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  • By the Book: 2014 Olympics Guarantees


    06/06/07

    2014 Guarantees

    All three candidates have financial guarantees for their Games organizing committees; Russia’s government has pledged the most additional cash for their bid.

    PyeongChang  
    PyeongChang:  The organizing committee’s guarantee comes from the national Ministry of Planning and Budget and the governor of Gangwon Province.

    “The Central Government has issued Guarantees to subsidise 50 per cent of construction expenses for the Competition Venues and 100 per cent of infrastructure construction expenses for airports, railroads, expressways and national roads,” according to the bid book.

    PyeongChang estimates transportation infrastructure costs at $5.6 billion.

    The remaining guarantees for the venue construction expenses are split between the provincial government and the three Host City Support Committees in PyeongChang, Gangneung and Jeongseon.

    The committee will also receive a subsidy of $145 million; half from the national government, the rest from regional and local government. The subsidy is 11.5% of projected revenues.

    Salzburg  
    Salzburg: Federal laws passed by Parliament as well as city and state regulations guarantee any lack in the organizing committee’s budget, as well as some seed money.

    “An initial cash infusion of $125 million of shareholder capital from the Federal, State and Local government partners is guaranteed to the OCOG as operating contingency funds for the early planning years,” according to the bid book.

    Salzburg’s budget does not categorize the $125 million as a subsidy.

    Sochi  
    Sochi:  The Russian bid received a guarantee from Prime Minster Mikhail Fradkov. The federal government has also promised a $418 million subsidy to the organizing committee – 28% of its projected revenues. But the biggest promise is the Federal Target Program for the Development of Sochi.

    “Sochi’s vision for extraordinary Games is bolstered by a federally guaranteed $12 billion infrastructure improvement program,” the bid book reads, referring to the FTP.

    The infrastructure improvements will include major road and rail construction.

    Throughout June, Around the Rings presents By the Book, detailing side-by-side comparisons of each city competing for the 2014 Olympic Games.

    By the Book is based on information from the bid books of the 2014 bid cities.

    The IOC votes on the 2014 Olympic city on July 4.

    Your best source of news about the Olympics is www.aroundtherings.com, for subscribers only.