City of Cape Town plans to spend R44 million on infrastructure upgrades for Formula E

PHOTO CREDIT: ABB FIA Formula E Championship.

The City of Cape Town’s mayoral committee (Mayco) is calling on the Council to support the upcoming ABB FIA Formula E Championship event set to take place on 26 February 2022 around the Cape Town Stadium and Green Point Park. 

The FIA recently announced Cape Town as a new host city on its provisional FIA Formula E race calendar for the 2021/2022 season.

Cape Town has already demonstrated its capabilities in hosting major international motorsport events with the success of the FIA Rallycross Championship, the Extreme Festival National Championship (at Killarney), as well as the annual Drift City at the iconic Grand Parade.

"Over the last two years, we have been working hard behind the scenes within the administration and with the event organisers putting together all the requirements necessary to put together an event of this magnitude. Approval from council will allow us to begin the civil engineering works on the racetrack and ensure we can finalize all the logistics before the first-ever Formula E race on the African continent," Executive Mayor Alderman Dan Plato, said.

The proposed Formula E race track will be around the Green Point Park and Cape Town Stadium area(s).

"We have already had great engagements with local residents and ratepayers’ association who are fully behind this race event coming to Cape Town. This event will help Cape Town create job opportunities for residents, business opportunities for local entrepreneurs, the hospitality sector and benefit communities who are still feeling the economic effects of the pandemic," Mayoral Committee Member for Safety and Security Alderman JP Smith, said.

"The City notes the various issues raised by local civic and ratepayers associations around managing the events impact on residents during such a major event and these will be factored into the events approval."

Furthermore, the council has been requested to approve support for the road infrastructure updates required to host the Formula E event in 2021. These upgrades will cost approximately R44 million and will provide a long-term benefit to residents and reduce the need for future budget allocation to perform routine maintenance and upgrades in the future.

Plato's executive mayor delegation has also approved supporting the event with R2 million in cash to the event returning to the City for future races. A further R2 million will be provided in the form of services, on the above premise. 

Mayor Dan Plato admits that "the City’s contribution to this race event is dwarfed in comparison to the return on investment from hosting such an established international sporting event. In the three years that Formula E has been hosted in Hong Kong, it has contributed approximately R1,5 billion to that economy. This benefits a wide range of business in the event chain including manufacturing and service industries."