The city's Bid Adjudication Committee (BAC) decided on Monday not to award any of the three bids submitted to operate the stadium after 2010.
According to the report before the BAC, the three tenders were found not to comply with some of the elements of the bid document.
The city will re-advertise the Request for Proposals (RFP) in due course, either in its original form or as reformulated. It will be open to both the original bidders as well as any new bidders.
The city is confident that it will receive acceptable proposals when re-advertised, whereupon these will be duly considered. The second round will not delay the stadium project in any way.
The process in respect of the RFP will continue notwithstanding the challenge by the Cape Environment Protection Association (CEPA) to the approval processes and resultant decisions for the construction of the stadium at Green Point.
The tender committee report listed the bidders as Facilities Management Africa (Pty) Ltd., Green Point Western Cape Consortium (Bustque 0115 (Pty) Ltd.) and a consortium consisting of four parties, Investec, Venfin, SAIL and Western Province Rugby Football Union.
"This decision was not taken lightly and only after the professional evaluation team made a careful analysis, took legal advice and had personal meetings with the bidders," said Mike Marsden, Executive Director of Service Delivery Integration for the city.
This is a major contract for a R3 billion asset, he said and we must make absolutely certain that we find the right operator with the best long-term management pan, track record and success recipe.
The bid elements assessed included, among other things, their events programmes, operational management plan, environmental management system proposed processes and structures for involving the community, as well as compliance with the detailed Record of Decision which determines all the environmental conditions for the stadium.
"We also studied factors such as their track record and company profile, expertise, business plan, financial contributions to the stadium itself and the surrounding Green Point sport and recreation precinct as well as how much money the city would get in terms of rental and a share of projected revenue.
"We continued with the assessment of all these aspects while also briefing a senior legal team to advise the city on certain legal aspects," he said.
The final view of the Bid Evaluation team was that the tender could not be awarded on the basis of current submissions.
"We have been encouraged by some elements of the bids. The prime location of the stadium, walking distance to key support, business, transport and tourism services, the Central Business District, and the Victoria and Alfred Waterfront has a clear attraction for would-be operators and investors," said Marsden.
Countrywide, the construction of the new stadiums is expected to be completed in three years' time.
The stadiums will be designed for Cape Town (Greenpoint Stadium), Durban (Kings' park Stadium) and Port Elizabeth (Nelson Mandela Bay) and Nelspruit (Mbombela Stadium)
Of these, Durban's is set to be the biggest, hosting 85,000 soccer fans.
The stadium in Port Elizabeth is to have capacity for 40,000 while Cape Town's venue will seat 70,000 and have a retractable roof.
The Green Point stadium has been earmarked for one of the semi-finals games.
The other six stadiums in Rustenburg (Royal Bafokeng Sports Palace), Bloemfontein (Free State Stadium), Pretoria (Loftus Versfeld Stadium) Polokwane (Peter Mokaba Stadium) and Johannesburg (Soccer City and Ellis Park Stadiums) are being upgraded.
Article published courtesy of BuaNews
