In early 2018, a consortium, E-Movement, that was interested in bringing Formula E to Cape Town approached the City of Cape Town for support.

Following lengthy discussions, a decision was made to undertake a feasibility study to determine whether it would be viable to host the event in Cape Town.

In December 2018, the City issued an endorsement letter for the feasibility study after confirmation from Formula E Operations Limited (the global promotor and organiser of the worldwide championship for fully electric single seater racing known as the FIA Formula E World Championship) that they were in discussions with a South African consortium – E-Movement.

In June 2019, the City made its first announcement on Formula E and the possibility of sponsoring the event pending the results of the feasibility study.

Intellectual Property

The feasibility study, which included site inspections undertaken by City officials, representatives from Formula E Operations Limited as well as E-Movement, identified three potential track layouts.

Formula E Operations Limited, the global promoter and organiser, designed the track layouts.

A preferred track layout has been identified from the feasibility study but still needs to be ratified by Formula E Operations Limited and other event partners.

Cape Town Grand Prix SA’s (CTGPSA) claim that their track design has been stolen is baseless and should be immediately withdrawn.

There is no truth to allegations that the City has stolen the intellectual property of CTGPSA.

Despite being requested to submit a proposal at the time of the original meeting, CTGPSA has at no stage submitted a proposal to the City for Formula E. Neither was the track illustration in their pamphlet used by the global promoter and organiser , Formula E Operations Limited.

City Event Support

The City of Cape Town has an event support process in which it provides funds or procures services for organisations who host events within the municipality’s jurisdiction.

Annually, the City provides financial assistance and/or city services to approximately 180 events.

The City’s Events Policy regulates this process.

The Executive Mayor, based on the recommendation of the Special Events Committee, approves funding or support for events. This committee reviews and evaluates all event support applications as per the City’s Events Policy and the Council delegations.

The committee only evaluates applications submitted through the events applications process.

The sponsorship funding currently set aside for the Formula E was approved based on the above process after E-Movement submitted an application and on confirmation that they have been awarded the rights to host the event in Cape Town, South Africa.

There was no bidding process for the funding.

The City’s Policy is clear that when evaluating events support applications, the City should ensure that, among other requirements, the events will:

Demonstrate a positive economic, social and environmental impact.

Create job opportunities for residents.

Provide opportunities for local traders.

Bring international and national media attention to Cape Town.

Provide the City with national and international marketing opportunities.

Create lasting legacies from the hosting of the events.

Improve social cohesion.

Based on the evaluated application, the event meets the criteria set out in the City’s Events Policy.

Road upgrades for the track

On 19 August 2021, council deliberated on and approved the funds required for the road upgrades in the Green Point Precinct where the Formula E is set to take place.

The civil engineering works required to realise the track layout is being funded through the City’s Transport Department.

The City would like to place on record that some of the funds for the Green Point roads upgrades project were transferred from projects that have either been completed or the funding is no longer required due to savings on the projects.

The transfer of the funds will not affect any upcoming projects already in progress nor those that have already been completed.

Cape Town Grand Prix SA (CTGPSA)

The City can confirm that officials met with representatives of the CTGPSA in August 2019 on their request to discuss their intention of bringing Formula 1 to Cape Town.

Their request for a meeting came after an announcement by the City, made on 5 June 2019, that it was considering supporting Formula E.

The discussions with CTGPSA centred on Formula 1. Formula E was never part of the discussion.

Officials took the CTGPSA through the requirements for City support and obtaining an endorsement letter.

Following the discussions on the City’s events support processes, CTGPSA was asked to follow the event support application process as required by legislation and City policy.

The City has never received an events support application from CTGPSA for Formula 1 or Formula E.

Bidding process for Formula E

It is important to note that the City of Cape Town did not participate in the bidding process for Formula E nor did it make a decision on the South African agent to run the Cape Town leg of Formula E.

The decision on awarding the bid was solely taken by the Formula E Operations Limited, the global promoter and organiser for the event.

In December 2018, the City issued an endorsement letter for a feasibility study into the staging of Formula E after confirmation from Formula E Operations Limited that they were in discussions with this South African consortium.

The consortium approached Formula E Operations Limited on their own as is the case with many event organisers who are looking to acquire rights to host international events in Cape Town.

It is important to note that this bidding process differs from the FIFA World Cup bidding process, where the country is required to submit the bid. The Formula E bidding process is open to private companies.

Additional points

It is also noteworthy that the City of Cape Town was approached for support by a Cape Town Formula E consortium – which later became E-Movement – in 2018. This was more than a year before CTGPSA made contact with the City, where they only discussed Formula 1 and not Formula E.

During those discussions with CTGPSA, the organisation’s representatives informed the City that they required R100 million for the bidding process – where a substantial portion of that bidding fee would have to come from the City.

Bidding does not guarantee that event rights will be granted and losing bidders forfeit the fee.

In conclusion, the CTGPSA has never been precluded from making an application for support, in fact they were asked to follow the event support application process and were even provided with information on how to go about making its Formula 1 application submission.

The application would be considered like any other events proposal should the CTGPSA make a submission to the City for Formula 1.

Note that the City did not fund any bidding process to Formula E Operations Limited to obtain the rights.

Source: City Of Cape Town