Portfolio Committee on Sport & Recreation23rd January 2007

Presentation by Ms Julie-May Ellingson (Head: Strategic Projects Unit &

2010 Programme)

Presentation outline• Background

– 2010 & Beyond Strategy– Kings Park Sporting Precinct

• Overview and progress on Durban’s 2010 plans

• Business case • Stadium Precinct • Transport • Practice Venues• Other • Stadium• Way Forward

2010 & Beyond Strategy

AFRICA’S PREMIER SPORTING AND

TOURISM DESTINATION

2010 & Beyond Strategy• Putting Durban on the map• Scale up infrastructure in the city• Attract investment• Create jobs• Develop sporting infrastructure• Urban renewal• Improve tourism products

Kings Park Sporting Precinct – the heart of the 2010 & Beyond Programme

Cricket

Equestrian

Gym

FootballSwimming

AthleticsRugby

Motor racing

Beach Soccer

Golf

Cycling

Archery

Business Plan • Holistic approach to event• Host city and Stadium Agreements set out

obligations• Not just about the stadium• Over 50 projects need to be implemented in

order to deliver on obligations• Key criterion for selection : long term

benefits• Submitted in August 2006• To date no response forthcoming with the

exception of engagements around the stadium and transport

Constraints & ImperativesFIFA & EventRequirements

Compliant StadiumPractice Fields

HotelsICT

Safety & Security

FIFA & EventRequirements

Compliant StadiumPractice Fields

HotelsICT

Safety & Security

Host City AgreementFan parks

Decoration campaignHost city events

LOC officesTraining groundsBy-law changes

Environmental protectionCommercial display areas

Advertising spaceRights Protection Programme

Restraints on surrounding businessesCity Beautification

Host City AgreementFan parks

Decoration campaignHost city events

LOC officesTraining groundsBy-law changes

Environmental protectionCommercial display areas

Advertising spaceRights Protection Programme

Restraints on surrounding businessesCity Beautification

Stadium Use AgreementCompliance with FIFA marketing requirements

HospitalitySpace requirements

Furniture, infrastructureExclusion zone

Power & Backup powerNaming rights & Clean stadium requirements

Repairs afterwards

Stadium Use AgreementCompliance with FIFA marketing requirements

HospitalitySpace requirements

Furniture, infrastructureExclusion zone

Power & Backup powerNaming rights & Clean stadium requirements

Repairs afterwards

Safety & Security Requirements

Safety & Security at recreational events Bill

Eg: Municipal Disaster ManagementCentre

Safety & Security Requirements

Safety & Security at recreational events Bill

Eg: Municipal Disaster ManagementCentre

TIMEConstraints

TIMEConstraints

Skills shortageInflation

Building Costs

Skills shortageInflation

Building Costs

2010 & BeyondStrategy

LegacyEconomic Development

Social BenefitSustainability

2010 & BeyondStrategy

LegacyEconomic Development

Social BenefitSustainability

2010 Legislation

Special Measures Acts= Control over advertising

2010 Legislation

Special Measures Acts= Control over advertising

Stadium Planning& Design AgreementStadium Planning

& Design AgreementStadium

DevelopmentAgreement

Stadium Development

Agreement

City PromotionCity Promotion CommunicationCommunication City Beautification

City Beautification

TourismPromotionTourism

PromotionObtaining maximum benefit from 2010

Post 2010 clean up

Post 2010 clean up

Opportunity cost Other eventsDisplacement

Opportunity cost Other eventsDisplacement

Infrastructure

Backup power

Infrastructure

Backup power

TransportTransport

Event Inevitable

Skills Development

Skills Development

Green Goal

Green Goal

Progress: PrecinctPeople’s Park and underground Parking

• Finalising clearance of railway sidings• Land will be required as part of

building site – this affects timing• Awaiting clarity on budget allocation

Linkage to Beach • Concept plans completed • Land survey required• Detailed planning to be undertaken• Awaiting clarity on budget allocation

Imbizo Place, retail facilities and semi-pedestrianisationof Walter Gilbert Rd

• Concept plans completed• Timing of development dependent on

stadium• Detailed planning underway

Multi-media sports museum • Museum concept planning completed• Detailed planning to be undertaken• Awaiting clarity on budget

Stadium Precinct

People’s Park & Heroes Walk withUnderground parking

Semi-pedestrianisationof Walter Gilbert Road

Pedestrianisedlink to beach

New Kings Park Railway Station

Imbizo Place, retail &

Multi-media Sports

MuseumRoad Access points

Sports precinct service road

Progress to date : TransportOriginal NDOT : original request R1.4bn; Revised R970m

Warwick Junction • Preliminary designs completed• Detailed design work underway

People Mover • Currently developing a bus service, not tram system due to budgetary constraints.

