IOC2014 EVALUATION COMMISSION REPORT Library... · OLYMPICGAMES CONCEPTAND LEGACY SOCHI 10 – toestablishRussia’sfirstalpine,slidingandskijumping centre; – toimplementRussia’snewphilosophyofinvesting

IOC 2014 EVALUATION COMMISSION REPORTXXII OLYMPIC WINTER GAMES IN 2014

IOC 2014 EVALUATIONCOMMISSION REPORTXXII OLYMPIC WINTER GAMES IN 2014

Published by the International Olympic CommitteeOriginal version: English© IOC – June 2007

Printing byId-Média S.à r.l., Belmont-sur-Lausanne, Switzerland

Printed in Switzerland

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APPENDICES

SUMMARIES

PYEONGCHANG

SALZBURG

SOCHI

INTRODUCTION 4

CONTENTS

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INTRODUCTION

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Dear Colleagues,

The IOC Evaluation Commission (the Commission) for theXXII Olympic Winter Games in 2014 is pleased to presentthe results of its evaluation of the three Candidate Cities.These cities, listed in the official order of drawing of lots, areSochi (Russian Federation), Salzburg (Republic of Austria)and PyeongChang (Republic of Korea).

Seven cities initially submitted applications to host the2014 Olympic Winter Games: Sochi (Russian Federation),Salzburg (Republic of Austria), Jaca (Spain), Almaty(Kazakhstan), PyeongChang (Republic of Korea), Sofia(Bulgaria) and Borjomi (Georgia). They were assessed by aWorking Group which presented a report to the IOCExecutive Board. Upon the basis of this report, the threeCandidate Cities were selected by the IOC Executive Boardon 22 June 2006.

Throughout the 2014 bid process, the IOC has continued tobuild on and improve the quality of the services it offers tobid cities. Such services have included the Applicant CitySeminar, the Turin Olympic Winter Games Observer Pro-gramme, a debrief meeting of the Turin Games, CandidateCity workshops and access to the IOC’s Olympic GamesKnowledge Management programme.As a result, the 2014Applicant and Candidate Cities have had more informationand expertise available to them than ever before.

The Commission notes that this is reflected in the detailedplanning and comprehensive strategies implemented bythe Candidate Cities on such issues as sustainability,accessibility and integrated city development. In particular,it notes that the recommendations of the IOC OlympicGames Study Commission have been taken into consider-ation by the Candidate Cities and applied according to eachcity’s specific plans.

Based on such in-depth reflection and analysis, theinvestments made throughout the bid process can be seento generate positive legacies irrespective of whether a city

is awarded the Olympic Winter Games. Bidding for theOlympic Winter Games is also proving to be a catalyst forthe development of winter sports regions, acceleratedconstruction of general infrastructure and sports facilitiesand for high-level political, financial and administrativecollaboration, showing the unique nature and influence ofthe Olympic Games.

The quality of the Candidature Files and the presentationsmade during our visits greatly assisted us in assessingeach city’s proposal and in the preparation of this report.During the visits, the Commission was very pleased tomeet with the IOC members in the respective countries andmany Olympians and Paralympians.

This Commission is composed of representatives of allcomponents of the Olympic Movement: the IOC, IFs, NOCs,athletes, IPC, former Olympic Games organisers andadvisors (see Appendix A).

The Commission has carried out a detailed analysis of thethree Candidate Cities, to assist the IOC in the importantdecision of electing the Host City and to underline thechallenges that could be faced in each of these citiesduring the seven years leading up to and including the2014 Olympic and Paralympic Winter Games.

The Commission’s task is a technical and fact-finding one:to verify the information stated in the Candidature File, todetermine whether proposed plans are feasible and tomake a qualitative assessment of risk.

The Commission followed the same working procedures ineach Candidate City: briefing sessions were held on all 17themes of the IOC Candidature Procedure and Question-naire and visits were made to each of the proposedcompetition and non-competition venues (see Appendix Bfor visit dates).

The Commission has taken into consideration allinformation received up until its departure from the

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INTRODUCTION

respective cities and the report reflects the unanimousopinion of its members.

The report is presented on a city-by-city basis, in the orderof drawing of lots. The reports are followed by an overallsummary of each city.

Some general matters which address a number of pointscommon to all Candidate Cities can be found below.

To complete this introduction, on behalf of the Commission,I would like to thank the IOC administration for assistingthe Commission in analysing the bid documents whichgreatly facilitated the Commission’s work. I would also liketo thank Gilbert Felli, Olympic Games Executive Director,and Jacqueline Barrett, Head of Bid City Relations, assistedby Sophie Skeels and Helen Stewart, for their hard workand dedication.

I would like to take this opportunity to wish you, mycolleagues, all the best in the important decision of electingthe Host City of the XXII Olympic Winter Games in 2014.

Chairman of the 2014IOC Evaluation Commission

General matters1. Travel times

All travel times mentioned in the Commission’s reportare average 2014 bus travel times, as provided by theCandidate Cities in their Candidature Files.

2. Accommodation (see appendix C)The IOC requires Candidate Cities to guarantee

– 22,800 rooms in various categories of hotels– A USD room rate in 2014 dollars for the IOC hotels

(950 rooms)– A maximum USD room rate in 2014 dollars for other

accredited clients (including the formula used, ifapplicable).

During its visit, the Commission noted the hotel ratingsystems used by all Candidate Cities and theirequivalence to the internationally-accepted star ratingsystem used in this report.

3. Finance /EconomyCandidate Cities were requested to provide budgetfigures in both 2006 and 2014 US dollars, as well as inlocal currency. All figures mentioned in the report (withthe exception of accommodation) are in USD 2006 value.

The economic statistics mentioned in the section onPolitical and Economic Climate and Structure havebeen sourced from the World Bank and relate to 2005(the most recent figures available).

4. SecurityTerrorism is, by definition, a global concern. The Com-mission has not commented on this element of securityin the individual city reports as it considers that allcities and their respective countries have demon-strated a commitment to maintaining a high level ofvigilance and implementing prevention methods.

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5. Environment and MeteorologyIncreasing consideration will have to be given andcomprehensive operations and contingency plans andadaptation strategies formulated by Bid Committeesand Games organisers in regard to the effects of globalwarming. The location and altitude of snow venues, thecost, availability and environmental impact of slopegrooming and snowmaking (including water resourcesand storage, and energy production capability) andtransport will have to be considered in this context.

While increases in average temperatures are expectedto be minimal over the seven years to 2014, naturalsnow reliability is expected to fall, and the frequencyof warmer winters, with greatly reduced snowfalls,particularly at lower altitudes, is increasing, as areinstances of extreme weather conditions and naturalhazards such as floods and landslides.

6. Test eventsEach of the three Candidate Cities has committed toorganising a test event in every sport at Olympicvenues.

7. Public opinionAs additional background information, the IOCconducted its own opinion poll in the Candidate Citiesand their respective countries from 27 November to19 December 2006. The results of this poll can befound in Appendix D.

8. Letters of concernAs is the case with each edition of the Olympic Games,letters of concern are addressed to the Commission.The Commission received requests to meet withrepresentatives of certain groups during its visits toSochi and Salzburg, to which it agreed. The Com-mission noted that none of these groups were againstthe Olympic Winter Games but, rather, that theirconcerns related to specific sites and were mainly of anenvironmental, financial and social nature.

9. MapsA map of each city’s project is included in Appendix E.These maps, taken from the cities’ Candidature Files,will assist readers in understanding each city’s overallconcept and to situate the venues.

10. Number of competition venues (see Appendix F)Appendix F lists the competition venues proposed byeach Candidate City, as counted by the Commission.

AppendicesA. List of Commission membersB. List of visit datesC. Accommodation tableD. Summary of IOC opinion poll resultsE. MapsF. Number of competition venuesG. AbbreviationsH. Signatures

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SOCHI

OLYMPIC GAMESCONCEPT ANDLEGACY

SOCHI

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– to establish Russia’s first alpine, sliding and ski jumpingcentre;

– to implement Russia’s new philosophy of investingdomestically for the future.

The Paralympic Games are well integrated into Sochi’s2014 planning.

Legacy and impactThe project for the 2014 Olympic Winter Games is embed-ded in the “Federal Target Programme for the Developmentof Sochi 2006-2014” (FTP) funded 60% by public sourcesand 40% by private investment. The aim of the FTP is tomodernise the region by creating new infrastructure in rail,road, telecommunications, energy and accommodation andthrough the construction of sports venues.The developmentof the Sochi area will take place irrespective of the 2014Olympic Winter Games, though with a reduced level ofinvestment. The benefits of the government’s investment inthis area would create a long-term legacy surpassing theneeds of the Olympic Winter Games.

As one of the top winter sports nations, Russia wouldbenefit significantly from new training and competitionfacilities (including alpine, sliding and ski jumping centresas well as Russia’s first multi-purpose International WinterSports Training Centre in Krasnaya Polyana) which aregreatly needed by Russian athletes to allow them to trainand compete in their own country. The ownership ofseveral of the sports venues would be transferred to theFederal Agency for Physical Training and Sports whichwould be responsible for post-Games operations andmaintenance.

A legacy fund of USD 35 million, which is included in theOCOG budget, would go towards the overall maintenanceand operations of Olympic Park venues after the OlympicWinter Games.

Dates of the Olympic Winter GamesSochi proposes to hold the Olympic Winter Games fromFriday 7 to Sunday 23 February, based on optimal weatherconditions for competition and lower demand on citytourism and transport.

Olympic Winter Games conceptSochi proposes a very good concept based around an icecluster and a mountain snow zone 49 km/50 minutesapart. The bid puts forward a new approach to the icecluster which takes the form of an Olympic Park. TheOlympic Park would be newly constructed 25 km fromSochi city centre on the coast of the Black Sea, 7 km fromSochi airport and would include all ice venues, the mainOlympic Village, the Olympic Stadium for Opening andClosing Ceremonies, the Medals Plaza, the InternationalBroadcast Centre /Main Press Centre (IBC/MPC) and IOChotels. The Krasnaya Polyana mountain zone would containall snow and sliding venues, an Olympic Village and amedia sub-centre.

The Municipality of Sochi extends from the coast to themountain zone thus encompassing all Olympic venuesunder a single, governing body.

With the majority of competition and non-competitionvenues to be built, the Sochi bid presents both anopportunity to create a new “custom-built” winter sportsarea with state-of-the-art facilities, but also the challengeof a major construction project within a defined period.

The concept is driven by the strong vision “Gateway to theFuture”, with the following objectives:

– to transform Sochi into a year-round tourist destinationby maximising the large scale summer tourisminfrastructure during the winter season;

– to develop Russia’s first world-class ski resort;– to create a centre for winter sports in Russia;

POLITICAL ANDECONOMIC CLIMATEAND STRUCTURE

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PopulationThe Russian Federation has a population of approximately143 million, Krasnodar Region 5.1 million and the City ofSochi 400,000. A slight increase is expected in the Sochipopulation for the period 2007 to 2014.

Political structure and responsibilityThe Russian Federation has a directly elected executivePresident. Key members of the Federal Government,including the Prime Minister, are nominated by thePresident with the consent of the State Duma. Powers aredivided between the executive, the legislature and thejudiciary. The 2014 OlympicWinter Games would be underthe responsibility of the executive arm of government.

National economyIn 2005, Russia had a GDP growth rate of 6.4% with a GDPper capita of USD 5,333 and an inflation rate of 10.9%(source: World Bank statistics).

SupportStrong support for the Games has been expressed by thePresident of Russia.The Deputy PrimeMinister heads the BidCommittee. The government’s support was reiterated whenthe President met with the Evaluation Commission during itsvisit and by the participation of many government ministersin Bid Committee presentations. In addition, a FederalDecree was issued in November 2005 to express theFederal Government’s formal support to the bid, and Sochi’splans form part of the Federal Target Programme (FTP).

There are elections at all levels of government (includingPresidential) between 2007 and 2014. In view of cross-party support expressed by the State Duma, the BidCommittee has stated that the results of elections wouldnot affect Games’ preparations.

The development of the Sochi area would leave anexcellent legacy for sports and tourism. Careful planningand the implementation of strict guidelines would howeverbe required in the mountain zone as seven competition andnon-competition venues would be built within the SochiNational Park and near the Caucasus State BiosphereReserve (a UNESCO World Heritage site). A satisfactorybalance would have to be found between the economic andsports benefits and the environmental impact in themountain area.

CommunicationSochi has budgeted a substantial amount (USD 80.8million) for advertising and promotion. The bid proposes afour-year national communications plan followed by a two-year global awareness campaign. These OCOG initiativeswould supplement local and regional tourism promotions.

LEGAL MATTERS

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GuaranteesThe guarantees provided are generally of a high quality.

Any eventual shortfall would be covered by the FederalGovernment. Approximately 30% of OCOG revenues wouldbe provided through a government subsidy, included in theFederal Target Programme (FTP), which has been approvedby the Government of the Russian Federation. The BidCommittee explained that, according to Russian law,federal budgets are usually reviewed twice yearly whichwould provide opportunities throughout the preparation ofthe Games to modify this subsidy as required. In view ofthe cross-party support for the Games and the long-termcommitment to the development of the Sochi area, the BidCommittee stated that it would be highly improbable thatsuch funds would be denied.

Having reviewed all guarantees provided, the Commissiondraws particular attention to the following: preliminaryvenue use agreements have been provided for all compe-tition and non-competition venues. However, in accordancewith Russian legislation, final venue use agreements,including possible rental costs, can only be executed oncethe venue exists. The Commission highlighted the riskinvolved in not finalising potential rental costs in advance.The Bid Committee clarified that negotiations would takeplace with private owners after the election of the Host Cityand that provisions have been made in the OCOG budgetin this respect.

LegislationShould Sochi be elected as the Host City of the 2014Olympic Winter Games, an “Olympic Law” would beenacted to facilitate the organisation of the Games. AnEnglish translation of the draft of the law, which is expectedto be passed by the end of 2007, was provided to theCommission during its visit. Given the strong governmentsupport for the bid, the Commission is confident that thelaw would be passed.

Private companies would finance and construct themajority of the snow venues, both Olympic Villages and theInternational Broadcast Centre /Main Press Centre(IBC/MPC) and would be required to work within theframework and specifications of the FTP. The RussianGovernment would act as the final guarantor for allcompetition and non-competition venues.

The public opinion poll commissioned by the IOC showsthe following levels of support to host the 2014 OlympicWinter Games: 79% support in Sochi and 80% overall inRussia.

CUSTOMS ANDIMMIGRATIONFORMALITIES

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Entry to the countryThe Olympic Identity and Accreditation Card would serve asofficial access to the country, in accordance with IOCrequirements. Visas are currently only issued following arequest from authorised government entities or travelagencies, which can prove to be a complicated process.

Work permitsThe Federal Government has included a provision in theproposed “Olympic Law” to guarantee that work permitsfor temporary foreign workers coming to Russia to performOlympic functions would be issued in no more than tendays, free of any duties or taxes.

“Olympic Desks” would be created in Russian Embassiesto facilitate the smooth delivery of work permits and visasfor Olympic clients, including spectators.

Current legislation requires persons wishing to stay inRussia for a period exceeding three months to present anHIV-AIDS health certificate. In response to concerns raisedby the Commission, the Bid Committee stated that it wouldrequest that this issue be reviewed.

Importation of goodsThe temporary importation into Russia of goods andequipment required for the Olympic Winter Games wouldbe free of any duties.

The temporary importation of firearms and ammunition forbiathlon is authorised and the OCOG would liaise with NOCsto facilitate procedures.

The FTP Directorate, already established and operationalunder the direction of the Ministry of EconomicDevelopment and Trade, is responsible for the delivery ofFTP projects, including all Olympic facilities.

OCOG structure and transitionThe OCOG would be incorporated as a not-for-profitfoundation on the basis of the Olympic Law, and inaccordance with the provisions of the Candidature File,within three weeks of the law coming into force. Accordingto the draft of the law, the existing Bid Committee wouldserve as the governing body for the Games during theperiod of transition from the election of the Host City to theestablishment of the OCOG and USD 16.1 million to fundthe transition period is included in the FTP.

ENVIRONMENTAND METEOROLOGY

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World Heritage site – where, due to a recent rezoning ofSochi National Park, the construction of infrastructure fortourism and recreation is now permitted.

In addition, new road and rail links to the mountain zonewould be built in the National Park, generally following thepath of the existing road. Impact mitigation actions will betaken, including the use of environmentally friendlymaterials and construction methods.

Under the FTP, all snow venues except ski jumping will beconstructed irrespective of Sochi being awarded the 2014Olympic Winter Games.

At the time of the Evaluation Commission visit, legal actionagainst the government pertaining to the FTP anddevelopments in Sochi National Park was still pending. TheEvaluation Commission expressed the hope that continueddialogue between NGOs, the government and the BidCommittee would lead to a satisfactory solution to thisissue as soon as possible.

