City of Cape Town to enter into service delivery agreement with the Cape Town Stadium Municipal Entity
24 January 2018
This is a notice in terms of Section 80 of the Local Government: Municipal Systems Act.
The Cape Town Stadium municipal entity was established on 1 November 2017 with the City of Cape Town a 100% shareholder.
| Period of agreement | Fifty years from the commencement date. The City may, in its sole discretion extend the service provider’s appointment for a further period of 49 years. |
| Funding | The City will provide the grant/allocation to cover operational expenditure in terms of an approved budget and support for the first three years. The municipal entity will be responsible for all maintenance, which will be based on the City’s maintenance standards. The City will be liable for capital expenditure. |
| Staff | The City will second staff members to the municipal entity with the concurrence of the staff members concerned. Staff currently employed at the Cape Town Stadium will remain as City employees, will be paid by the City and will receive their standard benefits including bonuses and leave pay. The municipal entity may appoint additional staff. |
| Services to be provided | General facility and operations; events and entertainment services management; commercialisation, marketing and hospitality management; finance, legal and administration management. |
| City's obligations | The City must provide dedicated and prioritised support with regards to accounting, brand management and communication, financial management and budgeting support, including utilisation of the SAP (Systems, Applications and Products) system, as used by the City and Supply Chain Management support. In addition, the City must provide dedicated and prioritised services in regard to human resource management support, as well as internal audit and risk management support including oversight over the service provider’s audit committee. |
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