Saturday, December 23, 2006

Row erupts over R7bn port tender

19 December 2006

A bitter row erupted on Monday between two giant construction companies over who should be awarded the multibillion-rand tender for the new Dube Trade Port, which will incorporate King Shaka International Airport.

This follows Monday's announcement that Group Five's Ilembe Consortium had been selected as the preferred bidder for the lucrative R7-billion contracts.

The Indiza Group, which lost the bid, is now spitting venom and has said it will appeal to the responsible minister to have its proposal fairly adjudicated.

The move is expected to delay the start of the construction as the airport must be completed before the soccer World Cup in 2010.

Sources say Indiza was crying foul because Ilembe's pricing was about R500-million more than its bid.

The Dube Trade Port was not available to comment on the claim.

It is understood that the contest for the Dube Trade Port's tender saw ANC bigwigs fighting against each other as both Ilembe and Indiza teams include senior ANC personalities.

The Daily News has been informed that Indiza's team has Prince Sifiso Zulu, Judy Nxasana, Themba Ngcobo, Moses Tembe, Ashwin Trikamjee and former Denel boss Sandile Zungu, while Ilembe has Durban tycoon Vivian Reddy, entrepreneur and former Gauteng premier Tokyo Sexwale and Vusi Mavimbela, a former National Intelligence director general and former President Thabo Mbeki special adviser.

The Indiza Group on Monday lambasted the Dube Trade Port, saying it had entered into negotiations with the Ilembe Consortium as preferred bidder, without a fair comparison of the tender price and key technical and commercial issues of Indiza's proposal.

"At this stage, Indiza is restricted by way of signed confidentiality agreement from disclosing details. It can however, say Dube Trade Port's conduct to exclude Indiza is unlawful, contrary to Indiza's right to fair administrative process," the group said.

The group argued that its members had substantial experience of the project and that every effort had been made to submit a proposal that is not only compliant but outstanding in all respects.

A war of words is expected to intensify when the preferred bidder for the King Senzangakhona Stadium is announced in the next few days.

Source: IOL

Durban to host draw for 2010 World Cup

14 December 2006

News that Durban will stage the Fifa World Cup preliminary draw on November 23, 2007, after securing the right to host the event ahead of Johannesburg and Cape Town, has been warmly welcomed.

The announcement was made in Johannesburg by World Cup local organising committee Chairman Irvin Khoza on Wednesday.

The preliminary draw is regarded as the launch event for the 2010 tournament and will decide which teams play each other in the qualifying rounds.

The event will also present Durban with an opportunity to market itself as a home base for visiting teams as it will be attended by 3 000 Fifa delegates and representatives of the countries hoping to qualify for the finals.

The draw will take place at Durban's International Convention Centre and will be broadcast live to more than 200 countries worldwide.

South Africa and Italy will receive automatic entry to the finals by virtue of being the hosts and reigning champions respectively.

Durban Chamber of Commerce and Industry chief executive Bonke Dumisa said the draw would garner good publicity for Durban.

eThekwini Mayor Obed Mlaba said the coup came hard on the heels of eThekwini winning the Vuna award for the best-run municipality in the country.

KwaZulu-Natal Local Government MEC Mike Mabuyakhulu also praised the municipality for winning for the Vuna award.

Source: IOL

Durban's draft budget presented

8 December 2006

The draft budget for the eThekwini Council next year sees a six percent increase in capital spending over the past year, meaning R3,1-billion will be allocated to building Durban.

The draft budget for the 2007/08 financial year was presented at a council meeting at the International Convention Centre on Thursday. It will be adopted in April next year after public hearings scheduled for March.

The draft budget does not spell out what the increases in water, electricity and rates will be. Nor does it indicate what the total budget will be. Last year, the combined operational and capital budget was R14- billion.

Then the ruling ANC came in for flak because rates, water and electricity costs increased by 7,5 percent - almost double consumer inflation.

A key element of the draft budget is massive capital spending on the soccer World Cup between next year and 2010.

The council wants to spend R943-million to showcase the city during the event. The expense is broken down as follows:

# R190-million for the new soccer stadium;

# R150-million for the adjoining King's Park sports complex;

# R306-million for transport;

# R38-million for safety and security;

# R247-million for city beautification;

# R10-million for improving the city's tourism product;

# R12-million for improving the environmental focus; and

# R8-million on support infrastructure. The R943 -illion is but a quarter of the anticipated R4-billion total that will be spent on 2010.

The council is expecting the balance to come from national government coffers.

For example, the underground parking around the stadium will cost R600-million, but the city only wants to pay R30-million towards this.

The new people-mover tram and bus system will cost R845-million, but the city only wants to pay R52-million towards it.

Durban believes it will cost R2-billion for new bulk infrastructure (roads, storm water drainage, sewerage, electricity and water) to expand the city's northern corridor.

It has also budgeted to spend R700-million in the next three years on the Western Aqueduct, a new pipe transferring water to the Highway and Umhlanga areas.

Between now and 2016, Durban wants to spend R252-million on freight management infrastructure at the port, R136-million on tourism nodes, R382-million on re-generation of business centres, R399-million on IT projects, R613-million on the ICC, and R1,4-billion on meeting water and sanitation backlogs.

Over the same period, council wants to spend R2,4-billion on new houses and it expects the national government to spend R5,2-billion on the same. The amount of R600-million is earmarked for upgrades to state hostel and council flats.

Reacting to the draft budget, Democratic Alliance caucus leader John Steenhuisen said his party would set up a task team to examine spending in detail.

Source: IOL