The Bid Committee stated that an improved version of theFTP was undergoing ecological review in accordance withrequired procedures and was due to be ratified mid-April2007. The Commission was informed that NGOs hadaccepted an invitation to take part in this ecological review(March-April) to assess the venue infrastructure develop-ment plans, and that the Russian Government hadaccepted the NGOs’ request to limit construction in thebuffer zone to the Krasnaya Polyana Olympic Village andthe sliding venue.

According to the Bid Committee, this new version of theFTP would nullify the original FTP and hence “any action bythe Supreme Court will have no effect on constructionschedules and development of Olympic venues”.

Plans and actionsSochi’s environmental plans and actions are contained inthe Russian Government’s “Federal Target Programme forthe Development of Sochi” (FTP), which will fund variousinfrastructure programmes and sustainable developmentprojects.

A portion (USD 7.1 million) of the environmental “fees”charged to developers of infrastructure projects will beallocated to the building of an environmental educationcentre and USD 8.3 million will be spent on construction-related compensation environmental measures in SochiNational Park.

Sochi 2014 plans to apply a sustainable managementsystem to the development of facilities and operations,sustainable design principles in construction and improvedmeasures for waste collection, processing and disposal.

The OCOG would work with a range of public authorities toimplement environmental plans within the framework ofRussia’s “Law on Environmental protection” and the FTP.The OCOG would also closely collaborate with the Ministryof Natural Resources on environmental evaluation, plan-ning and management. There would need to be strongcooperation between all parties to ensure efficient deliveryand operations.

For all new permanent construction projects, preliminarystudies have been carried out and full Environmental ImpactAssessments would be undertaken and audited by an eco-logical council overseen by the Ministry of Environment andinvolving NGOs, scientists and community members.

Seven competition and non-competition venues requiredfor the OlympicWinter Games would be constructed withinthe boundaries of Sochi National Park, directly impacting onapproximately 800 hectares (0.5% of the total area of thepark). Two of these venues, the Krasnaya Polyana OlympicVillage and the sliding venue, would be located in the bufferzone of the Caucasus State Biosphere Reserve – a UNESCO

FINANCE

Expenditure items USD % of total

Games workforce 279 million 18%

Technology 253 million 17%

Operational costs for sportsvenues

119 million 8%

Ceremonies and culture 98 million 6%

Advertising and promotion 80 million 5%

Transport 48 million 3%

Operational costs for OlympicVillages

39 million 3%

Contingency 171 million 11%

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OCOG budgetSochi has proposed a balanced revenue and expenditurebudget of USD 1.517 billion for both the 2014 Olympic andParalympic Winter Games based on 2006 cost estimates.The projected inflation rate is relatively high and isestimated at an average of 5.91% per annum until 2014.The impact of inflation on the 2014 budget would have tobe carefully monitored by the OCOG.

Sochi’s OCOG budget includes the following revenue items:

By taking into account the IOC’s and the Federal Govern-ment’s contributions, a total of USD 903 million (60% of thetotal projected revenue) is derived from guaranteedsources.

Sochi’s OCOG budget includes the following major expen-diture items:

The Bid Committee assured local NGOs that adequateprotection would be given to a wetlands area within theproposed Sochi Olympic Park.

Air and water qualityAir quality in Sochi is currently within World HealthOrganisation (WHO) guideline levels and the FTP includesguaranteed funding for measures to further improve andprotect air quality. Water quality is satisfactory.

MeteorologyTemperatures are satisfactory, as are humidity levels.Average precipitation frequency is low, although averagevolumes are relatively high.

Temperature increases over the next seven years areexpected to be minimal and average snow depths aresatisfactory. Sufficient snow-making capability would bein place, if required.

Average wind strength is relatively high in the afternoonsand evenings at the higher altitude snow venues, but at theski jump venue the estimated average wind strength is low.

The incidence of avalanches and landslides in themountain areas would have to be taken into account withregard to safety and construction schedules, particularlyfor road and rail infrastructure. Protection measuresagainst seasonal flooding (in the coastal Sochi area) arealready in place.

Russia has ratified the Kyoto Protocol.

Revenue items USD % of total

IOC contributions 485 million 32%

Government subsidies 418 million 27.5%

Local sponsors, officialsuppliers and lotteries

365 million 24%

Ticket sales 129 million 8.5%

Other sources 120 million 8%

SOCHI

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Financial guaranteesThe Government of the Russian Federation has guaranteedto cover any economic shortfall of the OCOG budget.Whilstprivate investments account for approximately 40% of theFTP, all Games’ projects, including those undertaken by theprivate sector, are guaranteed by the Federal Government.

The Commission pointed out that with the IOC contributionrepresenting 32% of total revenues, the OCOG budgetcould be exposed to fluctuations between the US dollar andthe Ruble. The Bid Committee stated that the OCOG wouldtake the appropriate steps to minimise this risk.

Additional commentsThe OCOG budget is heavily subsidised by the State andcontains a high contingency which provides the Commis-sion with reassurance that the proposed budget is prudent.

The Bid Committee confirmed that all transactions betweenthe OCOG and the IOC would be in full compliance with thetax exemption provisions of the Host City Contract.However, the Bid Committee was unable to confirm thatthis would also apply to transactions between the OCOGand other Olympic parties, including sponsors andbroadcasters, as detailed in the Host City Contract.

The budget is very well documented and a satisfactoryamount of supportive detail has been provided in all costcategories. The provisions made in the budget for the majorcost items appear to be sufficient when compared toprevious OlympicWinter Games. Certain expenditure itemssuch as Games’ workforce and administration could bereduced should it become necessary.

No capital investments are included in the OCOG budget.The amount of USD 98 million is budgeted for theconstruction of temporary facilities and overlay.

Non-OCOG budgetThe non-OCOG budget for capital investments is USD 8.8billion of which USD 3.6 billion (41%) would be incremen-tal to the Olympic Winter Games. USD 4.4 billion would bespent on transport infrastructure (including the airport);USD 1.37 billion on accommodation (upgrades and newconstruction); USD 1.32 billion on electricity infrastructure;USD 806 million on venue construction; USD 121 million onthe Olympic Villages; and USD 269 million on the Interna-tional Broadcast Centre /Main Press Centre (IBC/MPC).

A non-OCOG operations budget of USD 383 million, ofwhich over 70% is attributable to security, has also beenprovided.

The non-OCOG budget has been determined by the “Fed-eral Target Programme for the Development of Sochi” (FTP)under the leadership of the Ministry of Economic Develop-ment and Trade. The FTP details all projects to be carriedout within the framework of Sochi’s development and isfunded by the government of the Russian Federation, theKrasnodar region, the city of Sochi and the private sector.

MARKETING

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TicketingSochi 2014 forecasts a ticketing revenue of USD 129.4million for the Olympic Winter Games based on a sell-outrate of 82% and USD 1.1 million for the Paralympic WinterGames based on a sell-out rate of 50%. The expectednumber of ticket sales is approximately 1.7 million for theOlympic Winter Games and 291,500 for the ParalympicWinter Games. Sochi 2014 would implement an “affordableticketing strategy” to ensure maximum attendance which,in combination with the nation’s long tradition of wintersports, should lead to the rather conservative ticketingrevenue target being met. The proposed pricing policyseems reasonable and achievable when compared tocurrent prices for sports events in Russia.

Local sponsorship and licensingProjected revenue from domestic sponsorship wouldamount to USD 350 million. An additional USD 30 millionwould come from merchandise licensing programmes. Themarketing strategy aims at limiting the number of potentialsponsors to secure a more structured marketplace, moreattractive revenue levels and more effective managementof the Olympic brand.

The strong and growing Russian economy, together withthe size and financial strength of some of the potentialfuture domestic sponsors, should ensure that revenuetargets for the domestic sponsorship and licensingprogramme would be met.

Additional commentsThe OCOG budget includes USD 32.3 million for specificallytargeted activities to support the marketing programme,including ticketing.

Joint Marketing ProgrammeThe Joint Marketing Programme Agreement (JMPA) signedby the City of Sochi and the Russian Olympic Committeehas been accepted by the IOC.

A guarantee has also been provided that the OCOG and theRussian Paralympic Committee would enter into aParalympic Joint Marketing Programme Agreement on orbefore 31 July 2008.

Billboards and advertisingSochi 2014 has secured the necessary guarantees for allexisting advertising spaces (as well as those to beconstructed in the future) in the vicinity of the Sochi coastalcluster and mountain zone as well as along Olympic routes.Similar guarantees have been provided for advertisingspace on public transport and at Sochi airport as well astwo of Moscow’s largest airports – Sheremetyevo andDomodedovo.

The 2014 price for these spaces, which would be grantedto the OCOG at 2006 rates plus inflation, has been agreedby all advertising owners and would cover the period ofone month before the Opening Ceremony of the OlympicWinter Games to one week after the Closing Ceremony ofthe Paralympic Winter Games.

Rights protectionComprehensive legislation exists to protect Olympicintellectual property rights. Federal law stipulates that theRussian Olympic Committee controls the use of all Olympicintellectual property in Russia and provides specificmeasures to combat ambush marketing.

A guarantee has been provided that the Parliament (StateDuma) would enact additional legislation to furtherstrengthen sanctions against ambush marketing in theRussian Federation and, in particular, in Sochi and theKrasnodar Region, no later than 1 January 2012.

SPORTS AND VENUES

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Venue features / issuesThe Olympic Park offers a convenient and compact venueconcept for all ice sports.With both ice hockey arenas anda hockey training venue located very close to each otherand the speed skating oval and figure skating / short trackvenue in adjacent locations, athletes and the respectiveInternational Federations would be well served.

With no international-quality alpine, ski jumping or slidingfacilities in Russia, Sochi’s venue plan is very muchfocused on the long-term legacy needs of Russian athletes.As such, all snow and sliding venues would remain ascompetition and training venues post-Games. The icevenues would be mostly operated as multi-purpose sportsand entertainment centres or exhibition halls with joint useas competition and training centres. The curling venuewould become a Russian National Olympic and ParalympicTraining Centre post-Games. To reinforce this legacy, Sochihas integrated plans to construct Russia’s first multi-purpose training centre dedicated to winter sports as partof the Krasnaya Polyana mountain village.

Due to the configuration of the courses, the cross countryand biathlon venues would not be able to operatesimultaneously, which might result in scheduling difficultiesin the event of bad weather.

The Bid Committee confirmed that lighting would beprovided at the ski jumping, freestyle and sliding venues.

During the Commission’s visit, it was demonstrated thatforeign expertise and construction management consul-tancies had been included in the planning process to assistin areas where the Bid Committee lacked experience. TheBid Committee stated that this involvement would continueas required.

Sports conceptSochi offers a compact sports concept with the Sochi icecluster and the Krasnaya Polyana mountain zone, 49 kmapart. The Sochi cluster on the coast of the Black Seawould take the form of a compact Olympic Park with themain Olympic Village, all ice competition and trainingvenues (1 km/3 minutes from the village), the InternationalBroadcast Centre /Main Press Centre (IBC /MPC), theOlympic Stadium for Opening and Closing ceremonies andthe Medals Plaza all contained within a secure perimeter –a new approach for the Olympic Winter Games. TheKrasnaya Polyana mountain zone would contain anOlympic Village, all snow venues (9-15 km/a maximum of16 minutes from the mountain Olympic village), the slidingvenue (1 km/3 minutes from the mountain village) and amedia sub-centre.

Venue construction statusThe bid proposes a total of 11 competition venues, ofwhich 4 are listed in the Candidature File as existing.Based on the large amount of construction involved, theCommission considers these 4 venues as new construc-tion. Seven venues will be built irrespective of the 2014Olympic Winter Games (sliding centre, an ice hockey arena,speed skating oval, cross-country / biathlon, alpine skiing,freestyle skiing and snowboard).

An Olympic delivery agency, the FTP Directorate, hasalready been established under the direction of the Ministryfor Economic Development and Trade to manage thedelivery of all infrastructure projects for the Games asdescribed in the “Federal Target Programme for theDevelopment of Sochi” (FTP). The Directorate would beresponsible for reporting to the IOC.

OLYMPIC VILLAGES

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Location/conceptTwo Olympic villages are planned, one located in the newSochi Olympic Park for ice sport athletes and one in theKrasnaya Polyana mountain zone, located in the SochiNational Park, for snow and sliding sport athletes. The twovillages are 63 km/62 minutes apart.

The concept is good, with most athletes able to reach theircompetition venue within 16 minutes at Games time, andall ice sports athletes able to reach their venues within fiveminutes.

Due to a difference in altitude of approximately 500 metresbetween the mountain village and the venue for biathlonand cross-country, the Bid Committee has also planned tomake additional on-site accommodation available for theseathletes, free of charge.

Village developmentBoth the Sochi and mountain villages would be newlyconstructed as four-star resort hotels and would be used astourist resort accommodation post-Games. All buildingswould be a maximum of 4-5 storeys high and sufficientstorage, elevators and amenities would be provided.

Both villages would be constructed by private companies.Construction for both villages is to begin in 2007 and to becompleted by 2010. Both village projects are included inthe Federal Target Programme (FTP), which serves asguarantor for the construction of the villages. Preliminaryvenue use agreements have been provided but, inaccordance with Russian legislation, final agreements (andguarantees), including possible rental costs, can only besigned once the venue is built.

Village organisationA total of 5,600 beds would be available between the twovillages (3,000 in the Sochi village and 2,600 in themountain village), with alternative on-site accommodation

Sports experienceRussia has a long tradition in winter sports having hostedWorld Championships in speed skating, figure skating, icehockey and biathlon and has also hosted the 1980 OlympicGames. Sochi has hosted many major international events.As Russia has little experience in organising alpine events,training programmes would be required to ensure that thenecessary level of operational expertise would be reached.

Construction timelines have been set to complete perma-nent construction by 2012 for most venues in order toallow for test events to take place over a two-year period(2012 – 2014).

PARALYMPIC GAMES

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ConceptThe proposed dates for the Paralympic Games are Friday 7to Sunday 16 March.

As for the Olympic Winter Games, the Paralympic conceptwould be based on an ice cluster in Sochi Olympic Park,and a mountain zone in Krasnaya Polyana (49 km/50minutes apart). There would be two Paralympic Villages.

Paralympic athletes would use the same venues asOlympic athletes, but with biathlon and cross countrysharing the same course.

BudgetThe budget for the Paralympic Games amounts to USD70.8 million, which the Commission felt to be on the highside. The Paralympic Games budget includes embeddedcosts from other OCOG budget line items. The FederalGovernment would cover USD 47.9 million of revenue.

The Bid Committee clarified that any Paralympic Gamesshortfall would be covered by the guarantee provided bythe Federal Government.

Organising CommitteeThere would be one Organising Committee for both theOlympic and Paralympic Games which would ensure theefficient organisation of the Games. The Board of Directorswould include the President and Secretary General of theRussian Paralympic Committee. The OCOG senior man-agement structure would include a senior Paralympicexecutive who would report directly to the Board. TheOCOG would establish a dedicated Paralympic Departmentno later than two years before the Games and each OCOGdepartment would have a Paralympic representative withinits team.

(500 rooms /600 beds) available at the Nordic venue. Thelay-out of both villages is good, with equal standards ofservice to be provided in each. An internal transit systemwould operate in both villages.

Extra officials would be accommodated in 300 rooms alongthe coast and in 300 rooms at the Sochi InternationalWinter Sports Training Centre at the mountain village (USD90 for a single room and USD 100 for a double room). Thiscentre has been planned as part of the legacy of the Gamesas Russia’s first training centre dedicated to winter sports.For the coastal cluster, the Bid Committee commented thatample capacity in three star accommodation would beavailable within a 5 km radius of the village.

NOC travel costsNational Olympic Committee (NOC) and National Para-lympic Committee (NPC) delegation travel costs are in-cluded in the OCOG budget in accordance with IOC re-quirements.

Additional commentsThe Commission questioned the rationale behind thechoice of location for the mountain village at the end of theKrasnaya Polyana valley rather than a location central to allsnow sports. The Bid Committee explained that the decisionwas in keeping with the planned legacy for the area.

The Commission also felt that, should Sochi be awarded the2014 OlympicWinter Games, consideration should be givento developing the additional accommodation proposed atthe Nordic venue into a third Olympic Village.

Athletes have been involved in the initial venue andOlympic Village planning processes.

The Bid Committee clarified that the OCOG budgetcontained an allocation of USD 1.6 million for Paralympictest events in curling, Nordic and alpine skiing. In addition,other Paralympic events would be funded by thegovernment’s sports agency.

The main legacies of the Paralympic Games would be abarrier free environment in the region, including transportand accommodation infrastructure, raising social aware-ness and increasing appreciation for people with disabilitiesacross Russia. Sochi would become an accessibility modelfor the rest of the country.