• Flexibility = key element, to allow seamless transition from bus to tram if budget becomes available

M4 (Public Transport Lane)

• Detailed planning underway• Traffic modelling underway• Construction to start 2008

Kings Park Railway station

• LED by SARCC• Planning underway• Construction to commence 2008

Transport

Walkways and cycle paths

Sports Precinct Service Road

Underground Parking

Resurfacing NMR Road

Access to stadium from road network

Walkways and cycle paths

Park and Ride

Park and Ride

Western Freeway upgrade

Warwick Junction

People Mover

M4 Public transport lanes

Possible 2nd Parking site

Pedestrianisation of Walter Gilbert Road

Pedestrian linkage to beach

Kings Park Railway station

Kings Park Railway Station

Rail network

Transport: Interim People Mover

• Unique, highly distinguishable "bus" with a capacity of 15 persons seated & 18 standing

• Wheelchair & Pram access• Emphasis on safety &

security - CCTV, Wardens, • High quality stops with city

information• Two key routes

– North-South Linking Ushaka & Sun Coast

– East-West Link back into City (Vic Market)

• 15 Minute intervals• 06h00 to 23h00

Transport

Progress to date on additional 2010 projectsICT • FIFA requirements for stadium

being developed as part of stadium development

• Fibre network rollout in inner city complete

• Wireless WAN rollout – 85% complete

• Phase II – Carrier Class Active Layer to be developed in 07/08 FY

Tourism • 10 new hotels currently being developed in Durban

• Workshops held with involved parties

• Constraints around grading being addressed.

Progress to date on additional 2010 projectsSafety & Security • Interdisciplinary committee

established

Training Venues • Audit of requirements in each proposed area currently being undertaken

• Awaiting FIFA’s guidelines• Once received, detailed planning to

commence• Timing of work will have significant

impact on local football

Public Viewing • Traffic Impact Assessment and service assessment is being prepared to determine best location

• Beach Venue is preferred, but subject to above assessment.

New Durban StadiumWorld Class 70 000 seater stadium

Multi-functional, without compromising football

Financially viable - design maximises income streams

Could be expanded to accommodate future Olympics

Progress: Stadium Design Team2006

Feb

Mar

Apr

May

June

EOI: advertised internationally 19 Feb 06

Evaluation 30 Mar 06Adjudication & shortlisting of 6 consortia 3 April 06

EOI closed 17 Mar 06

Designs and Tenders developed by 6 consortia 3 April to 29 May 06

Design & Tender evaluation 29 May to 12 June 06

Adjudication 12 June 06

Award to Ibhola Lethu Consortium 12 June 06

Pha

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Progress: Stadium Design3 main issues:1. Cost constraints

– Value engineered to fine detail– Efficient structure

2. Timing constraints3. Sustainability

– Multi-functional– Increase long term usage– Lower running costs.

Stadium design: Response to Cost Constraints• Simple elegant structure• Compression ring and arch structure are an

efficient and effective way of dealing with the roofing of large structures.

• Designers – bridge designers – experienced, efficient.

• 4 gantry’s (btw bowl edge and roof) not 12• Professional team’s fees – 13% (national

average – 16%)• Cost per seat is in the lower range of

international norms

Stadium Design: Responses to timing constraints• Well worked out detail• Split into separate components, brought

forward as many elements as possible.• Separate:

– Bowl– Precast seating– Roofing and Arch –

• Can begin independently• Arch begins from each end and centre lifted into place• Roof laid out on ground and lifted into place

Stadium Design: Sustainability• Multi-functionality

– Range of uses within the bowl:• Athletics• Football• Rugby• Concerts• Parades

– Within structure• Maximum VIP seats• A range of semi-VIP to VVIP arrangements• A range of possible usages of space:

– Offices – 4000m2 (with separate access)– Restaurants – on level 6 - one or two, with sea and city

views– Multi-media museum– Cable car

Sustainability cont..• The stadium is the centre of a sporting

precinct which will be well used on a daily basis, by citizens of Durban, tourists and visiting sports people.– Numerous sporting facilities (Swimming, Gym,

Cycling, Athletics, Equestrian, Golf, Archery)– Open space– Easy linkages to beach– Retail facilities– Restaurants– Hub of transport facilities – people mover, pool of

parking, railway station.

