SA's bid to host the Square Kilometre Array (SKA) has been given an "edge" over rival Australia.
Addressing Parliament during his budget speech this afternoon, finance minister Pravin Gordhan said the project would qualify for value-added tax (VAT) relief.
SA is bidding against Australia to host the Square Kilometre Array, which is an international collaboration to build the world's largest radio telescope.
"I am happy to confirm that the project will qualify for VAT relief, which will surely give [science and technology] minister [Naledi] Pandor the winning edge in this contest."
The project, in the Northern Cape, is a multibillion-rand endeavour. The winning country is expected to be announced by the end of the year.
The South African demonstration telescope, MeerKAT, is being constructed in two phases. The seven-dish array prototype was completed in 2010.
Government has allocated R894.6 million over the medium-term to complete MeerKAT, which should be fully assembled by 2013/14.
The SKA will be a mega telescope, about 100 times more sensitive than the biggest existing radio telescope. It will cost about EUR1.5 billion, with construction possibly starting as early as 2016, and is expected to be completed by 2024.
The telescope array will comprise about 3 000 dish-shaped antennae and other hybrid receiving technologies, with a core of about 2 000 antennae and outlying stations of 30 to 40 antennae each, spiralling out of the core.
These stations will be spread over a vast area of up to 3 000km in the Northern Cape province.
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