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LogisticsRooms in both Paralympic Villages would meet requiredaccessibility standards in terms of the number ofaccessible rooms per accommodation facility.

The media would be accommodated in hotels andapartment-style rooms in the vicinity of the Main MediaCentre (Sochi Olympic Park) and in the mountain zone.

The Paralympic transport fleet would consist of over 1,250accessible vehicles. There would be dedicated lanes anddedicated roads in the mountains during the ParalympicGames.

Ticket holders would benefit from free public transport.

Media and communicationsThe International Broadcast Centre /Main Press Centre(IBC/MPC), to be located in the Sochi Olympic Park, wouldbe used for the Paralympic Games, as would the mountainmedia sub-centre.

The Sochi 2014 vision is to provide an integrated Gamesconcept promoting inclusiveness and universal accessibil-ity. Although Sochi’s vision and communication messagesare clearly stated in the Candidature File, no detailed infor-mation was provided to explain how these would beimplemented in the lead up to the Paralympic Games.

Additional commentsRussia organises a number of national events for athleteswith a disability every year. However, greater operationalexperience would be necessary to ensure the level ofexpertise required to host international Paralympic sportsevents.

MEDICAL SERVICESAND DOPING CONTROL

SOCHI

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Doping controlSochi has guaranteed to provide all required anti-dopingprocedures in accordance with IOC and World Anti-DopingAgency (WADA) specifications. Russia has adopted theWADA Copenhagen Declaration on Anti-doping in Sport andsigned the UNESCO International Convention Against Dopingin Sport. Sochi also proposes to engage in a campaign topromote anti-doping through national education informationprogrammes.

For the 2014 Olympic Winter Games, Sochi wouldincorporate a custom-built laboratory in the new hospital inKrasnaya Polyana. This facility would be delivered byDecember 2010 and would have the capacity to handle alltests required during the Games. The laboratory wouldremain as a legacy post-Games for both competition andtraining purposes and to meet the needs of the newWinterSports Training Centre in Krasnaya Polyana.

GeneralThe Russian Constitution guarantees that every citizen hasthe right to free health protection and medical assistance.

To further enhance Sochi’s ability to provide high-qualityhealthcare for residents and visitors, planned newhealthcare facilities as well as on-going improvements toexisting facilities are guaranteed in the Federal TargetProgramme (FTP).

Olympic healthcareIn Sochi, a variety of hospitals offering a full array ofservices and conveniently located for all venues and bothOlympic Villages would be available to meet Games’ timeneeds. To serve Olympic and Paralympic needs, threehospitals with a total of 1,215 beds have been designatedalong the coast. One hospital with 300 beds would serve asthe main hospital for athletes and officials living in thecoastal Olympic Village. To serve the mountain zone, Sochiproposes a planned, new hospital with 150 beds. EachOlympic Village would contain a 24 hour polyclinic offeringbasic medical care and would be equipped according toIOC guidelines.

During the Games, accredited physicians from participatingNational Olympic Committees (NOCs) and NationalParalympic Committees (NPCs) would be permitted toprovide medical services to their delegations, includingwriting prescriptions. NOCs and NPCs would also be able toimport and export pharmaceutical and other medical itemsduring the Games without import duties or other levies.

SECURITY

ResponsibilityThe Government of the Russian Federation has guaranteedthat it would bear the full responsibility and cost of securityfor the preparation and staging of the Olympic andParalympic Winter Games. An additional USD 32 million isincluded in the OCOG budget for equipment, privatesecurity contractors, planning, coordination, training andlaw enforcement personnel.

Safety and security personnelThe Russian police force has excellent experience inhosting major international and sports events and anumber of high-level events have been hosted in Sochi.This experience and an understanding of Olympic needswere demonstrated in the presentation made to theCommission by the proposed head of the Olympic SecurityTask Force.

The number of safety and security personnel required forsecurity operations has been estimated at 19,000 (thisnumber appears sufficient compared to past Gamesexperience). Local, regional and national security personnelwould be involved.

Command structure /OCOG roleAn Olympic Security Steering Committee (OSSC) would beestablished at ministerial level to provide strategic policy andguidance. The Deputy Minister of the Interior would serveas the Commander of the Olympic Security Task Forceresponsible for security planning and delivery.To support thistask force, a dedicated multi-agency Olympic SecurityCoordination Centre (OSCC) would be established by Pres-idential decree. The OCOG security department would beresponsible for external liaison and integration between theOSCC, the OCOG and other Olympic stakeholders.

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A clear line of command is proposed and headed by theMinister of the Interior.

Plans have been made to provide specific training to thesecurity workforce which, in addition to the acquisition bythe government of state-of-the-art security material andequipment, would provide a significant legacy to theregion’s security capability.

The Commission believes that the proposed securitymeasures would ensure safe and peaceful Olympic andParalympic Winter Games in 2014.

ACCOMMODATION

SingleUSD 2014

DoubleUSD 2014

SuiteUSD 2014

2 star 90 141 -

3 star 133 176 276

4 star 179 199 400

5 star 253 324 426

GeneralAs a well-known Russian summer resort, Sochi currentlyoffers more than 94,000 rooms within a 50 km radius,approximately 77% of which are in two star properties. Tomeet growing demand and tourist expectations, large-scale renovations are required in many establishments.

Letters of guarantee have been provided for over 57,300two to five star rooms. Of these guaranteed roomsapproximately 50% concern properties yet to be built butwhich form part of the government’s target to developSochi into a year-round, world-class resort. The FederalTarget Programme (FTP) foresees hotel renovations and theconstruction of over 19,000 new hotel rooms in the periodto 2014.

There would be sufficient accommodation for spectatorsduring the Games period.

Room ratesThe guaranteed 2014 Olympic hotel rates for five starrooms are USD 250 for a single room and USD 320 for adouble room. For four star rooms the rate is USD 162 for adouble room. The above prices also include breakfast(s)and applicable taxes.

Should room rates exceed the rates specified above, theOCOG would be responsible for paying the difference.

For other accredited clients, rates have been establishedaccording to the following formula: current rates � 1.482(CPI index) – 10% for five-star hotels or – 5% for four-starhotels.

SOCHI

24

The Bid Committee confirmed that the following rates havebeen fixed contractually in USD 2014:

Rates include breakfast(s) and all taxes.

There would be no minimum stay and no booking fees forall guaranteed rooms.

Room allocationsSufficient rooms have been secured for Olympic clients. Allmedia would be accommodated in hotels. The Main MediaCentre (MMC) in the Olympic Park would include a 600room hotel and a further 6,700 rooms are currentlyavailable in three to four star properties within 10 km ofthe proposed MMC. In addition, over 10,000 new three starrooms would be constructed within 3 km of the MMC.

In the mountains, a three to four star facility with 3,000rooms would provide accommodation close to the mediasub-centre. The Bid Committee stated that there would beno contingency for media accommodation in the moun-tains but the proximity of the coastal cluster (50 minutesaway) would allow media to reside in accommodation nearthe coast.

TRANSPORT

During the visit, the Bid Committee provided further detailon a resort planned for media accommodation in the moun-tains which would be developed based on projected sales.Should demand ultimately not meet the proposed capacity,the Bid Committee confirmed that the development wouldbe guaranteed by the government.

One thousand rooms have been allocated for the volunteerworkforce in the mountain cluster though the majority ofthis workforce (two thirds) would travel from the coastalzone by train and bus.

Additional commentsSochi’s accommodation plan relies heavily on a substantialrenovation and construction programme which is largelyguaranteed by the FTP. The plan includes major hotelupgrades to reach the level guaranteed to the IOC, forexample transforming two star hotels into five star hotels.

If accommodation plans are implemented according to thedetails provided, the Commission believes that Sochi’s2014 accommodation plan would be feasible.

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ConceptSochi’s OlympicWinter Games concept is structured as onecompact ice cluster on the coast and a snow zone locatedin Krasnaya Polyana, approximately 50 km apart andcurrently linked by a two-lane road.

By 2014 an additional three to four lane motorway and anew high capacity mountain rail line would be constructedto create a strong transport corridor between the twozones. The overall plan is fairly compact as travel timesbetween the coastal ice cluster and the mountain zonewould vary from approximately 50 to 63 minutes.

A unique feature of the Sochi concept is that the Olympichub would be centred in an Olympic Park. This closeconcentration of venues would reduce motorised transportneeds and provide travel times of less than five minuteswithin the Olympic Park.

AccessCurrent visitors to Sochi arrive principally by air and by rail.Sochi is located 1,500 km from Moscow.

The majority of clients, including approximately 70% of spec-tators, are expected to arrive by air, either directly to SochiInternational Airport, conveniently located 25 km south-eastof the city centre and 7 km from the main Olympic Village,or via Moscow. Sochi International, Russia’s seventh busiestairport, has just undergone the first phase of substantialimprovements including the construction of a new terminal.Further airport improvements are planned from 2007-2013to increase capacity and runway length, to accommodatelarger aircraft and to open up additional international directlinks to meet Sochi’s growing needs as Russia’s primarysummer resort as well as to serve the planned developmentof Sochi into a year-round destination.

SOCHI

26

and which, in addition to transport infrastructure, wouldcontain all main utility and energy facilities.

A recommendation put forward in this study was theconstruction of a temporary freight harbour with a largenumber of logistic platforms by the end of 2007 to deliverthe significant volume of building material required to allowconstruction to commence early in 2008.

Priority would be given to the development of mountainaccess roads to support venue construction thus allowingtest events to take place by mid 2012.

The Commission considers that delivery of the full coast tomountain transport and other utility systems is critical tothe success of the Games.

Olympic transport operationsIn 2014, the new coast to mountain expressway would beentirely reserved for Olympic traffic in both directions, pro-viding travel times of approximately 50 minutes betweenzones and approximately 60 minutes to the farthest moun-tain venue (sliding).

Across the Olympic project a total of 380 km of Olympiclanes would be implemented to facilitate Olympic traffic.Approximately 80 km would be implemented along theSochi coast, 40 km around and inside the Sochi OlympicPark, 150 km on the existing road and future expresswayconnecting the coast to Krasnaya Polyana and approxi-mately 110 km within the mountain zone.

All Olympic spectator, volunteer and other workforcetransport would be by public transport (rail and bus) forboth the coastal cluster and mountain zone. The fact thatthe Krasnaya Polyana Valley is a cul-de-sac, ensures thatthe majority of road and rail traffic between the coast andthe mountains would be Games-related.

Sochi’s transport plan includes the provision of “OlympicTransfer Desks” at Moscow’s Sheremetyevo and Domode-dovo international airports to facilitate smooth and effectivetransit to Sochi.

InfrastructureSochi’s transport infrastructure development is embeddedin the Federal Target Programme (FTP) which includes aUSD 4.4 billion transport and traffic improvement package.In addition to the upgrade of Sochi International Airport, themain projects in this programme which would have animpact on Games’ transport operations are the following:

– Completion of the Sochi bypass;– Improved rail link with full double track from Sochi city

centre to the Olympic Park, including the constructionof two new stations serving the Park and a newinterchange at Sochi International Airport to directlyconnect to the mountain rail line;

– Construction of a new, high capacity, double-trackmountain rail line from the coast to Krasnaya Polyana(Games’ dependent) to mainly transport spectators andworkforce;

– Construction of a new three to four lane motorway fromthe coast to the mountains;

– In the mountain zone, construction of two-lane roadsserving all competition venues, the mountain villageand the media sub-centre;

– A multi-modal integrated transport and traffic com-mand, control and communication centre (Games’dependent).

During the Commission’s visit, assurances were given thatthis ambitious transport infrastructure and equipmentprogramme would be tightly monitored and managed. TheBid Committee presented a risk analysis study carried outby external experts showing very tight delivery schedulesin this essential corridor to be constructed in difficult terrain

MEDIA OPERATIONS

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The International Broadcast Centre (IBC) and the MainPress Centre (MPC) would be located in a Main MediaCentre (MMC) in the Sochi Olympic Park and would beprivately constructed.

The new MMC would be a permanent structure whichwould become a shopping, entertainment, conference andexhibition centre post-Games.

The two-storey MPC would be 25,000 m2, and the singlelevel IBC 45,000 m2, both of which meet IOC requirements.The 12 hectare space around the MMC would house asatellite dish farm, logistics and storage areas, twotransport malls, a taxi stand and parking for 1,000 vehicles.

In addition to venue media centres, a media sub-centrewould be set up in the Krasnaya Polyana mountain zone.

The MMC complex would include a 600-room hotel formedia, and would be within 10 km of 6,700 existing threeto four star hotel rooms and within 3 km of over 10,000new rooms to be constructed. The Bid Committee statedthat 3,000 rooms have been allocated for media in themountain zone. There would be no minimum stay for themedia.

Two media shuttle services would be provided: a 24 hourshuttle within the secure perimeter of Sochi Olympic Parkand an external shuttle serving media accommodation(24 hours) and the mountain zone (regular service).

Russian labour laws and taxes would not apply to foreignmedia personnel, and there would be no duties on theimport and re-export of broadcast equipment.

The transport plan also includes provision for park and ridefacilities with 22,000 temporary parking places mostlyalong the 140 km Sochi coastline. Those coming by carwould then transfer to rail or Olympic shuttle buses tocomplete their journeys. These services would be free ofcharge for ticketed spectators and accredited workforce.

The Commission believes that the construction of a newcoast to mountain rail line and expressway, along with theimplementation of a comprehensive and dedicated Olympiclane system, would provide sufficient capacity to meetOlympic and Paralympic transport requirements and thatthe travel times stated by the Bid Committee would beachievable.

Transport legacyA third of the USD 4.4 billion transport infrastructureinvestment programme is allocated to improving mobilityalong the coast, particularly by turning the coastal rail lineinto a high capacity public transport commuter service andthus reducing road congestion.

The majority of the transport investment would bededicated to improving access to the Krasnaya Polyanamountain area. A new coast to mountain rail line,connected to the airport and coastal rail line, would providegreater capacity and public transport continuity from Sochito the mountains.

OLYMPISMAND CULTURE

SOCHI

28

Education and information programmesAn OCOG funded (USD 3.7 million) Olympic curriculumprogramme for primary and secondary schools is beingorganised in collaboration with the Ministry of Education, tocomplement existing programmes. These programmeswould seek to increase participation in physical activity andsport and teach the values of Olympism.

An “Olympic Century” programme would focus on thehistory of the modern Olympic Games and target allRussian students and teachers. This programme is fundedby the government at a cost of USD 37 million.

Youth campThe Bid Committee proposes to organise a youth campwith the participation of 2 youths per NOC. This would bea joint programme – costs shared – between the OCOG(USD 0.6 million) and the Ministry of Education.

Torch RelayThe Candidature File proposes a 100-day torch relay to beheld across Russia, starting in the far east of the countryand finishing in Sochi, to celebrate Olympic volunteerism.Plans to be submitted to the IOC for approval should Sochibe elected as the Host City include inviting volunteers frompast Olympic Games to take part in the relay.

Cultural programmeSochi’s cultural programme would draw on Russia’s veryrich culture combined with its Olympic history. The culturalprogramme would focus on Sochi’s multi-cultural historyand its historical link with Ancient Greece and wouldpromote Sochi as a year-round tourist destination.

Activities would be scheduled in the form of a four yearCultural Olympiad (2010-2013) with a different theme foreach year featuring cinema, theatre, music and the visualarts. The cultural festival during the Games would includea compendium of the most outstanding events of theprevious four years.

CeremoniesThe Opening and Closing Ceremonies would take place inthe 40,000 capacity Olympic Stadium to be constructedin Sochi Olympic Park, 1 km /3 minutes from the SochiOlympic Village and 63 km/62 minutes from the KrasnayaPolyana Village.

During the visit, the Commission questioned the rationaleof building a 40,000 capacity temporary Medals Plazaadjacent to the Olympic Stadium at a cost of USD 20million. The Bid Committee responded that the MedalsPlaza concept would contribute to creating an Olympicatmosphere within the Olympic Park and that, whilst thegrandstand would be dismantled after the Games, thestage would remain as a legacy for cultural events for theinhabitants of Sochi.

The concept of an Olympic Park located 25 km from Sochicity centre would require careful and creative planning toproduce an Olympic, festive atmosphere within the Parkand encourage the participation of local citizens.

SALZBURG

29

Dates of the Olympic Winter GamesSalzburg proposes Friday 7 to Sunday 23 February as theperiod of the Olympic Winter Games, based on optimalweather conditions, opportunities to reach young peopleand no scheduling conflicts with major events on theinternational sports calendar.

Olympic Winter Games conceptSalzburg proposes an excellent concept based around twozones (68 km/50 minutes apart) linked by a four-lanemotorway and a rail line, as well as one stand-alone venue.

