Progress report: 2010 FIFA World Cup Soccer Tournament

1. Progress report: 2010 FIFA World Cup Soccer Tournament Presentation: 29 May 2006 Mbombela Local Municipality By: Lawrence Mabasa

2. Introduction • The Site for the proposed stadium was confirmed by the former Executive Mayor of Mbombela LM on 16 February 2005; • The Mattafin site as previously selected by the Council has been confirmed; • The site is located as indicated on the attached plan

3. Site Map

5. Strategies • Measures in place to ensure targeted deadlines are achieved • Key Performance Indicators for monitoring (to check actual deliverables) • EIA completed • Main Contractor appointed • Monitor scheduled activities against targeted dates

6. Strategies (continued……) • Procurement Strategy • Partnering approach strategy – sharing risks and benefits amongst role players • Designs which will be easy to implement (procurement of goods taking a very long time)

7. State of Readiness • Before the decision was taken by the LOC in February 2006 that Nelspruit will be one of the host cities, the following processes were commissioned by the municipality to finalise the site preparation: • Detailed precinct plan indicating basic site layout • Environmental Impact Assessment • Detailed geological investigation • Detailed master plan layout for all bulk services….

8. State of Readiness (Cont….) namely water, sewerage, roads, stormwater, electricity, etc • An independent professional service provider was also appointed by the municipality to conduct a transportation study (Report submitted to Goba Consulting Engineers). • A report on the business plan around the Mbombela 2010 Stadium and other Facilities have been tabled to Council and we are waiting for approval.

9. Procurement Processes • Procurement Strategy: Design by the Employer • The magnitude of this project forced us to revisit our 3 committees. • The procurement strategy was determined by the Bid Specification Committee. • A decision to appoint consortium, instant of individual professionals was determined-BSC

10. Procurement Process ( Cont…) • Tenders for professional services were invited for both project management firm and the professional team (appeared 12 February 2006) • Both tenders were advertised in a national newspaper for 4 weeks and closed on the 10th of March 2006. • Responsive tenders were evaluated in terms of criteria set out in the terms of reference, which complied with the “standardized procurement documents for professional services”

11. Procurement Processes ( Cont…) • The procedure for evaluating responsive tenders was based on Method 4 of the CIDB (quality criteria, financial offer and preferential points). • The Bid Evaluation Committee submitted both evaluation reports to the Bid Adjudication Committee on the 28th of March 2006. • On the 29, the committee referred both reports back to the Evaluation Committee to provide some documents which were left out as annexures.

12. Procurement Processes ( Cont…) • On the 31st of March, the BAC supported the BEC’s recommendations to appoint both Platinum Sports Consulting (project manager) and Lefika Consortium (professional team). • The committee recommended to the accounting officer who took a decision to appoint both teams on the 3rd of April 2006.

13. Project Management Team • Appointed team: Platinum Sports Consulting (Pty) Ltd • Platinum is currently involved at Orlando Stadium as Structural Engineers for the project. • The company was involved in similar projects around the country in the past. • The project manager will act as the Council's agent to ensure that project implementation takes place within time and budget constraints

14. Professional Team • Appointed: Lefika Emerging Equity Consortium (Pty) Ltd. • The Consortium is made of the following companies:- • Goba Consulting Engineers – Civil and Structural. They are assisted by Connel Mott Macdonald. • L&R Architects – Architectural. Advised by HOK.

15. Professional Team (Cont…) • SVR Quantity Surveyors and PM – QS • Watson Mattheus Electrical Engineers assisted by WSP • VMG Mechanical Consultants • Leader of the professional team is Lefika • Two of the team members i.e. L&R Architects and SVR QS are currently involved in the Amakhosi Stadium in Krugersdorp.

16. Professional Team (Cont…) • The team had included in their consortium 4 local companies as sub-consultants to the project. • The local firm which was appointed by the municipality to conduct the geological investigation and compile a geotechnical report had been appointed by Goba as their structural sub-consultants.

17. Professional Team (Cont…) • Other specialists like acoustic engineers, fire designers, pitch designers, etc have been appointed. • A local land surveyor had been appointed to survey the whole land and plot GPS points to be used in the SDP.

