste management, landscaping)

Carbon Sequestration Project

Umgeni Eco-resource Hub Green goal−Development of a boardwalk tourism attraction at Umgeni River mouth

Sustainable transportation strategy (for reduced transport-related carbon emissions)

Fan Parks & Public Viewing

• Unique experience

• Central Beachfront

• Flexible space to accommodate range of games

• Guidelines not completed

• Rules iro Public Viewing needed

Fan Parks

Infrastructure & City Services

• Bulk infrastructure projects in stadium precinct, beachfront for fan park and training stadia

• Public toilet audit and upgrade and developing operational strategy

• Waste management strategy being developed• Deployment plan being developed for city services

− Lights, water, power, traffic light etc reaction teams− Bringing forward spend on equipment: eg vehicles,

equipment, developing spares stock etc− Services plans

City Beautification

• Upgrade of key nodes within the city− Nodes identified− Detailed design currently underway

• Identification and upgrade of gateways into the city− 4 gateways identified− Design proposals pending

• Upgrade/ Refurb of vehicular routes− Key routes identified− Palette of interventions proposed

• Upgrade/ Refurb of pedestrian pathways around stadium/ CBD and fan park

• Beach upgrades

Safety, Security, Health and Disaster Management• Policing (Metro Police)

− Recruitment of new policemen− Deployment plan (including developing specialist

areas)− Training− Increased capital equipment (vehicles, motorcycles,

horses, uniforms and other equipment)• Fire and Disaster Management

− Recruitment of contract staff to free up existing staff− Deployment plan to ensure that staff are stationed

and equipped at key areas− Development of operational plans for mass gathering

areas− Training in CBRNE− Procurement of new equipment including CBRNE

unit, lighting, fire fighting and telecomms equipment− Upgrade and new technology for Disaster

Management Centre

Safety, Security, Health and Disaster Management

• Health− Upgrade of Food-stuff lab− Staffing and deployment plan for key

venues− Budget for increased lab equipment

and staffing− Working together with KZN Province to

ensure hospitals are equipped and capable to deal with 2010 crowds

• Beach Safety− Increased staffing and deployment plan

for 24/7 requirements.− New equipment (rescue equipment,

boats, signage, vehicles and communications equipment)

• Volunteer programme (City NOT FIFA volunteers)− Plan developed around key work areas and deployment zones− Looking into training requirements and development of training

programmes

• Economic Opportunities − Liaison with business around opportunities− Developing workshop programme for smme’s− Capital upgrade on tourism routes

MARKETING & COMMUNICATION

• Marketing and Communications Agency appointed• Strategy complete and awaiting council approval• Press releases on a regular basis• Monthly Media Day• On-going interactions with Media (radio, newspaper & TV interviews;

photographs etc)• HC Poster design complete• Events planned for 2009:

− 2010 Communication Strategy Launch− Stadium Arch completion event− Roof and other milestones− Training venues hand over

• Promotional material (both city and 2010) is developed and updated on a regular basis

• 2010 Website currently being updated

INFORMATION TECHNOLOGY

Stadium and Precinct • Legacy issues – VOC and other requirements finalised and being

implemented• Remain concerned about TELKOM fibre rollout which is unnecessary

and ownership of fibre post-2010 should this be implemented• Overlay:

− Currently trying to get detailed requirements from FIFA/LOC and dependent on roles and responsibilities

City Requirements:• Roll out of CCTV• Transport projects (VMS, ITS) currently being implemented• Information kiosks (tourism, traffic and city information)• Disaster Management Centre – comms, CCTV, ESS• Mapping the location of wireless hotspots• Procuring Platform ICT requirements

Tourism and Accommodation

• Tourism product development : Whose coming/what do they want to do

• Accredited Accommodation (11 New hotels)

• Tourist Information Centers / Marketing

− Working Framework Plan for central beachfront completed− Framework plan for upgrade of other mass tourism nodes being

developed (eg. Umgababa, Amanzimtoti, Umhlanga)− Detailed design of nods underway− EIAs underway− Tenders and construction first quarter 2009

Redevelopment of the central beachfront

LEGAL

• By-Laws advertised and public comment received.• Assessing public comment and will make

amendments wrt these• Discussion on 2010 Courts being undertaken with

Province• Require information on RPP training for Metro Police

Roles & Responsibilities• Less than 570 days to go and still determining who is

responsible for what• Tendency to shift increasing responsibilities & costs

onto HC

Overlay • This is what is required to put on the event• It is the responsibility of the LOC and we still haven’t

finalised the matter.• There is a process underway, but remains a

significant risk

ChallengesChallenges

National Government:• Government Guarantees – very limited interaction with

HC in respect of allocation of these funds• Transparency and equity in funding formula• Funding shortfalls compared with agreements• LOC and National Treasury budget alignment required

Changes in FIFA specifications• Cost implications• Procurement issues

Challenges Challenges

Additional concerns

• Finalisation of contributions from LOC, National Government

• Number of games• Finalising FIFA & other events • Political issues: elections and labour matters

Implications

• Latest business plan shows significant shortfalls requiring LOC/Treasury & HC to finalise

• City has already contributed R1.5 bn• Operating costs likely to be around R550 million

against which DORA allocation only R85 million • No further borrowings could be sustained. For

example, a further R500 million loan over 10 years increases rates by 8% p.a. National legislation limits the extent to which the Municipality can increase their rates.

Concluding comments

• 2010 FIFA World Cup is the single largest event we have ever had. It requires us all to get focussed.

• As a country we have agreed with FIFA what must be done. We must therefore find ways to deliver on our promise to host the best FIFA World Cup ever in 2010.

• Host Cities need support in their quest to get fairness and transparency and the provision of resources timeously.

Thank You!

Questions?