All the ice venues, the Main Media Centre (MMC), the mainOlympic Village, the Olympic Stadium for Opening andClosing Ceremonies, the Medals Plaza and IOC hotels wouldbe located in Salzburg. The stand alone venue would be theexisting Schönau am Königssee sliding venue, 27 km fromSalzburg, in neighbouring Germany. The mountain zone,located in a well-established ski region south of Salzburg,would include all snow venues and an Olympic Village withdistances ranging from 53-77 km from Salzburg.

The concept is built around celebrating the “Magic of theWinter Sports”. It draws on the following:– the traditional alpine setting and cultural heritage of

the Host City;– a sustainable project using existing accommodation,

several well-established sports venues and buildingnew facilities only where there would be a legacy;

– a long tradition of drawing big crowds to winter sportsevents;

– creating a festival atmosphere during the Games period.

The Paralympic Games are well integrated into theplanning of Salzburg 2014.

Legacy and impactSalzburg’s concept is based on using a maximum ofexisting world class venues for snow and sliding sports,

coupled with the use of temporary facilities when post-Games needs do not call for permanent structures.Temporary facilities include the snow Olympic Village, partof the main Olympic Village, the speed skating venue, theski jumping Normal Hill and two ice training venues. Inaddition, there are plans to reduce spectator capacity atboth the figure skating/short track venue and an ice hockeyarena post-Games.

The low number of permanent venues and otherinfrastructure to be constructed would minimise theenvironmental impact of the Games and provide a positive,sustainable legacy.

The legacy would be centred upon:

– elevating the tradition of ice sports in Austria;– capturing the imagination of the world and enhancing

the brand of the Olympic Movement;– promoting winter sports amongst the youth of the

world by implementing specific programmes such asan “Olympic Express Ticketing Programme” and an“Olympic Youth Festival” targeting the 40 – 50 millionyouth aged 14 to 24 who live within a day’s drive ortrain ride of Salzburg and providing the opportunity toexperience the thrill of the Olympic Winter Games in asingle day.

CommunicationSalzburg has budgeted an amount of USD 23.3 million foradvertising and promotion which the Commission felt wassomewhat low to achieve Salzburg’s ambitious vision. TheBid Committee explained that additional funds would comefrom the annual promotional tourism budgets of Salzburgand Austria. In addition, the Games would be promotedannually through the internationally renowned SalzburgFestival, as well as through the many civic, cultural andsports events which take place each year in the city andthe region.


SALZBURG

30

PopulationThe Republic of Austria has a population of approximately8.1 million, Salzburg State 526,000 and the City ofSalzburg 150,000. Slight population increases are forecastfor the period to 2014.

Political structure and responsibilityAustria is a parliamentary democracy. The President of theRepublic is the Head of State and elected directly. Thenational government, formed through direct elections, isheaded by the Federal Chancellor who is appointed by thePresident. Austrian states, such as the State of Salzburg,are headed by Governors and have administrativeindependence.

National EconomyIn 2005,Austria had a GDP growth rate of 1.9% with a GDPper capita of USD 37,134 and an inflation rate of 2.1%(source: World Bank statistics).

SupportSupport for the Games has been strongly expressed by thePresident and the Chancellor of Austria, the Governor of theState of Salzburg, the Mayor of Salzburg – the leader ofthe Bid – and major political parties at the national, stateand city levels. During its visit, the Commission met withthe President of Austria and the Federal Chancellor, as wellas other ministers who reiterated that support.

The sliding events would be held at the existing Schönauam Königssee track in neighbouring Germany and theGovernment of Germany has expressed its full support.

A “Multi-Party Agreement” which outlines the specific andrespective roles and financial responsibilities of all partiesinvolved was signed in 2005. The signatory parties are theFederal Government, the State and City of Salzburg, thefour snow sport municipalities involved in the bid and theAustrian NOC.

Through an “Olympic Empowerment Law” passed in 2006,the National Parliament authorised the Federal Governmentto provide guarantees and funds to support the OlympicWinter Games in Salzburg.

The Bid Committee stated that the agreements and lawsalready in place, together with the fact that coalitionsincorporating the major political parties in Austria exist andare in power at all levels of government, would ensure thatthe results of elections between now and 2014 would notaffect Games preparations.

The public opinion poll commissioned by the IOC showsthe following levels of support to host the 2014 OlympicWinter Games: 42% in the city of Salzburg, and 61% overallin Austria.


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LEGAL MATTERS

SALZBURG

32

compensation of EUR 3.45 million (USD 4 million) to bepaid to a regular exhibition organiser at the venue, forincreased advertising costs associated with exhibitionsbeing moved throughout the period during which theOCOG would have control of the venue. Furthermore,should this company decide to permanently movecertain of its exhibitions from this venue, the venueowner has reserved the right to claim additionalcompensation from the OCOG, the amount of whichwould be determined at the end of 2014.

– An amount of USD 20 million is estimated as lotteryrevenue in the OCOG budget. In Austria all lotteries arestrictly controlled by the government and run througha limited liability company. Whilst the guarantee pro-vided from the Ministry of Finance refers to its intentionto approve the application for an Olympic-relatedlottery, the estimated revenue has not been guaranteed.

LegislationThe Bid Committee stated that the current legal frameworkin Austria would be sufficient to meet the requirements ofthe Olympic Winter Games.

OCOG structure and transitionThe OCOG would be a limited liability company and thestakeholders would be the Federal Government (49.9%),the State of Salzburg (29.1%), the City of Salzburg (10%),the four snow venue municipalities (10% jointly) and theAustrian NOC (1%).

The Supervisory Board of the OCOG, elected by thestakeholders, would designate the members of the OCOGExecutive Board.

The Bid Committee stated that the “Multi-Party Agreement”and its associated financial guarantees would ensure asmooth transition to a fully operating OCOG and thus allow

GuaranteesAll guarantees requested by the IOC were provided but notall of these fully meet IOC requirements.

Any eventual shortfall would be covered by the nominalcapital of EUR 100 million (USD 125 million) committed intothe OCOG by the Federal Government, the State ofSalzburg, the City of Salzburg and the four municipalitiesof the snow venues, as provided for in the “Multi-PartyAgreement”. The Bid Committee clarified that any shortfallin excess of the nominal capital referred to above, wouldbe jointly and severally assumed by the Federal Govern-ment of Austria, the State of Salzburg and the City ofSalzburg, irrespective of their original shares. This meansthat any of these parties are liable to cover the entire short-fall. A number of amendments to existing laws have beenmade to enable the Federal Government to assume itsresponsibilities in this regard.

Having reviewed all guarantees provided, the Commissiondraws particular attention to the following:

– No guarantee has been provided with regard to com-mercial rights for the Puch /Urstein ice hockey arena.

– The land required for the section of the Salzburg OlympicVillage that will remain as permanent housing post-Games is owned by the Ministry of Defence. Theguarantee provided by the Ministry states that it wouldmake the land available “in return for a reasonablepurchase price”, not yet agreed.Whilst the Bid Committeebelieves that agreements would be in place to guaranteeprovision of the village as planned, this could present anelement of risk.

– The venue use guarantee for the existing trade faircentre which would be used for the Main Media Centrerefers to restricted access to the venue between 1 Julyand 25 October 2013 which could be a challenge forthe fit-out of the International Broadcast Centre (IBC).The guarantee also refers to a “still-to-be-negotiated”


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Entry to the countryThe Olympic Identity and Accreditation Card would serve asofficial access to the country.

As a signatory of the Schengen Agreement, standard travelvisas issued in any of the 15 Schengen countries are alsovalid in Austria.

During the visit it was explained that discussions werecurrently on-going between signatory countries regardinga new “visa code” which they expect would simplify andreplace many of the Schengen Agreement provisions.

Further negotiations with the European Union (EU) wouldbe necessary to ensure compliance with IOC requirements,although the Commission expects that the Athens and Turinprecedents would apply in this regard.

Work permitsDuring the visit, new guarantees issued by the Austrian andGerman Governments were presented fulfilling IOCrequirements with regard to issuing work permits fortemporary foreign workers coming to Austria and Germanyto perform Olympic duties.

Importation of goodsThe temporary importation of goods and equipmentrequired for the Olympic Winter Games would be free ofany duties.

for Games preparations to continue seamlessly. The factthat the Bid Committee is structured as a private companyshould also ease the transition process as the legal entityof the OCOG would remain the same.

ENVIRONMENT ANDMETEOROLOGY

SALZBURG

34

Air and water qualityAir quality is generally within World Health Organisation(WHO) guideline levels. Levels of suspended particles in theair (PM 10) in the city of Salzburg have been above WHOguideline levels in recent years, but stricter car emissionstandards and other measures are being put in place by theEU and Austrian authorities. Water quality is satisfactory.

MeteorologyAverage temperatures are satisfactory, as are humiditylevels. At Games-time, average frequency of precipitationis high, but at snow venues average volumes are low.Windstrengths are satisfactory, as are average snow depths,with sufficient snow-making capabilities being planned forsnow venues.

Temperature increases over the next seven years areexpected to be minimal but nevertheless, the risk of lowsnow coverage during the Paralympic Winter Games, andwarm winds has been taken into account in Games plan-ning with a focus on snow-making capabilities and thecreation of snow depots.

Austria has ratified the Kyoto Protocol.

Plans and actionsSalzburg’s comprehensive and strong set of environmentalactions are based on European Union (EU), national andregional laws, and a “Sustainable Living in the Mountains”plan prepared by the bid’s Sustainability Working Group,which has served as a benchmark for bid planning.

In addition, Austria is a signatory to the Alpine Convention,a set of protocols regarding sustainable development andprotection of special areas in the Alps.

The “Sustainable Living in the Mountains” plan containsspecific environmental actions for a Salzburg OlympicWinter Games including green building principles, energyconservation measures and traffic management strategiesaimed at reducing carbon dioxide emissions.

With only three new permanent competition venues to bebuilt (out of a total of 11) and funding in place for post-Games restoration activities in affected areas, the Salzburg2014 plan minimises the direct physical impact of theGames. However, the creation of a new permanent ski runwhich forms part of the Olympic Alpine speed venue, wouldresult in the removal of a forested area.

A Sustainable Development Steering Group, comprisinggovernment departments, public authorities and NGOswould guide the implementation of the Games action planby the OCOG and local and state authorities, within theframework of Austrian legislation. Under Austrian law, allprojects with environmental impacts go through a two-stage environmental assessment process, and these havealready been completed for some venues, with othersunderway.

FINANCE

35

Salzburg’s OCOG budget includes the following major ex-penditure items:

Financial projections appear relatively low compared toprevious Olympic Winter Games, a fact that was recog-nised by the Bid Committee on several occasions. Theexplanation given by the Bid Committee was the region’sstrong tradition and experience in organising high-levelwinter sports competitions and the extensive use of exist-ing venues and transport infrastructure. The major costitems which appear to be low are temporary construction,overlay and service-related operations.

The OCOG budget includes USD 19.3 million for capitalinvestments.

Non-OCOG budgetThe USD 2.1 billion non-OCOG budget for capitalinvestments, of which USD 214.4 million (10%) would beincremental to the Olympic Winter Games, is relatively lowdue to the amount of existing venue and transportinfrastructure. USD 1.7 million would be invested in roads,railways and the upgrade of Salzburg Airport, USD 185million for the upgrade and construction of competitionvenues, USD 171 million for the upgrade and constructionof non-competition venues and USD 24 million for visitor

OCOG budgetSalzburg has proposed a balanced revenue and expenditurebudget of USD 965 million for both the 2014 Olympic andParalympic Winter Games based on 2006 cost estimates.The projected inflation rate is estimated at an average of2.2% per annum until 2014 and this should have a limitedinflationary impact on the budget at 2014 values.

Salzburg’s OCOG budget includes the following revenueitems:

The above revenue estimates seem to be conservativewhen compared to previous Olympic Winter Games. TheBid Committee acknowledged that its projected revenuebudget is in the low range and a number of potentialadditional revenue generating sources were highlightedduring the visit in the areas of sponsorship, ticketing, torchrelay, signature events and interest income.

Despite the fact that the Bid Committee has not includedany public subsidy in its projected revenue, the BidCommittee has received the commitment (as part of the“Multi-Party Agreement”) for an initial cash infusion intothe OCOG of EUR 100 million (USD 125 million) in the formof nominal shareholder capital which, in effect, acts as acontingency fund.



Local sponsors, officialsuppliers and lotteries

255 million 26%

Ticket sales 164 million 17%




Operational costsfor sports venues

142 million 15%


Operational costsfor Olympic Villages

75 million 8%

Transport 33.5 million 3.5%

Operational costsfor the Main Media Centre

18 million 2%

Contingency 42.3 million 4%

Joint Marketing ProgrammeThe Joint Marketing Programme Agreement (JMPA) signedby the Bid Committee and the Austrian Olympic Committeehas been accepted by the IOC.

A guarantee has also been provided that the OCOG and theAustrian Paralympic Committee would enter into aParalympic Joint Marketing Programme Agreement on orbefore 31 July 2008.

Billboards and advertisingGuarantees have been provided for all existing outdooradvertising spaces (as well as those to be constructed inthe future) from the three companies that control 100% ofthe outdoor advertising space in Salzburg and surroundingareas in the State of Salzburg, effectively placing alloutdoor advertising space under the control of the OCOG.Similar guarantees have also been provided for advertisingspace on public transport and at Salzburg InternationalAirport.

All above-mentioned advertising spaces shall be grantedto the OCOG at 2006 rates adjusted by inflation for theperiod from 7 January to 24 March 2014.

Rights protectionExisting trademark legislation is very strict, ensuringcomprehensive protection of Olympic intellectual propertyrights. The Bid Committee does not consider, at this stage,that supplementary legislation would be required but,should it become necessary, would take all actionsnecessary to introduce additional measures.

TicketingThe Bid Committee estimates sales of approximately 1.7million tickets for the Olympic Winter Games, generatingrevenue of USD 156 million based on a sell-out rate of85%. Similarly, the Bid Committee estimates sales of

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MARKETING

accommodation. USD 260 million have also been budgetedfor medical services and security.

The Bid Committee stated that a number of items andservices were funded in local municipal budgets as part ofAustria’s tradition of supporting winter sports and that thiswould naturally also apply to the Olympic Winter Games.Whilst recognising the amount of infrastructure currentlyin place, the Commission feels that the OCOG budget is onthe low side when taking into account the costs for Gamesoperations, overlay and temporary construction.

Financial guaranteesThrough the “Multi-Party Agreement”, the Federal Govern-ment of Austria, the State of Salzburg and the City ofSalzburg have guaranteed to cover jointly and severally anyfinancial shortfall in the OCOG budget beyond the commit-ted nominal capital of EUR 100 million.

The Commission pointed out that, with the IOC contributionsrepresenting 50% of total revenues, the OCOG budget couldbe exposed to fluctuations of the US dollar against theEuro. The Bid Committee stated that the OCOG would takethe appropriate steps to minimise this risk.

Additional commentsAs the Austrian and German Governments cannot provideradio frequencies free of charge, USD 1.4 million has beenincluded in the OCOG budget. The Commission feels thatthis is on the low side.

The Bid Committee has examined the tax implications ofstaging the OlympicWinter Games in Austria in the contextof its compliance with the tax exemption provisions of theHost City Contract and, considering the Athens and TurinGames precedents, is of the opinion that there would beno adverse direct or indirect tax implications for the IOCand other Olympic related partners.

approximately 258,000 tickets for the Paralympic WinterGames, generating revenue of USD 8.5 million based on asell-out rate of 50%. The Bid Committee has set 2014Olympic Winter Games ticket prices in line with compara-tive ticket sales for other prime events in Austria.

The Bid Committee’s ticketing strategy has two objectives:to produce sold-out events and fulfil the bid’s vision toreconnect youth to the Olympic Winter Games.

Local sponsorship and licensingProjected revenue from domestic sponsorship amounts toUSD 236.5 million with an additional USD 22 million fromlicensing merchandise programmes. The Bid Committeebelieves its sponsorship target is conservative when con-sidering recent Olympic sponsorship revenue perform-ances and Austria’s strong tradition in winter sports.

Additional commentsThe OCOG budget includes USD 7.9 million for mediaadvertising to support its local marketing plan, whichappears to be relatively low. The Bid Committee explainedthat it expects to benefit substantially from annual nationaltourism promotions by the federal and regional govern-ments which form an integral part of existing strategies topromote Austria as a traditional winter sports country.

Sports conceptSalzburg offers a compact sports concept with two mainzones and one stand-alone venue. One zone in the city ofSalzburg would include all ice venues, the main OlympicVillage, the Main Media Centre (MMC), the OlympicStadium for the Opening and Closing Ceremonies, theMedals Plaza and IOC hotels. The second zone would belocated in the mountains within the municipalities ofBischofshofen, Flachau, Flachauwinkl, Zauchensee andRadstadt/ Altenmarkt (53-77 km south of Salzburg) andwould include all snow venues as well as an OlympicVillage. The existing stand-alone sliding venue is locatedin neighbouring Germany in Schönau am Königssee (27 km/25 minutes from the Salzburg Olympic Village).

