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It's costing the government about R30bn to host the 2010 World Cup soccer tournament, compared with 2006's anticipated cost of R14.9bn.

Danny Jordaan, chief executive of Fifa's local organising committee, told Sake24 on Friday that the "total cost of stadiums and their supporting infrastructure [is now] R30bn."

This means that in the past three years costs have doubled. Responding to enquiry, Rich Mkhondo, chief spokesperson for the local organising committee, confirmed Jordaan's figures.

Mkhondo explains that "supporting infrastructure" basically comprises additional developments such as the laying on of water and municipal services around stadiums.

"This also includes the development of transport and security infrastructure around stadiums."

Treasury spokesperson Lindani Mbunyuza also confirmed that the account currently stood at R30bn.

"This figure should be seen in the proper context. In effect, 2010 has been a catalyst for government to tackle large-scale infrastructure projects. Various projects that had been considered for the future were brought forward and this R30bn therefore includes money that would have been spent at some time in the future."

According to Mbunyuza 2010 is being financed not only by national government. "Host cities must also carry some of the costs."

One expense already incurred by host cities includes a website advertising Durban, which is reputed to have cost R6.5m. Mbunyuza was unable to say which portion of the expenditure is to be carried by local governments.

Jordaan was asked on Friday who was responsible for the cost of the stadiums and the associated infrastructure, he said the government was footing the total bill.

Expenditure on the tournament has been steadily increasing since 2006. That on the stadiums was estimated at R8.4bn in 2006, and the then Deputy Minister of Finance, Jabu Moleketi, declared that if the figures were exceeded someone else would have to pay.

In this year's budget former finance minister Trevor Manuel, however, allocated an additional R463m to the construction of the stadiums.

"Government will spend a total of R11.5bn on building the stadiums," he announced in his 2009-2010 budget review. This means that the cost of the stadiums has increased 37% since 2006.

This year, in terms of the 2009-2010 budget review, an additional R300m has been set aside for information technology (IT) infrastructure at the stadiums.

This brings the total expenditure on IT infrastructure for the World Cup soccer tournament to R2.083bn.

The conversion from analogue to digital television for the tournament will cost a further R530m.

Other associated costs for 2010 that the government will pay include R720m for host cities to support their preparations for the Confederations Cup and World Cup soccer tournaments.

Further cost increases relate to security.

In 2007 the number of police officers to be on duty during the World Cup was estimated at 31 000 members. According to Jordaan these would now number 41 000 in June 2010. "At each World Cup host city, at each stadium, 700 police members would be on duty at each match," he said on Friday.

He reckons the total cost of policing during the tournament will be R1.3bn, and the World Cup project will provide jobs for 415 000 people and the stadiums will be complete by October this year.

But on Friday he was still unable to provide certainty around the financial sustainability of the stadiums after 2010.

"New stadiums had to be constructed. Most of the existing ones were too old to serve for 2010. Plans have been devised for their sustainability after 2010."

But, said Jordaan, stadiums can in future be shared by sporting codes like rugby and soccer teams.

"Just look at the Stade de France and the Millennium Stadium. They accommodate various types of sports.

"And the local sporting codes will move over to the new stadiums. Why would one want to use a one-star hotel if a five-star one were available?"

(Source: fin24.com)