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16-07-2007  Minister announces Olympic investment targets | |
 In 2007 the government is expected to spend RUR 25 billion (approx. $980m) on preparations for the 2014 Winter Olympic Games in Sochi, Economy Minister German Gref said at the meeting of the Coordination Council for the federal program, “Development of Sochi as a mountain and climatic resort.” 30 percent of this money will be spent on transport infrastructure. A total of RUR 341 billion (approx. $13.37bn) will be allocated for Sochi’s development under the federal program, of which RUR 31 billion (approx. $1.2bn) will be spent on the construction of sporting facilities. The bulk of the funds will finance the construction of roads, electricity and utilities systems. Gref noted the federal law on the 2014 Olympic Games would be passed in September 2007. “We want to pass the bill and form the Olympic Committee in September,” the minister said. In accordance with the requirements of the International Olympic Committee, Russia will pass the 2014 Olympics regarding the organization and conduct of the Olympic Games, tax regulations for companies involved in the construction of Olympic facilities, as well as visa and customs regulations. The bid committee will be transformed into an organization committee to prepare the Olympic Games. “We have to consider in detail the entire scheme of managing the Olympic movement over the next seven years,” Gref noted. The International Olympic Committee will send its evaluation commission to Russia on August 27. A total of RUR 185.8 billion (approx. $7.3bn) will be allocated from the budget for the Sochi development program, including RUR 15.9 billion (approx. $623.5m) in 2007, RUR 31.6 billion (approx. $1.2bn) in 2008, RUR 27.3 billion (approx. $1.07bn) in 2009, RUR 22.2 billion (approx. $870.6m) in 2010, RUR 27.1 billion (approx. $1.06bn) in 2011, RUR 26.3 billion (approx. $1.03bn) in 2012, RUR 22.1 billion (approx. $866.7m) in 2013 and RUR 8.4 billion (approx. $329.4m). Meanwhile, the authorities are concerned about control over the use of funds earmarked for the 2014 Olympic Games. President Vladimir Putin said he would ask the Prosecutor General’s Office to set up a working group to control, among other things, the use of funds allocated for the construction of Olympic facilities. The government also hopes that private investors will help Sochi's development. Commenting on the issue, Finance Minister Alexei Kudrin said: “Partnership between the private and public sectors will be implemented in full measure.” Private investors will finance the construction of hotels, restaurants and some roads. In addition, a number of large Moscow businessmen announced plans to expand their business on Russia’s Black Sea coast. "Alliance Media" News Agency, based on the story by RBC 
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