With the exception of the men’s Alpine speed and snow-board /half pipe venues, all snow venues already exist.

Venue construction statusOut of a total of 11 venues, 7 exist (3 requiring permanentwork), 3 would be constructed as new permanent venuesand 1 would be a totally temporary venue.

Three new ice venues are planned:

– Ice Hockey arena in Salzburg Puch Urstein – a perma-nent arena, which the Bid Committee confirmed duringthe visit would be completed by 2011, and which wouldbe used by Salzburg’s ice hockey team after the Games.

– Figure skating and short track venue (SalzburgLiefering) – a 12,000 seat permanent arena which theBid Committee confirmed during the visit would becompleted by 2012.

Plans to reduce the capacity of both these venues after theGames are in place.

– Speed skating venue – a 7,000 seat temporary arenato be completed in 2013.

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SPORTS AND VENUES

OLYMPIC VILLAGES

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Location /conceptTwo Olympic villages are planned, one in the city ofSalzburg for the ice and sliding sports athletes, and one inthe Radstadt / Altenmark snow zone for the snow sportsathletes. The two villages are 68 km/50 minutes apart.

The concept is good as all athletes would be able to reachtheir competition venues within 30 minutes, with a largemajority able to reach their venues within 15 minutes.

Village developmentThe Salzburg village would be located on an existing mili-tary academy that would be renovated for the Games andsupplemented by newly built permanent and temporary struc-tures. The accommodation would consist of wooden, alpinecabin style structures of two storeys, arranged in clusterswithin the village. They would feature ample storage space,sufficient amenities and contemporary design. Post-Gamesthe renovated structures would be used by the military andthe permanent structures sold as social housing.

The construction and rental costs related to the mainOlympic Village have not been clearly stated. For furtherdetails, please refer to the “Legal Matters” section of thisreport (Guarantees).

The snow village accommodation units would becomprised of the same temporary alpine cabin styleclusters as described above. A feature of the village wouldbe the 1,000 year-old Castle Tandelier (to be renovated bythe Ministry of Education) as the centre of the internationalzone. Post-Games, the renovated castle would continue tooperate as a youth sport campus.

For the permanent works to be carried out in both villages,construction is set to begin in 2010 and finish in 2013. Alltemporary construction in both villages would be financedby the OCOG.

Venue features / issuesThe homologation of the ski jumping venue at Bischofs-hofen is due to be renewed in 2008 and plans are in placeto upgrade facilities, including replacing the existing lift withrolling stairs. Lighting has recently been added to the venueand would be increased for the Games. The ski jumpingNormal Hill required for the Games would be a temporaryconstruction.

Taking into account their close proximity, the BidCommittee acknowledged that careful planning would berequired to ensure distinct access routes to both the snowOlympic Village and the cross country and biathlon venue.

Sports experienceAll existing snow and sliding venues are of a high standardwith very experienced staff and a considerable number ofinternational competitions includingWorld Cups andWorldChampionships have been held at these venues. Austriaalso has experience in organising ice events at aninternational level.

During the visit, the Bid Committee confirmed that testevents would take place during the 2012-2013 winterseason to avoid holding tests for snow sports during thesame season as the Games. Existing events on the sportscalendar would be used as test events, thus reducing thebudget.

PARALYMPIC GAMES

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ConceptThe proposed dates for the Paralympic Winter Games areFriday 7 to Sunday 16 March. Paralympic athletes woulduse the same venues and the same villages as Olympicathletes.

BudgetThe total budget for the Paralympic Games amounts to USD27.6 million, including the USD 5 million marketing rightspayment to IPC. Therefore the operational budget amountsto USD 22.6 million with additional Paralympic costsembedded in the overall OCOG budget. Paralympicrevenues do not include any direct government grants. TheBid Committee clarified that any Paralympic Gamesshortfall would be covered by the same mechanism as theOlympic Winter Games.

Organising CommitteeThere would be one Organising Committee for both theOlympic and ParalympicWinter Games which would ensurethe efficient organisation of the Games.The OCOGwould havea Paralympic Department with a Senior Vice-President re-porting the Games Chief Executive Officer. The ParalympicDepartment would include qualified staff assigned to eachmajor functional area of the Games.The National ParalympicCommittee (NPC) of Austria would be represented on theOCOG Supervisory Board.

LogisticsAthletes and officials would be accommodated in twovillages, one in Salzburg for the ice sports athletes, andone in Radstadt /Altenmarkt to serve snow sports athletes.

Both villages would be fully accessible, in accordance withthe Federal Disability Equality Act and the AustrianStandards. There would be a sufficient number of barrier-free buses to transport NPC delegations, Games officials,the Paralympic Family and the media. In addition, NPCs

Environmental impact to the snow village site would beconsiderably reduced by the use of temporary structuresand planned restoration of the site to its natural conditionafter the Games.

Village organisationA total of 6,150 beds would be available between theSalzburg and snow villages. During the visit, the BidCommittee re-evaluated the distribution of beds betweenthe two villages and confirmed that all snow sport athletesand officials accredited to stay in the village would have abed in the snow village. This would be achieved by reallo-cating a number of the temporary residential structuresplanned for the Salzburg village to the snow village.

Equal levels of service and amenities would be provided inboth villages and internal transit would be provided byshuttle buses.

NOC travel costsNational Olympic Committee (NOC) and National Para-lympic Committee (NPC) delegation travel costs have beenincluded in the OCOG budget, in accordance with IOCrequirements.

Additional commentsAthletes were consulted and contributed to the planningand design of the Olympic Villages and athletes wouldcontinue to be involved as the villages are developed andconstructed.


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GeneralThe Federal Government creates the guidelines forhealthcare services, while it is the responsibility of therespective states to administer those services. Funding forhealthcare in Austria is the joint responsibility of the FederalGovernment and the state authorities. Approximately 98%of the Austrian population are covered by social insurance.There are 30 hospitals located in the State of Salzburg thatprovide a high level of healthcare.

Olympic healthcareTo provide medical services to Olympic and Paralympicaccredited clients, two hospitals have been designated witha total of 1,689 beds. Both hospitals are convenientlylocated to serve both the ice and mountain zones. Eachhospital maintains a full array of services and equipment.

Each Olympic Village would contain a polyclinic offering24-hour basic medical care and would be equippedaccording to IOC guidelines.

During the Games period, doctors and health professionalsfrom National Olympic Committees (NOCs) and NationalParalympic Committees (NPCs) (that are officially licensedin their own country) would be allowed to provide medicalservices to their delegations. NOCs and NPCs would also beable to import and export medical items without importduties or other levies.

Doping controlSalzburg would provide all required anti-doping proceduresand facilities in accordance with IOC andWorld Anti-DopingAgency (WADA) specifications. Austria has signed theWADA Copenhagen Declaration on Anti-doping in Sport. Atthe time of the Commission’s visit to Salzburg, the UNESCOInternational Convention Against Doping in Sport had notbeen signed. However, the Bid Committee reported thatlegislation had been introduced in the Austrian Parliamentconcerning this matter.

would be able to choose between vehicles with dedicateddrivers and vehicles that could be driven by a person witha disability.

All rail rolling stock and public buses to be used during theParalympic Games would be fully accessible.

Media and communicationsWhile bid plans provide for a media centre at each of thefive Paralympic venues, but no Main Media Centre (MMC),the Bid Committee stated that a small but fully operationalMMC could be configured, if necessary, in the same venueas for the Olympic Winter Games.

“Equality of experience” is the driving vision of the 2014Paralympic Winter Games and it is at the centre of itscomprehensive communications strategy.

Additional commentsDuring the visit, the Bid Committee confirmed that testevents would also be organised for wheelchair curling andice sledge hockey. The main legacies would be related toincreasing awareness of disability-related issues in generaland sports opportunities for persons with disabilities inparticular.

SECURITY

41

ResponsibilityThe Austrian Government has guaranteed that it wouldbear the full responsibility and cost of security for thepreparation and staging of the Olympic and ParalympicWinter Games. For the sliding competitions in Schönau amKönigssee, the German Government has guaranteed totake all necessary measures to safeguard the Games.

An additional USD 18.5 million is included in the OCOGbudget for private security contractors, equipment, plan-ning, coordination and fire services at Olympic venues.

Safety and security personnelThe Austrian police force has a great deal of experience inorganising major public, sports and cultural events in theSalzburg area. Furthermore, Austria is co-hosting the Euro2008 Football Championships.

The number of security personnel planned for the Games(4,400) is significantly lower than for previous OlympicWinter Games. The Candidature File provides littleinformation as to how the security personnel would bedeployed both in Austria and Germany (sliding venue).During the Commission’s visit, representatives from theMinistry of the Interior described the normal securitymeasures in place during international sports events andexplained that during the Games, the cumulative number ofsecurity personnel would reach 11,000.

Command structure /OCOG roleAn Office of Olympic Security (OOS) would be set up,comprising personnel from all major security agencies, toplan and coordinate security operations. The head of theOOS would report directly to the Ministry of the Interior andthe OOS would be integrated into the OCOG security board.

Austria has a single police force which, with its experienceof securing major international events, would ensure that asingle command structure would be implemented during

The Salzburg Bid Committee proposes a temporarylaboratory 5 km from the Salzburg Olympic Village. Thelaboratory would be equipped, staffed and administered tomeet WADA specifications. The existing WADA-accreditedlaboratory located near Vienna would recruit and train thestaff required for the laboratory in Salzburg, as well asacquire the equipment necessary to operate the facility forthe 2014 Games.

The Bid Committee indicated that it would reach anagreement with Germany by the time of the Games in orderto allow the OCOG to carry out anti-doping procedures inGermany.

Salzburg also proposes an anti-doping educational andawareness programme during the Games.

ACCOMMODATION

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GeneralThere are over 67,000 rooms within a 50 km radius of theCity of Salzburg and approximately 14,700 within a 50 kmradius of the snow village. Of this total, approximately38,000 rooms are of three to five star quality. Salzburg isa popular tourist destination in the Alps with manytraditional, family-run hotels.

At the time of the Commission’s visit, letters of guaranteehad been received for 22,316 rooms (slightly below IOCrequirements) in more than 1,400 properties of differentsizes. Thirty-three percent of rooms would be in propertieswith less than 20 rooms. Forty-six percent of rooms wouldbe in four and five star accommodation.

There would be sufficient accommodation for spectatorsand visitors during the Olympic Winter Games.

Further accommodation is also available in other Austrianprovinces and neighbouring countries.

Room ratesThe guaranteed 2014 Olympic hotel rates are USD 265 fora four-star single / double / twin room and USD 295 for afive star single / double / twin room, including breakfast(s)and all taxes and booking fees.

Should room rates exceed the rates specified above, theOCOG would be responsible for paying the difference.

For other accredited clients, rates have been calculatedaccording to the following formula: room rate for the 2006– 2007 winter season + 20% supplement + inflation until2014 (approximately 2.5% per year).

the Games. Austrian and German police forces regularlycooperate and work under a unified single command dur-ing international sports events. This system will be furthertested during the Euro 2008 Football Championships.

Austria’s security forces are well trained and equipped and,if sufficient personnel were made available, would becapable of ensuring safe and peaceful Olympic andParalympic Winter Games in 2014.

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The Bid Committee also stated that most volunteers wouldbe locally sourced and would therefore not require accom-modation but that it would be able to provide at least 2,000rooms in two-star accommodation for other workforce(volunteers, drivers etc.) close to the venues.

Additional commentsThe various tourism entities in the region use a jointdatabase reservation system which would be used for allclients at Games-time. The OCOG would be responsible formanaging accredited client needs and interfacing withtourism agencies through the same database for theallocation and reservation of rooms.

Whilst Salzburg has an abundance of existing accommo-dation, challenges would include successfully managing themany properties included in the bid, allocating rooms withprice consistency, as well as managing transport betweenthem during the peak winter season in the mountain area.

The Bid Committee confirmed the following minimum andmaximum rates in USD 2014, including breakfast(s) and alltaxes and booking fees:

During the visit, the Bid Committee stated that prices hadbeen fixed in USD at the November 2006 exchange rateand confirmed that any cost increase due to fluctuationsbetween the Euro and the US dollar would be borne by theOCOG for all clients.

A minimum stay policy of five days would be applied witha flexible starting date.

Room allocationsIn the Candidature File, it is stated that the media wouldbe accommodated in hotel clusters totalling 7,700 roomsand in three temporary media villages with 2,000 rooms,and a university campus village with 328 rooms.

During the Commission’s visit, the Bid Committee statedits goal was to accommodate all media in hotels (as well asin 328 university campus rooms) and that temporary mediavillages would only be constructed if required. In this event,the room rate for any temporary media accommodation isguaranteed at EUR 210 per night.

The location and large number of media hotels (over 650)constitute a transport challenge and would require carefulplanning with dedicated media transport hubs. The BidCommittee stated that all media would be accommodatedwithin 1 km of the nearest transport hub.

Minimum –single /double /twin room

USD 2014

Maximum –single /double /twin room

USD 2014

5 star 205 498

4 star 81 378

3 star 63 241

TRANSPORT

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South of the proposed snow venues, the A10 motorwaycrosses the Alps to link Salzburg to Southern Austria, Italyand Slovenia. A new tunnel, currently under construction,would increase capacity to a total of four lanes by 2010.

Olympic transport operationsWithin the city of Salzburg, accredited Olympic clientswould have short travel distances enhanced by approxi-mately 10 km of urban Olympic and reserved bus lanes andapproximately 11 km of Olympic lanes on the A1 motorwaylinking Salzburg Airport to the Main Media Centre.

Approximately 60% of spectators and workforce areexpected to travel by rail. For spectators travelling by car,20,000 temporary park and ride places would be providedwhich could present a traffic management challenge.

Access to the snow zone would be a combination of rail,park and ride facilities and a shuttle bus system. Tofacilitate Olympic mountain traffic, approximately 55 km ofOlympic lanes would interconnect the snow venues, but noOlympic lanes are planned on the section of the motorwayconnecting the ice and snow zones.

Ticketed spectators would benefit from free publictransport.

Attendance at the four snow venues of Altenmarkt-Radstadt, Zauchensee, Flachau and Flachauwinkl couldreach 100,000 spectators per day and potentially more ondays when several events are held in a specific venue. Dueto this very high spectator capacity, a plan to reducemotorway traffic as well as reducing the combined venuecapacities in line with total transport capabilities in 2014may be required.

Based on the transport operations plan presented duringthe visit, and provided that the above-mentioned measuresare taken for the snow venues, the Commission believes

ConceptSalzburg’s OlympicWinter Games concept is structured asan ice zone in the city and a mountain snow zone inter-connected by existing motorway and rail lines, as well asa stand-alone sliding venue in neighbouring Germany.

Within the Salzburg zone, travel times between the OlympicVillage and the ice competition venues would be under15 minutes and the travel distance and time from Salzburgto the furthest snow venue are respectively 77 km/55minutes. Sliding athletes would be able to reach theirvenue within 25 minutes.

AccessSalzburg International Airport is conveniently located 1 kmfrom the Salzburg Olympic Village and 69 km from thesnow village.

Mainly served by charter flights, Salzburg InternationalAirport has sufficient capacity to handle the majority ofOlympic travel demands. Munich International Airport(180 km away in neighbouring Germany) could also be used.

Located in the centre of Europe, Salzburg is easilyaccessible by car. Approximately 10 million people livewithin a 2-hour drive of the city and another 50 millionwithin 4 hours.

Salzburg is also well connected to national andinternational rail services.

InfrastructureSalzburg’s transport infrastructure is well developed andon-going investments of approximately USD 1.07 billionare planned to expand rail and motorway transport capacitybetween 2007 and 2014. These developments include theexpansion of the Salzburg suburban rail system (S-Bahn)and an extensive rehabilitation of Salzburg’s main trainstation.

MEDIA OPERATIONS

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The Main Media Centre (MMC), containing the single-levelInternational Broadcast Centre (IBC) and Main Press Centre(MPC), would be located in an existing exhibition centre inSalzburg, adjacent to the curling venue. The building wouldcontinue to operate as an exhibition centre after theGames.

The planned MMC indoor space is 53,000 m2, withsufficient outdoor space available for a satellite farm,broadcast compound and other services.

The planned indoor space does not meet IOC requirements(40,000 m2 for the IBC and 26,000 m2 for the MPC), but theBid Committee stated that the extra space required couldbe provided in temporary structures on the site.

The Bid Committee stated that, if necessary, a mountainmedia centre could be created by expanding the Flachauvenue media centre.