2006M

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Public Tender: advertised locally on 19th May 06

Award made to Gralio 26th June 06

Work began on site 27th June 06

Evaluation & Adjudication 26th June 06

Demolition 1

Demolition 3

Demolition completeOct

Demolition 2

Progress: Demolition

Progress: Stadium Piling & Diaphragm Walling

Aug

2006Piling Public Tender: advertised nationally 6 Aug 06

Piling work will be completed end Feb 07

Sep

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2007

Piling Bid Evaluation 19 Sept 06Piling Bid Adjudication 20 Sept 06Piling Award made to AfripilePiling work begins

Diaphram wall tenders adjudicated and awarded to Frankipile

Diaphram wall contract advertised

Diaphram wall work begins

Diaphram wall complete (May 07)

Progress: Principle Building ContractorTender process

– Two stage process: pre-qualification (3 Week) and tender (6 week process)– Entire process including pre-qual and tender = 14 weeks.– Call for Pre-qualification issued: 10 Sept 06 and closed: 2 October 06– Key criteria:

• CIDB Registration• Level 9GB Contractor

– Submissions made by 5 Consortia, 4 shortlisted. – Tender document issued on: 3 November 2006 to 4 pre-qualified tenderers:

• Mavundla CMC Joint Venture (SA & Italian)• Group 5 WBHO Joint Venture• Laduma Joint Venture (Covec {Chinese} & Bouygues {French})• Grinaker LTA

– Tender closed on: 6 December 2006– Tenders submitted by:

• Mavundla CMC Joint Venture• Group 5 WBHO Joint Venture• Laduma Joint Venture

– Evaluation: 6 to 14 December 2006– Preferred bidder finalised 15 December 2006– Tender valid until: 30 January 07

Progress: Principal Building ContractorEvaluation Criteria– Construction Methodology

• Plant and equipment• Methodology• Concrete quality

– Building Programme• Understanding of complexity of the works• Due allowances for all aspects of construction

– Human Resources and Domestic Sub-contractors

• Management structure• Experience of staff• Quality of sub-contractors

• Methodology for evaluation: CIDB stardardfor Uniformity method 4: Quality

Preferred bidder: Group 5 WHBO, Pandev’s Joint Venture• Sound construction methodology• Excellent programming – ability to

deliver on time• Have the resources to ensure

completion.• Lower tender price • Higher BEE score

Estimate vs Tender Costs

Reasons for increase in tender prices

• Risk• Input costs

– Human resources (skills, unions)– Plant & Equipment Cranes (12 static & 20

mobile)– Materials (steel, cement)

• Mark up on provisional items due to intensive management

• Rates on concrete and formworkNegotiated with Preferred Bidder:

– R50m saving– R10m skills devt centre

Increase in Construction costs

Cited by Construction Industry Development Board Dec 06

Stadia cost comparisonFranklin & Andrews Benchmarking

• Costs per seat of different capacity stadia are not comparable• Using the 60 000 seat benchmark:

– ave cost of a 70 000 seater stadium = R 2,669,975,000• Using the 85 000 seat benchmark:

– ave cost of a 70 000 seater stadium = R 3,203,970,000

Seating Capacity 20,000.00 40,000.00 60,000.00 85,000.00

Average Rate/Seat (Pounds) £1,500.00 £1,800.00 £2,750.00 £3,300.00

Cost In Pounds £ 30,000,000 £ 72,000,000 £ 165,000,000 £ 280,500,000

Rand/Pound Exchange Rate R 13.87 R 13.87 R 13.87 R 13.87

Conversion of Cost In Rands R 416,100,000 R 998,640,000 R 2,288,550,000 R 3,890,535,000

cost per seat in Rands R 20,805.00 R 24,966.00 R 38,142.50 R 45,771.00

City’s funding commitment• ICT• Transport• Kings Park Precinct• Tourism• Services: Electricity• Skills devt• Operating costsTotal funding commitment approx.

R930m

WAY FORWARD

1. City involved in discussions with LOC EXCO to find resolve

2. Need to make PBC award to avoid further costs and public confusion. Accounting Officers need to be given some relief from onerous provisions such as Section 19 of the MFMA. Specifically it is requested that Treasury invoke Section 170(1) or 170(2) to approve departures from or condone actions taken to try and deal with the lack of certainty in terms of funding.

3. Relevant accounting officers of all 3 spheres of Government should urgently meet with National Treasury to finalise overall costs for 2010 FIFA World Cup and how these may be funded

4. Undertake value engineering exercise at which the following costcontainment solutions can be interrogated (i) Purchase of forward cover for foreign currency; (ii) Fixed price tenders where appropriate (These will not necessarily reduce price, but will fix the risk of inflation at time of tender); (iii) Finalise and sign off all FIFA technical and other requirements urgently; (iv) find ways to deal with steel (import-parity prices), Labour (negotiations with labour unions) and Cement (import taxes).

5. National government must develop an approach to cap requests made to the cities to provide higher levels of service than already allowed for

THANK-YOU