18. Delivery Targeted Dates • 12 February 2006: Advertisements • 17 February: Clarification or briefing meeting • 10 March 2006: Tender Closing • 04 April 2006: Appointment letters to both teams • 18 April 2006: Client briefing meeting with both teams • 01 May 2006: Site Development Plan ready

19. Delivery Targeted Dates (Cont…) • 08 – 13 May 2006: Concept Design Presentation: HOK and Connel Mott Macdonald in UK. • 19 May 2006: Conceptual Design Presentation: Client and other role players. • 30 May 2006: EIA Report - final submission to DALA • 31 May 2006: Final Design Concept Presentation: Client • 13 June 2006: Financial / Cost BD Presentation based on Final Design Concept: Client • 01 July 2006: Preliminary Design ready for costing

20. Delivery Targeted Dates (Cont…) • 19 July 2006: Presentation to Client – regarding budget based on prelim designs. • 31 July 2006: Finalize and document design • 04 August 2006: Advertisement - Bulk Earthworks. • 31 August 2006: Tender Close. • 18 September 2006: Appointment letter to contractor.

21. Funding • Estimates are that the facility would cost at least R550m • State has indicated that it would fund at least the cost to build the facility • Supporting infrastructure might be jointly funded by Provincial and Local Government : Estimates in this regard are at least R300m.

22. Funding (Cont…) • The Municipality has however already spent at risk approximately R3m on the processes thus far; • DBSA would act as fund manager for funds that National Treasury would direct to the municipality; • Documents required for funding have been submitted to DBSA early this month and waiting for feedback.

23. Legal Matters • The Mbombela Local Municipality has already entered into a Host City Agreement as well as a Stadium Availability Agreement with FIFA. • In terms of the mentioned agreements the City binds itself to the undertakings provided by National Government as part of the Government guarantees.

24. Legal Matters (Cont…) • The agreements contain a host of requirements that would in certain cases even entail by -law amendments and the development of new by –laws.( Ambush Marketing etc) • Although the stadium has not yet been completed, its availability , subject to the conditions of FIFA had to be ensured

25. Important Considerations • The value of the event is not limited to the period when the World Cup takes place. • It is obviously the main focus but the following benefits would be derived from the event; • International exposure to the city • Influx of tourists and strengthening of the industry • Building of a new multi sports facility • Investors confidence in the city leading to economic growth and job creation

26. Important Considerations (Cont…) • Opportunity to uplift the level of soccer and other sports codes in the area and to implement a sport strategy to ensure a lasting legacy as a result of the event; • Upgrading of infrastructure such as roads, electricity, water , sanitation and transport modes. • Development of a new node through the leveraging of infrastructure

27. To successfully complete the infrastructure within time, budget and FIFA compliance requirements Safety and security measures Tourism strategy Event management Hospitality sector Challenges

28. Public Transport( Road and Air) Traffic Medical facilities Stadium Management Accommodation Telecommunication Stake holder management City management International relationships ( Swaziland , Mozambique Challenges (Conti…)

29. Role players • Local Municipality( Has the primary responsibility as the host City) • National Government departments as funding source and in view of guarantees provided to FIFA • Provincial Government as co –funder • SAFA • LOC • Organised Business community • (Tourism, accommodation, leisure)

30. Role players • Civil society • TRAC • KMIA (Airport Management Company) • Telkom • Eskom • Private Hospitals • Private Security Companies

31. Coordinating Structure • High public interest requires constant feed back to public • Has to ensure that procurement processes are transparent and accountable. • Communication between role player are efficient with clear definitions of roles and responsibilities • Important to involve stake holders when required and only when value is added. • Different levels of involvement at different phases of project progress. • Core group of stake holders to be involved throughout to ensure continuity

32. Coordinating Structure (Cont…) • The final coordinating structure should take into account the roles and responsibilities with short lines of decision making. • Certain personnel appointment have been made in Provincial Government or will be made and it is important to define roles of persons in relation to city officials to ensure maximum coordination

33. Coordination Structure (Cont…) • Most probably two levels of coordination namely political leadership and administrative level. • Structure will be finalised as matter of urgency and certain proposals are being prepared for consideration by our Mayor

34. Conclusion • The event provides a once –off opportunity that has to be utilised to the benefit of the broad South African community. • Important to understand the potential of the event and to position the City and Province accordingly. • The political leadership of the Province as well as the city are fully behind the project and will be working as a team to deliver the project.

35. THANK YOU