Major media transport hubs would be located at the MMCin Salzburg, and at Flachau in the mountain zone. Therewould be a 24-hour shuttle bus service between the majormedia transport hubs, media accommodation hubs,Olympic villages and competition venues.

A minimum stay policy of five days would be applied witha flexible starting date.

Foreign media would not be subject to Austrian taxes orlabour laws, and the temporary importation of broadcastequipment would be free of customs duties.

that travel times stated by the Bid Committee areachievable and that Olympic and Paralympic transportrequirements would be fully met. However, the Olympic andParalympic transport operations budget of USD 33.5 millionappears low.

Transport legacyHosting the 2014 Olympic Winter Games would contributeto accelerating on-going transport infrastructure develop-ments.

OLYMPISMAND CULTURE

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Torch RelaySalzburg’s intention is to visit eight of the host sites ofprevious Olympic Winter Games in the Alps. The BidCommittee acknowledged that IOC Executive Boardapproval of this proposal would be required.

Additional commentsIn view of the activities proposed, the Commission feelsthat the culture and ceremonies budget of USD 33.8 millionappears low. The Bid Committee explained that additionalfinancing would be derived from two major national fundsestablished by law in Austria to promote tourism andculture and that the OCOG would apply a portion of thenominal capital committed by its stakeholders to thecultural programme of the Games. The Bid Committeetherefore believes that up to USD 177 million could beavailable for cultural activities.

Cultural programmeSalzburg plans to stage a cultural festival designed byyouth for youth. A particular feature of the programmewould be to create a youth and family ticket marketingprogramme targeted at the 16 nations surrounding Austria(150 million people).

Workshops for young people in music, film, television,photography, dance and folk art, would be organised in theyears leading up to the Games and, drawing on theexperience of the annual “Salzburg Festival”, Salzburgintends to create a programme that would span the fullspectrum of the arts.

CeremoniesThe Opening and Closing Ceremonies would take place inan existing football stadium that is currently undergoing ex-pansion from 16,000 to 31,500 seats to host the Euro2008 Football Championships.The stadium is located 2 km/5 minutes from the Salzburg Olympic Village and 70 km/50 minutes from the snow village.

Salzburg’s plan for the Medals Plaza is to construct atemporary platform spanning the Salzach River withspectacular views of the city. The capacity of the platformwould be approximately 7,000.

Education and information programmesIn 2006 the Bid Committee launched the first phase of aneducational programme to promote Olympic Ideals in theSalzburg State school system. Plans are in place to expandthe programme country-wide by 2008.

In the two years leading up to the Games, the programmewould be complemented by a team of travelling Olympiansas well as field trips to the Host City allowing schoolchildren to witness preparations for the Games. Theseactivities would be funded from the non-OCOG budget.

PYEONGCHANG

47

already established the legal framework for all Gamesplans and these are reflected in the Korean Govern-ment’s 3rd National Comprehensive Territorial Plan tobring economic development to the region.

– To establish a sustainable plan for the region based onsound environmental policies and sustainable infra-structure projects.

– To continue working towards reconciliation on theKorean peninsula.

The Paralympic Games are well integrated into theplanning of PyeongChang 2014.

Legacy and ImpactThe Olympic Winter Games would act as a catalyst toachieve the above objectives. The development of thePyeongChang area will take place irrespectively of the2014 Olympic Winter Games, with the exception of thefacilities for sliding and speed skating. The KoreanGovernment and Gangwon Provincial Government havealready committed to supporting and implementingsignificant infrastructure work. The following infrastructureprojects are currently taking place:

– road and high speed rail projects (access to Jungbong,and 115 km of high speed railroad linking Seoul toPyeongChang and Gangneung);

– construction on some venues such as the Nordic cen-tre (biathlon, cross country skiing and ski jumping) in theUSD 1.3 billion Alpensia Resort which would also includethe main Olympic and media villages and IOC hotels.

In line with its objective to develop winter sports, and takinginto consideration optimal post-Games use of the venue,PyeongChang would relocate a temporary ice hockey rink

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PYEONGCHANG


Dates of the Olympic Winter GamesPyeongChang proposes Friday 7 to Sunday 23 February asthe period of the Olympic Winter Games, based on thedates of previous Games, optimal weather conditions, thelow number of international conferences and events inKorea at that time and the school holiday period.

Olympic Winter Games conceptPyeongChang proposes an excellent concept based aroundtwo zones (37 km/25 minutes apart, linked by a four-lanemotorway) and two stand-alone venues. Core Gamesactivities would be based in the mountain zone and includemost snow venues, the sliding venue, the Main MediaCentre (MMC), the main Olympic Village, the ski jumpingvenue (site of the Opening and Closing Ceremonies),the Medals Plaza and IOC hotels. The Gangneung coastalzone would include all ice venues and an Olympic Village.The two stand-alone venues would be Jungbong (alpinespeed events) and Bokwang Phoenix Park (snowboard andfreestyle) both approximately 30 minutes from thePyeongChang Olympic Village.

The concept is built upon a strong vision for the region’sfuture, with five objectives:

– To provide optimal conditions for the athletes and otherparticipants with athlete travel times in 2014 of lessthan 30 minutes to all venues and 90% of athletes ableto reach their venues within ten minutes.

– To create a legacy plan which would increase aware-ness and the participation of young people in wintersports in Korea, thus working towards reducing thegap with other winter sports nations.

– To ensure Games planning is embedded in the long-term regional and central governments’ plans todevelop tourism and turn the region into a hub for win-ter sports in Asia. Both of these governments have

from Gangneung to the University of Wonju where thedevelopment of ice hockey in Korea would be concentrated.

An Olympic Legacy Development Research Centre wouldmanage an endowment fund of USD 70 million to beestablished and funded by the public and private sectors.

Studies on the effects of the Games have been conducted,according to which the Games would leave a positiveeconomic legacy for the region and country and couldproduce approximately 200,000 new jobs.

CommunicationPyeongChang has budgeted a substantial amount (USD 73.8million) for advertising and promotion including a compre-hensive three-phase communications plan between 2007and 2014 to encourage national and international interestin the Olympic Winter Games.

PopulationThe Republic of Korea has a population of approximately 48million, Gangwon Province 1.5 million, PyeongChang45,000 and Gangneung (ice venues) 250,000. Slightpopulation increases are forecast for the period to 2014.

Political structure and responsibilityKorea has a presidential republic system of government,with the President, the National Assembly and provincialadministrations sharing powers and responsibilities. All areelected by direct vote. The President is the Head of Stateand head of government.

National economyIn 2005, Korea had a GDP growth rate of 4% with a GDPper capita of USD 16,306 and an inflation rate of 2.8%(source: World Bank statistics).

SupportStrong support for the Games has been expressed by thePresident, the Prime Minister, major parties in the NationalAssembly and by all levels of government. During the visit,the Commission met with the President, the Prime Ministerand other government representatives, as well as membersof the opposition party, who stated that results of electionsat all levels (including Presidential) scheduled between2007 and 2014 would not affect Games’ preparations. ThePresident also stated that hosting the Games was a“number one agenda” for Korea. The National Assemblyhas formed a Government Support Committee to facilitatecommunication and close cooperation between publicinstitutions and the Bid Committee.

The national government, Gangwon Province and the localmunicipalities would be jointly responsible for the financingof venues and significant infrastructure projects. Therelevant cities would be responsible for venue construction.

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LEGAL MATTERS

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50

GuaranteesThe guarantees provided are generally of a high quality.

Any eventual shortfall would be covered by the nationalgovernment. The shortfall guarantee provided with theCandidature File specifies that National Assembly approvalwould be required. During the visit, the Bid Committeeprovided the Commission with an English translation of the“Support Resolution” from the National Assembly, in whichit describes hosting the 2014 Olympic Winter Games as a“significant task of national importance” and extends itsfull support to PyeongChang 2014. On this basis theCommission believes that any shortfall would be coveredby the government. This was further supported in meetingswith government representatives and the leader of theopposition.

LegislationThe Bid Committee believes that the current legalframework in Korea is sufficient to organise the 2014Olympic Winter Games but the National Assembly wouldnevertheless pass a “Special Act” immediately after theelection of the Host City to assist the OCOG in implementingits plans. Having received an English translation of the draftof the “Special Act” during the visit, the Commissionconsiders this Act to be an additional and essential legaltool to provide the juridical framework necessary to fulfilIOC requirements. That being said, the Commission isconfident such an act would be passed, based on theimplementation of similar special acts for the 1988 SeoulOlympic Games and the 2002 FIFA World Cup.

During the visit it was confirmed that a specific clausewould need to be added to the “Special Act” to guaranteethat broadcasters and journalists would have no tax liabilityin Korea.

The public opinion poll commissioned by the IOC showsthe following levels of support to host the 2014 OlympicWinter Games: 91% support in PyeongChang, and 83%overall in Korea. This public support was clearlydemonstrated during the Commission’s visit.


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Entry to the countryThe Olympic Identity and Accreditation Card would serve asofficial access to the country, in accordance with IOCrequirements.

Work permitsThe Korean Government has guaranteed that work permitsfor temporary foreign workers coming to Korea to performOlympic duties would be issued within seven days, free ofany duties or taxes.

Importation of goodsThe temporary importation into Korea of goods andequipment required for the Olympic Winter Games wouldbe free of any duties.

Temporary import/export permits for biathlon firearms andammunition are delivered by the National Police Agencyand, as for previous sports events held in Korea, theprocedure for obtaining these permits would be facilitatedby the OCOG.

OCOG structure and transitionThe Bid Committee confirmed that the OCOG would beincorporated before the enactment of the “Special Act” asa not-for-profit foundation under the Korean Civil Code. Thedivision of Games’ roles and responsibilities are clearlydefined.

A high proportion of OCOG staff would be seconded fromgovernment entities involved in the bid and should ensurea smooth transition from the bid to the OCOG.

ENVIRONMENT ANDMETEOROLOGY

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Air and water qualityAir quality is generally within World Health Organisation(WHO) guideline levels, although the amount of suspendedparticles in the air (PM10) in Gangneung has generally beenabove the guideline levels over recent years.Water qualityis satisfactory.

MeteorologyAverage temperatures are satisfactory, as are humiditylevels. Precipitation is relatively low, as are average windspeeds.

Temperature increases over the next seven years areexpected to be minimal. Average snow depth is consideredsatisfactory and sufficient snow-making capability wouldbe in place. Generally minor flooding frequently occurs insummer months and flood response mechanisms are inplace to reduce impact with regard to access andconstruction.

Korea has ratified the Kyoto Protocol.

Plans and actionsPyeongChang’s environmental programme is based on a“New Green Plan”, which places strong emphasis on sus-tainability, and a comprehensive set of actions and mitiga-tion measures designed to reduce and counter-balancethe impact of the Games.

Major actions in the Plan include the expansion of thepublic transport system, the increased use of renewableenergy and natural energy in design and construction, anenvironmental management system and an educationprogramme.

Contractors for the Games would be required to complywith green supply and construction principles and publicinstitutions involved in the Games would have to purchasecertified green products.

The Korean Ministry of the Environment would providesignificant support, through its regional environmentalmanagement office and, together with Gangwon Province,would be responsible for supervising and managing Gamesenvironmental issues. An OCOG environment committeewould also be established to monitor and supervise theconstruction and operation of Olympic facilities. Therewould need to be close cooperation between all parties toensure efficient delivery and operations.

All Games venue developments have been subject to a Pri-or Environmental Review and Mitigation Programme. Full en-vironmental impact assessments would be carried out, andall venues would be subject to environmental monitoring.

The site of the alpine speed events at Jungbong wouldhave a direct impact on approximately 0.6 km2 of forest.Impact mitigation measures, including transplanting andreforestation of twice the affected forest area, andavoidance of areas containing protected species, would beimplemented.

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PyeongChang’s OCOG budget includes the following majorexpenditure items:

All critical budgetary items have been well analysed anddocumented. In comparison to previous Olympic WinterGames, the budgets for the major cost items appear to berealistic whereas certain expenditure relating to servicessuch as catering, logistics and waste management appearto be rather low. The Games workforce would be heavilysupported by the public sector, which would provide a largepercentage of the workforce through secondments.

No capital investments are included in the OCOG budget.The amount of USD 91 million is budgeted for theconstruction of temporary facilities and overlay.

Non-OCOG budgetAn analytical financial plan has been submitted to supportthe capital investments required for the construction ofOlympic-related venues and infrastructure by the variouslevels of government (88%) and private companies (12%).The Bid Committee stated that out of the total capitalinvestment costs of USD 7.1 billion, USD 4.9 billion relate

OCOG budgetPyeongChang has proposed a balanced revenue andexpenditure budget of USD 1.257 billion for both the 2014Olympic and ParalympicWinter Games based on 2006 costestimates. The projected inflation rate is estimated at anaverage of 2.8% per annum until 2014 which should nothave a significant impact on the 2014 budget.

PyeongChang’s OCOG budget includes the followingrevenue items:

* including USD 100 million for workforce

OCOG revenue projections appear to be reasonable, wellanalysed and supported by the strength of the Koreaneconomy.



Local sponsors, licensing,official suppliers and lotteries

335 million 27%

Ticket sales 206 million 16%

Government subsidies 145 million* 11%





Ceremonies and culture 102 million 8%

Operational costsfor sports venues

96 million 8%

Operational costsfor the Main Media Centre

80 million 7%

Advertising and promotion 78 million 6%

Operational costsfor Olympic Villages

56 million 4%

Transport 45 million 4%

Contingency 68 million 5%

to transport infrastructure, USD 565 million to competitionvenues and the remaining USD 1.6 billion to villages andaccommodation. The amount of USD 607 million (8.5% ofthe total capital investment plan) would be incremental tothe Olympic Winter Games.

Although not fully reflected in the non-OCOG operationalbudget, it was confirmed that different levels of nationaland regional government have provided guarantees thatsupport Games services (such as security, transport andmedical services) would be provided to the OCOG free ofcharge. The Bid Committee stated that no extra burdenshould be placed on the OCOG.

Financial guaranteesThe Korean Government has guaranteed that it would actas the ultimate financial guarantor to cover any shortfall inthe OCOG budget. Bearing in mind that the IOC’s estimatedfinancial contribution represents approximately 40% ofrevenues, the Commission emphasised that the OCOGbudget could be heavily exposed to the fluctuation of theUS dollar against the Korean Won. The Bid Committeeconfirmed in writing that any future adverse impact on itsrevenue due to currency fluctuations would be covered bythe national and regional governments.

Additional commentsBased on well supported and documented assumptionsand a high level of public support, the Commission believesthat the OCOG budget is reasonable and reliable.

The Bid Committee has also confirmed that all necessarytax legislation with regard to transactions between theOCOG, the IOC and other Olympic related parties would beincluded in the “Special Act” to be passed by the NationalAssembly should PyeongChang be elected to host the 2014Olympic Winter Games.

MARKETING

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Joint Marketing ProgrammeThe Joint Marketing Programme Agreement (JMPA) signedby the Bid Committee and the Korean Olympic Committeehas been accepted by the IOC.

A guarantee has also been provided that the OCOG and theKorean Paralympic Committee would enter into aParalympic Joint Marketing Programme Agreement on orbefore 31 July 2008.

Billboards and advertisingGuarantees have been secured for all existing outdooradvertising space (as well as those to be constructed in thefuture) in the venue cities from local governments andprivate resort owners, from 1 January 2014 to 31 March2014. Similar guarantees have also been secured forexisting and future advertising spaces on public transportand at Incheon (Seoul) and YangYang (70 km fromPyeongChang and 40 km from Gangneung) airports.

All above-mentioned advertising spaces shall be grantedto the OCOG at 2006 rates plus inflation.

Rights protectionWhile the Bid Committee believes that ambush marketingis not a significant problem in Korea due to currentlegislation, a guarantee has been provided by theGovernment that the “Special Act” would includeregulations on advertising.

The OCOGwould set up an “Ambush Marketing EnforcementTeam” to coordinate and monitor all brand protectionenforcement policies and actions which would alsoencompass an Internet monitoring programme and a24-hour call centre.The OCOG would also initiate a voluntarybrand protection programme to educate the public of theconsequences of ambush marketing.

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Additional commentsThe OCOG budget includes USD 10.6 million for specificallytargeted activities to support the marketing programme,including ticketing.

TicketingThe Bid Committee estimates sales of approximately1.5 million tickets generating a revenue of USD 204.6million for the Olympic Winter Games based on a sell-outrate of 77%, and ticket sales of 70,000 generating revenueof USD 1.4 million for the Paralympic Winter Games basedon a sell-out rate of 66%. A comprehensive analysis hasbeen provided to back up projected ticket sales whichtakes into consideration ticket pricing, popularity of thesports, competition schedules and spectator capacities.The pricing policy is in line with previous Olympic WinterGames and other major sports events and appearsreasonable for domestic sales considering the GDP percapita in Korea.

The Bid Committee is fully aware of the importance of afull stadia policy and would therefore set up a specialpromotion plan to maximise occupancy rates includingdiscounts, grouping tickets and special promotions forselected groups, with particular emphasis on sports lesspopular in Korea.

Local sponsorship and licensingProjected revenue from domestic sponsorship wouldamount to USD 300million with an additional USD 12millionfrom merchandise licensing programmes.

The PyeongChang bid enjoys strong support from a largenumber of sponsors and donors which, combined with thecurrent underlying financial strength of large Koreancompanies, gives the Commission confidence that thesponsorship revenue is achievable.

During the visit, the Bid Committee acknowledged that thepercentage of VIK included in the local sponsorshipprogramme was relatively high (80%) and confirmed thatthe OCOG would endeavour to reduce this proportion tobetween 40% and 80% depending on the sponsorshipcategory.

SPORTS AND VENUES

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The sliding venue, which is Games-dependent, wouldfeature a mono-rail to transport athletes, officials andequipment to the top of the track, and a year-round, indoor,push-start training centre, providing a legacy for slidingsports in Korea.

Two new constructed ice arenas would contain a lower-level ice sheet to be used for training at Games’ time thatwould remain as permanent ice rinks post-Games.

Sports experienceKorea has hosted the 1988 Olympic Games, the 10th AsianGames in 2002, the 2002 FIFA World Cup, the 4th AsianWinter Games in 1999 in Gangwon Province, the 1997Winter Universiade, as well as numerous FIS World Cupsand a variety of ISU championships, particularly in short-track speed skating.

The bid proposes to hold events from October 2012 toMarch 2013 to test all competition and training venues.The Commission felt that the budget for test eventsappeared to be low.

Although Korea has good experience in organising multi-sport events, there is little expertise in the operationalaspects of a certain number of winter sports. The BidCommittee acknowledged the need to increase awarenessand create training programmes in sports where Korea hasless experience and to hire foreign expertise whereneeded.

Sports conceptPyeongChang offers a compact sports concept with twomain zones 37 km apart, each with an Olympic Village, aswell as two stand-alone venues. The PyeongChang zonewould be the site for most snow sports and the slidingcompetitions (1 to 10 km/under 10 minutes from theOlympic Village) and the Gangneung zone would containall ice sports (1 to 6 km/3 to 10 minutes from the OlympicVillage). Both stand-alone venues would be served by thePyeongChang Olympic Village: Jungbong for alpine speedevents (45 km/26 minutes) and Bokwang Phoenix Park fortwo snowboard events and freestyle competitions (44 km/26 minutes).

Venue construction statusOut of a total of 11 venues, 4 exist (1 requiring permanentworks), 6 would be constructed as new permanent venuesand 1 ice hockey arena would be a temporary venue forthe Games to be relocated to Wonju as a permanent icehockey facility post-Games. Out of the 6 new venues, 3 willbe built irrespective of the 2014 OlympicWinter Games (skijumping, alpine speed venue and figure skating/short-trackarena).

A specific OCOG department would coordinate and super-vise all design firms and construction contractors andmaintain control of the project budget, schedules anddelivery. Any cost increase would be the responsibility ofthe respective governments responsible for construction,in accordance with the guarantees provided.

Venue features / issuesThe Bid Committee confirmed that lighting would beprovided at the ski jumping venue.

The new Jungbong alpine speed venue will comprise twocompetition courses and two training slopes and willbecome a new ski resort post-Games.

OLYMPIC VILLAGES

57

facilities for a period of six months. During the Commis-sion’s visit, the Bid Committee guaranteed in writing thatthere would be no rental cost.

Both villages have been designed and would be built inaccordance with stringent environmental guidelines.

Village organisationA total of 5,860 beds would be available (3,520 inPyeongChang and 2,340 in Gangneung) which comfortablymeets IOC capacity requirements. The lay-out of bothvillages is good, with equal levels of service to be providedin each. Transport within the villages would be provided byzero-emission buses and battery-powered vehicles.

Extra officials could be accommodated in three star hotelsin proximity to the Olympic villages and venues (700 roomsguaranteed), at a rate of approximately USD 85 per night.

NOC travel costsNational Olympic Committee (NOC) and National Para-lympic Committee (NPC) delegation travel costs are in-cluded in the OCOG budget, in accordance with IOC re-quirements.

Additional commentsAthlete surveys were conducted to address village needsand considerations during the planning phase, and athleteinput would continue as development of the villagesprogresses.

PyeongChang proposes to provide all athletes and officialswith digital handheld devices through which they wouldbe able to access all Olympic Winter Games-relatedinformation at any time.

Location/conceptTwo Olympic villages are planned; one for snow and slidingsport athletes in PyeongChang, and one for ice sportathletes in Gangneung, 37 km/25 minutes apart.

The concept is very good and compact with all athletesable to reach their competition venues within 30 minutesat Games time (and 90% able to reach their venues within10 minutes) thus ensuring the likelihood of athleteschoosing to reside in the villages.

Alternative on-site accommodation would be available, freeof charge, for snowboard, freestyle and alpine speed eventathletes, with the same level and quality of services andamenities as provided in the two Olympic Villagesguaranteed.

Village developmentFour star, apartment style tourist accommodation, currentlyunder construction by a private company, would be rentedto form the PyeongChang Olympic Village. Scheduled forcompletion in 2009, buildings would range from 7-9storeys and include ample storage space, drying rooms andlaundry facilities. The Bid Committee has secured aguarantee from the owner for use of all Olympic Villagefacilities for six months at a guaranteed rental cost of USD9.9 million.

The Gangneung village would be a new construction ofapartment-style accommodation in towers of 21-26storeys. Due to the height of these buildings, further stud-ies would be required to ensure sufficient elevator capac-ity providing a reliable service at Games time. The ownerand developer of this village is a public corporation, andpost-Games the units would be sold as housing to thegeneral public. Construction is due to begin in 2010 withcompletion by 2013. The Bid Committee has secured aguarantee from the owner for the use of all Olympic Village

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There would be one integrated Organising Committeewhich would ensure the efficient organisation of theGames. One of two OCOG Vice-Presidents would have spe-cific responsibility for the Paralympic Games. In addition toa dedicated Paralympic Department which, amongst othermatters would deal with classification, Games operationsand the PrePara-X Project, each key OCOG departmentwould integrate a Paralympic expert into its team.

LogisticsThe PyeongChang Olympic Village would serve as theParalympic Village, accommodating athletes and officials,whilst media would be accommodated in a media village inPyeongChang.

The Bid Committee confirmed that the Olympic andParalympic Villages would conform to standards specifiedin the “Act on the Promotion and Guarantee of Access forthe Disabled, the Aged and Pregnant Women”.

Transportation would be athlete-centred and the BidCommittee was confident it could provide reliable andpunctual transport services including during morning peaktime periods.

The Bid Committee clarified that transport for theParalympic Family would be in line with IPC requirements.In addition, National Paralympic Committees (NPCs) wouldbe provided with additional vehicles with dedicated drivers,in accordance with the size of the delegation.

Media and communicationsThe same International Broadcast Centre /Main Press Cen-tre (IBC/MPC) facilities would be used for the ParalympicGames and would be located next to the Paralympic andmedia villages and Olympic Stadium, in the Alpensia Resortin PyeongChang.

ConceptThe proposed dates for the Paralympic Games are Sunday9 to Tuesday 18 March but the Bid Committee expressed itswillingness to reconsider these dates with the InternationalParalympic Committee (IPC) to include more than oneweekend.

Paralympic athletes would use the same venues asOlympic athletes with all athletes being accommodated inthe PyeongChang Village which provides for a very goodParalympic concept. During the visit, the Bid Committeeannounced its proposal to move sledge hockey to GangwonUniversity (Olympic ice hockey venue) in order for athletesto enjoy Olympic-level facilities.

BudgetThe budget for the Paralympic Games is USD 48.8 million,of which approximately 50% would be funded by thenational government. Additional Paralympic costs areembedded in other OCOG budget line items.

The Paralympic budget contains USD 15.3 million for thePrePara-X Project (see below) as well as the USD 5 millionmarketing rights payment to the IPC. The operationalbudget therefore amounts to USD 28.5 million.

The Bid Committee clarified that any potential ParalympicGames shortfall would be covered by the guaranteeprovided by the Korean Government.

The budget does not foresee funding for the TV signalproduction as the Bid Committee’s understanding was thatthis would be the responsibility of the Olympic BroadcastOrganisation (OBO). The cost of providing the Paralympicsignal would however be the responsibility of the OCOGand the Bid Committee confirmed that this would becovered by contingency funds.

PARALYMPIC GAMES

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GeneralMedical services and healthcare in Korea are regulatedthrough a combination of national and regional laws andregulations.

Healthcare in Gangwon Province is considered to be of ahigh level based on the current investment in publichealthcare facilities, the number of hospital beds per capitaand the level of emergency medical care. National healthinsurance covers 100% of the population.

Olympic healthcarePyeongChang offers a comprehensive plan for medicalservices to serve Olympic and Paralympic accreditedclients. Three hospitals with a total of 2,131 beds havebeen designated to exclusively serve the needs of theseclients. These hospitals are conveniently located for allvenues and both Olympic Villages.

Both of the proposed Olympic Villages would have apolyclinic providing a full range of basic 24 hour medicalcare and would be equipped according to IOC guidelines.

During the Games period, National Olympic Committee(NOC) and National Paralympic Committee (NPC) doctorsand health professionals would be allowed to providemedical services to their delegations (subject to aregistration process), including writing prescriptions in thepolyclinics. NOCs and NPCs would also be able to importand export pharmaceuticals and other medical itemswithout import duties or other levies.

Doping controlPyeongChang would provide all required anti-dopingprocedures and facilities in accordance with IOC andWorldAnti-Doping Agency (WADA) specifications. Korea hassigned the WADA Copenhagen Declaration on Anti-dopingin Sport, as well as the UNESCO International ConventionAgainst Doping in Sport.

The PrePara-X Project would be a seven year comprehen-sive project, running from 2007 to 2014 with the aim of:

– promoting winter Paralympic sports– developing human resources for the Games (coaches,

National Technical Officials, Games staff)– hosting annual international competitions in the five

Paralympic winter sports (2008-2013)– increasing awareness and participation

This OCOG project would receive support from the KoreanParalympic Committee, Gangwon Province, NGOs andmedia. One of the legacies would be increased awarenessof people with a disability in Korea.

Korea’s major television channels have agreed to increasetheir volume of programming on people with a disability ingeneral and on Paralympic sport in particular in the yearsleading up to the Paralympic Winter Games.

Additional commentsKorea has organised major Paralympic sports events in-cluding the 1988 Paralympic Games, the 2002 BusanFESPIC Games (Far East and South Pacific Games Federa-tion for the disabled), the 2006 IPC Power Lifting WorldChampionships and the 2006 IPC Alpine Skiing World Cup.

The 2014 Winter Paralympic Games would contribute tocreating a future winter sports hub for people with adisability, as well as setting new standards of accessibility.


SECURITY

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ResponsibilityThe Korean Government has guaranteed that it would bearthe full responsibility and cost of security for thepreparation and staging of the Olympic and ParalympicWinter Games. An additional USD 22 million is included inthe OCOG budget for private security contractors,equipment, planning coordination and training and logisticscosts for law enforcement personnel.

Safety and security personnelThe Korean police force has a great deal of experiencein organising major public events, including the 1988Olympic Games, the 2002 Busan Asian Games andthe 2002 FIFA World Cup. This experience and the under-standing of Olympic needs were demonstrated during theCommission’s visit.

The safety and security personnel required for securityoperations has been estimated at 24,000 (this numberappears sufficient compared to past Games experience)and would be supplied mainly from outside GangwonProvince.

Command structure /OCOG roleDuring the visit, in addition to the information contained inthe Candidature File about the proposed securityoperational planning, the Bid Committee stated thatthroughout the planning phase a security team comprisedof experienced personnel from all government security andsafety agencies and military forces, as well as privatesecurity experts, would be fully integrated within the OCOGand would liaise with all security forces.

Due to Korea’s experience in hosting major internationalevents, the Korean government, including security relatedorganisations, recognises the importance of a singlecommand system which is possible under currentlegislation. However, to ensure a more efficient commandstructure for the Games the “Special Act”, to be adopted

During the Commission’s visit, it was confirmed thatPyeongChang would analyse test samples at a newlaboratory to be built at the Korean Institute of Science andTechnology (“KIST”), located in Gangneung. The laboratorywould be staffed and equipped to handle all tests requiredby the IOC and WADA. The facility is scheduled to open in2012 and would remain as a permanent WADA approvedlaboratory as part of PyeongChang’s legacy programme.

PyeongChang would also promote an anti-doping cam-paign based on WADA’s Outreach Programme to increaseawareness to athletes.

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GeneralPyeongChang currently has 44,780 two to five star roomswithin a 50 km radius of the city. By 2014, approximately18,200 additional three to five star rooms will be available.

Letters of guarantee have been received for 27,307 threeto five star rooms (over 70% five star): 3,054 in hotels and24,253 rooms with an apartment style layout.

An additional 10,000 rooms are available in Wonju (90 kmfrom PyeongChang) and a large capacity of accommoda-tion is available in the Greater Seoul area (approximately200 km away), including 25,000 five star rooms, ensuringthat there would be sufficient accommodation for specta-tors and visitors during Games time.

The majority of rooms would be provided in modern andlarge apartments with hotel services and which usuallyhave a kitchen and living room space, a concept whichmatches well with the current trend in ski resortdevelopments. In the cases where a room occupant has toshare a bathroom, the OCOG would offer discounted rates.For the period of the Games, condominium operators wouldoffer the same level of services as hotels (for example,cleaning and 24-hour room service). The Bid Committeehas confirmed that this would not cause any additionalfinancial burden to the OCOG.

Room ratesThe guaranteed Olympic room rate would be USD 340 fora single room and USD 400 for a double/twin roomincluding breakfast(s) and all applicable taxes.

Should room rates exceed the rates specified above, theOCOG would be responsible for paying the difference.Provision has been made in the OCOG budget.

should PyeongChang be awarded the Games, wouldinclude provision for the formation of an independentsecurity committee, chaired by the Prime Minister,responsible for the security of Games’ related facilities andthe personal safety of all clients.

Korean security forces are well trained and equipped andwould be capable of ensuring safe and peaceful Olympicand Paralympic Winter Games in 2014.

ACCOMMODATION

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The OCOG has set aside a budget of USD 4 million toaccommodate 5,000 volunteers in two-star rooms, motelsand other establishments, on the basis that the rest of thevolunteer workforce would reside locally.

Additional commentsThe Korean hotel industry is rapidly changing towards amore international style and, by 2014, 90% of rooms areexpected to meet international standards.

Gangwon Province Tourism Association, the umbrella bodyfor tourist accommodation in the region, confirmed that ithas the authority to ensure reasonable service prices forthe period of the Games.

Various international home stay programmes would beorganised for athletes’ families.

The Commission notes that the accommodation plan forthe Games hinges on the construction of a high number ofnew properties (approximately 56% to be constructed) butacknowledges that this forms an essential part of the widerstrategic development of the region to promote tourism andwinter sports. The Commission is therefore confident thatsufficient accommodation would be available for theOlympic Winter Games in 2014.

PyeongChang proposes a compact accommodation conceptwith large capacity facilities which would ease transportoperations.

For other accredited clients, prices would be set accordingto the following formula: base price (winter season 2006-2007 for major international events) + 2.8% per year (fixedrate based on average CPI increases from 2007 – 2013)+ 5% Olympic Premium in the year 2013-2014.

Maximum 2014 prices have been stated as follows,including breakfast(s) and applicable taxes:

There will be no minimum stay policy and no booking feesfor all guaranteed rooms.

Room allocationsSufficient rooms of appropriate quality have been guaran-teed for all clients.

The media would be accommodated in two media villagesto be newly constructed in the form of apartment-styleaccommodation. One media village (6,000 rooms) wouldbe located in Alpensia Resort in PyeongChang, close to theMain Media Centre, Olympic Stadium and IOC hotels. Asecond media village (5,000 rooms) would be located inGangneung, close to the venues. These villages are beingconstructed as four to five star facilities to best meet post-Games needs. The Bid Committee acknowledged thepotential financial burden this would place on the mediaand guaranteed that three star room rates would becharged in both villages (see table above).

Should media request hotel accommodation, the OCOG hasagreed to secure additional four to five star quality hotelrooms as they are built.

Single roomUSD 2014

Double/twin roomUSD 2014

Junior suiteUSD 2014

3 star 130 177 249

4 star 191 210 365

5 star 265 292 466

TRANSPORT

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required to ensure that the line would be operational in2013, as planned.

Accessibility to and around the PyeongChang zone whichincludes most snow venues and core Olympic facilities(main Olympic Village, IBC/MPC and Media Village, Open-ing and Closing Ceremonies, Medals Plaza and IOC hotels)will be substantially eased by a number of planned road im-provements. To achieve the necessary road constructionand the upgrade of certain roads to four lanes withinPyeongChang and other proposed Olympic sites, investmentof over USD 800 million is planned. Improvements includethe roads leading to the Jungbong alpine speed venue(under construction) and Bokwang Phoenix Park, site of thesnowboard and freestyle competitions.

Olympic transport operationsA total of 256 km of directional Olympic lanes would beimplemented, monitored and enforced: including approxi-mately 110 km on the Yeongdong Expressway and 156 kmon national, provincial and local roads. Korean trafficregulations allow for the implementation of such Olympic lanes.The Olympic lane system would be the single most impor-tant operational measure to ensure efficient, reliable and safeOlympic mobility within this compact Games proposal.

The Commission believes that access to the venue forslalom and giant slalom may need to be widened.

To improve access to the PyeongChang snow zone, anadditional interchange would be constructed providingaccess to and from the Yeongdong Expressway. Roadswithin the PyeongChang Olympic zone would be reservedfor Olympic traffic.

Approximately two thirds of Olympic spectator, volunteerand workforce transport would be on public transport (railand bus). Those coming by car would use the approxi-mately 35,000 park and ride spaces along the Yeongdong

ConceptPyeongChang’s concept is structured as two main zonesand two stand-alone venues interconnected by an existingmotorway (Yeongdong Expressway) and a planned highspeed rail line providing a compact proposal with alldistances and travel times within 45 km/30 minutes. Aspecific feature of the concept is the fact that the Olympichub and main Olympic Village would be located in themountains.

AccessPyeongChang is currently accessible by car from Seoul(23 million inhabitants in the Greater Seoul area) in approx-imately 2 ½ to 3 hours (200 km) by motorway.

International visitors would access Korea through IncheonInternational Airport (Seoul), an advanced and efficientmajor Asian transport hub approximately 240 km west ofPyeongChang, or by charter plane directly to YangyangInternational Airport (70 km/40 minutes by motorway fromPyeongChang and 40 km/27 minutes from Gangneung). In2014, onward travel to PyeongChang from Incheon Airportwould be by road or high speed rail. In addition, the bidproposes a frequent air shuttle to Yangyang InternationalAirport which would be free of charge for Olympic and Par-alympic accredited persons including the media.

InfrastructureAccess to Gangwon Province will be much improved by thenew high speed rail line which will link Seoul to Gangneungvia PyeongChang. Travel time to PyeongChang would bereduced to approximately two hours and would offeran alternative mode of transport to the YeongDongExpressway. The cost of this expansion is budgeted atUSD 4 billion for the 115 km Wonju – PyeongChang –Gangneung section which is expected to transport 30 to40% of Games traffic. In view of the importance of this railline for the Games, and noting possible constructionchallenges due to the terrain, careful monitoring would be

MEDIA OPERATIONS

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The International Broadcast Centre (IBC) and Main PressCentre (MPC) would be located together in a temporarytwo-storey Main Media Centre (MMC) in PyeongChang,6 km from the Olympic Stadium (venue for Opening andClosing Ceremonies and ski jumping) and within walkingdistance of the main media village.

Both the IBC and MPC would meet IOC space requirements(40,000 and 26,000 m2 respectively) with a commonservices area and space for two technical compounds anda media transport hub.

There would be two 4-5 star media villages in PyeongChangand Gangneung of 6,000 and 5,000 rooms respectively,served by a 24-hour media transport shuttle. There wouldbe no minimum stay.

A dedicated media transportation system would be providedfrom the MMC as well as a venue to venue direct service.In addition, media would also have access to spectatorbuses.

Foreign media personnel would not be subject to Koreanlabour laws, and would not pay Korean tax. The temporaryimportation of broadcast equipment would be free ofcustoms duties.

Expressway and transfer to Olympic shuttle buses tocomplete their journeys.

Park and ride facilities are planned at the Gangneungmotorway exit to ensure efficient Olympic transport withinthis ice zone.

Ticketed spectators and accredited workforce wouldbenefit from free parking and shuttle services tocompetition venues. Rail passengers would also benefitfrom free shuttle services to snow venues from the newrail station which would serve PyeongChang and to icevenues from Gangneung station.

Based on the transport operations plan presented duringthe visit, including the implementation of Olympic lanes,the Commission believes that the travel times stated by theBid Committee are achievable and that Olympic andParalympic transport requirements would be fully met.

Transport legacyImprovements to national, provincial and local mountainroads would substantially improve safety and accessibilityto Gangwon Province from the Yeongdong Expressway.

The new high speed rail line, to be completed by 2013, willbe a major legacy providing long-term reliable andenvironmentally friendly rail public transport for GangwonProvince.

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Of the USD 70 million Legacy Fund to be set up, 10% wouldbe used to fund school education programmes and 10%to fund part of the Winter Sports Museum.

Youth campA Youth Camp would be held prior to the Olympic WinterGames in 2014 for all participants of ten previous DreamProgrammes as well as the members of the New DreamProgramme and would be financed from the non-OCOGbudget.

Torch relayThe Candidature File proposes a 100-day torch relay to beorganised between North and South Korea, with activitiesaround the world, visiting “lands in conflict and struggle,as well as those in peace”.

During the visit, the Bid Committee acknowledged IOCguidelines to restrict the torch relay to the national territory.The Bid Committee agreed to modify its plans which wouldbe submitted to the IOC Executive Board for approvalshould PyeongChang be elected as the Host City.

Cultural programmePyeongChang proposes an extensive and rich programmeof activities over a six year period (2009-2014) entitled“Winter Sonata Festival” which would seek to combineKorea’s ancient culture with state-of-the-art technology.Each year’s activities would be based upon a specific themewhich include snow, ice, the sea, peace and harmony.

CeremoniesThe Opening and Closing Ceremonies would take place inthe proposed venue for ski jumping in the PyeongChangsnow zone. The venue is currently under construction forcompletion in 2008 and would have a total capacity of60,000 (11,000 permanent and 49,000 temporary seats).The venue is 1 km from the PyeongChang Olympic Villageand 38 km/25 minutes from the Gangneung Village.

The Commission believes that the high seating capacityplanned for the ceremonies may need to be reviewed asthis may exceed the capacity of the Olympic transportsystem. As the venue would operate with a capacity of26,000 for ski jumping, careful planning would be requiredto ensure that the venue did not appear empty duringcompetition.

Education and information programmesPyeongChang’s education programmes would make use ofboth physical and virtual communication channels. Aschool programme produced in various languages wouldfocus on the history and culture of the Olympic WinterGames and aWinter Sports Museum would be establishedin PyeongChang by 2013.

A new Dream Programme (annual international sportscamp for youth who have little or no access to wintersports) would take place 2011-2015, following on from theexisting programme.

SOCHI

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Games activities would be based in the coastal ice cluster,25 km from Sochi city centre, and would include all icevenues, the main Olympic Village, the Olympic Stadium forOpening and Closing ceremonies, the Medals Plaza, theMain Media Centre (MMC) and IOC hotels. The innovativeconcept of an Olympic Park located outside of the citycentre would require careful planning to attract the crowdsnecessary to create a festive Games atmosphere. The Kras-naya Polyana mountain zone would include all snow andsliding venues, an Olympic Village and a media sub-centre.

With two Olympic Villages and additional accommodationavailable for cross-country and biathlon competitors,athletes would be able to reach their competition andtraining venues within 16 minutes in the mountain zone,and within 5 minutes in the Olympic Park.

Sochi proposes 11 competition venues (of which 4 arelisted in the Candidature File as existing) at a cost of USD806 million. Based on the large amount of constructioninvolved, the Commission considers these four venues asnew construction.

The Paralympic Games are fully integrated into OlympicWinter Games planning. There would be two Paralympicvillages, one in Sochi and one in the mountain zone.Athletes would use the same venues as for the OlympicWinter Games. The Paralympic budget would be USD 70.8million and the Federal Government would coverapproximately 65% of the budget.

Sochi has guaranteed the required number of rooms in acombination of existing hotels and new, high quality hotels.The accommodation plan relies on substantial renovationand construction which is largely guaranteed by the FTP.There will be no minimum stay for all clients. Media wouldbe accommodated in 6,700 existing hotel rooms in thecoastal zone as well as 3,000 new rooms in the mountainarea. In addition, 10,000 new hotel rooms would beavailable in the Sochi coastal zone by 2014.

The Candidature File and the presentations given to theCommission during its visit were of a high quality anddelivered by key stakeholders, including high rankingGovernment officials. The guarantees provided are generallyof a high quality.

The Sochi project for the 2014 Olympic Winter Games isembedded in the “Federal Target Programme for theDevelopment of Sochi 2006-2014” (FTP), funded by 60%public and 40% private investment. The FTP has beenestablished to modernise the Sochi area through creatingsubstantial new transport, telecommunications and energyinfrastructure as well as accommodation and sportsfacilities. Hosting the 2014 Olympic Winter Games wouldserve as a catalyst to achieve the government’s objectivesof transforming Sochi from the country’s most popularsummer destination into a high level, year-round resort anddeveloping Russia’s first world-class ski facilities.

Russian winter sports athletes would benefit from the de-velopment of many new facilities, including venues for alpine,Nordic, sliding and ice sports. Post-Games maintenance ofthe ice venues would be supported by an OCOG legacy fundof USD 35 million to be managed by the Federal Agency forPhysical Training and Sports.

The environmental programme includes the application ofa sustainable management system to develop facilities andoperations. Careful planning and strict regulations would berequired in the mountain zone, as major infrastructure wouldbe built within Sochi National Park and, in particular, twovenues are planned in close proximity to the Caucasus Bios-phere Reserve (a UNESCOWorld Heritage site). Funds wouldbe allocated for an environmental education centre, and forenvironmental projects to compensate for construction inSochi National Park.

Sochi proposes a very good concept, based around an icecluster which would take the form of an Olympic Park, anda mountain sports zone, 49 km/50 minutes apart. Core

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The Sochi OCOG budget of USD 1.517 billion, 30% of whichis subsidized by the State, is detailed, well-documentedand considered achievable by the Commission. TheRussian Government has guaranteed to cover any shortfall.Of the total non-OCOG capital investment budget of USD8.8 billion, which is fully guaranteed by the RussianGovernment, USD 3.6 billion would be incremental to theOlympic Winter Games. In addition, the Government hasguaranteed to cover all security costs.

The International Broadcast Centre (IBC) and Main PressCentre (MPC) would be co-located in a new Main MediaCentre (MMC) in Sochi Olympic Park which would alsoinclude a 600 room hotel for the media. A media sub-centrewould be set up in the mountain zone.

The majority of clients, including approximately 70% ofspectators would access Sochi by air, either directlythrough Sochi International Airport or via Moscow.

Investment in transport infrastructure would amount toUSD 4.4 billion. With a fairly compact concept, theconstruction of a new coast-to-mountain rail line andmotorway, together with the implementation of acomprehensive and dedicated Olympic lane system, theCommission believes that transport demands would befully met. However, it should be emphasized that thecompletion of the many infrastructure projects in thecorridor linking the coast to the mountains is critical to theGames and would require robust construction methods.

The Sochi bid presents a major infrastructure constructionprogramme (including road, rail, utility, accommodation andcompetition venues) all planned in a concentrated area.Construction would have to be tightly monitored in orderto ensure timely delivery for the Games, including testevents.

The City of Sochi, the Krasnodar Region and the RussianFederal Government are the three major parties involved.There is strong support by the Federal Government whichis driving the bid. The respective roles and responsibilitiesof each of these parties, which include service delivery,finance and construction, have been defined in the FTP. Theresponsibility for delivery of all FTP infrastructure projectslies with an existing body – the “FTP Directorate”. TheRussian NOC plays an active role in the bid, and athleteshave been involved in the planning process. There is verystrong public support for the Games.

SALZBURG

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residential buildings based on no post-Games need foradditional accommodation.

Salzburg proposes a total of 11 competition venues, 7 ofwhich exist. Of the 4 venues to be built, 3 would bepermanent. Capital investment in competition venueswould amount to USD 194.1 million, of which USD 81.6million would be for the upgrade existing venues. Inaddition, USD 79.4 million are included in the OCOG budgetfor the construction of temporary venues.

The Paralympic Games have been well-thought-out andare fully integrated into Olympic Winter Games planning.There would be two Paralympic villages, one in Salzburgand one in the mountain zone and athletes would use thesame venues as for the Olympic Winter Games. TheParalympic budget would be USD 27.6 million.

Whilst sufficient accommodation capacity exits, Salzburghas guaranteed a number of rooms slightly below IOCrequirements in existing high-quality properties, includingmany small, family-run hotels which are spread acrossthe Olympic area. A five day minimum stay policy with aflexible starting date would apply to all clients. The bid plansto accommodate the media primarily in existing hotels.Given the large number of properties included in theaccommodation plan (over 1,400), careful planning wouldbe required to successfully manage accommodationoperations, including room allocation, price consistencyand transport.

The International Broadcast Centre (IBC) and Main PressCentre (MPC) would be co-located in an existing exhibitioncentre in Salzburg, adjacent to the curling venue. Asplanned indoor space does not fully meet IOC requirements,temporary structures may need to be added.

Salzburg International Airport is conveniently located inrelation to the city centre and the snow venues. Munich

During the visit, presentations were made to theCommission by the key stakeholders involved, includinghigh-ranking government officials. The documentationprovided to the Commission was generally of a goodquality, though sometimes lacked detail.

Salzburg’s plan is based on using existing venues andfacilities, which would minimise Olympic-related capitalinvestments and the environmental impact of the Games,and would provide a positive, sustainable legacy. The visionpresented by Salzburg is based on capitalizing on thetraditional alpine setting of the region and its long historyof hosting winter sports events. A particular feature ofSalzburg’s plan is its focus on youth and providing a uniqueand memorable Games experience to young people.Austrian ice sports athletes would benefit from newcompetition and training venues.

The bid has proposed a “Sustainable Living in the Moun-tains” environmental plan containing a comprehensive andstrong set of environmental actions (based on EuropeanUnion, national and regional laws) which has served as abenchmark for bid planning.

Salzburg proposes an excellent concept based around twozones, 53-77 km/40-55 minutes apart and linked by anexisting motorway and a rail line, as well as one existingstand-alone venue in neighbouring Germany (sliding). TheSalzburg zone would include all ice venues, the stadiumfor Opening and Closing ceremonies, the Medals Plaza, themain Olympic Village, the Main Media Centre (MMC), aswell as IOC hotels. The mountain zone would include allsnow venues and an Olympic Village.

With two Olympic Villages, athletes would have relativelyshort travel distances to competition venues. All athleteswould be able to reach their competition venue within 30minutes and the large majority within 15 minutes. Bothvillages would comprise a high percentage of temporary

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International Airport (180 km away in neighbouring Germany)could also be used. Located in the centre of Europe, up to60 million persons would be able to reach Salzburg by carwithin four hours, or by train.

Investment in transport infrastructure would amount toUSD 1.7 billion. Based on the transport plans presented,the Commission feels that transportation demands couldbe fully met with careful traffic management and thereduction of spectator capacities at the snow venues,though budget provisions for transport operations are onthe low side.

The respective roles and responsibilities of the authoritiesinvolved in the bid are outlined in the “Multi-PartyAgreement”, the signatories of which are the City ofSalzburg, the State of Salzburg, the Federal Government,the snow venue municipalities and the NOC. The bid isdriven by the City of Salzburg with the strong support ofthe Austrian Government. Athletes and the Austrian NOChave played an important role in the planning process.

Whilst the Austrian Government has guaranteed to cover allsecurity costs, Salzburg appears to have underestimatedthe resources required for security operations.

The Salzburg OCOG budget of USD 965 million is consid-ered to be relatively low compared to previous OlympicWinter Games, particularly as it contains costs for a signif-icant amount of temporary and permanent construction.However, the “Multi-Party Agreement” provides for anadditional EUR 100 million initial cash infusion to be usedto meet OCOG funding needs. Furthermore, as jointly andseverally liable under the terms of this agreement, theAustrian Government would be ultimately responsible forfully covering any shortfall. Of the total non-OCOG capitalinvestment budget of USD 2.1 billion, USD 214.4 millionwould be incremental to the Olympic Winter Games.

PYEONGCHANG

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Ceremonies (venue for ski jumping), the Medals Plaza, themain Olympic Village, the Main Media Centre (MMC) andIOC hotels. The coastal zone of Gangneung would includeall ice venues and an Olympic Village.

With two Olympic villages and additional accommodationavailable for snowboard, freestyle and alpine speed eventcompetitors, athletes would have short travel distances tocompetition and training venues. Ninety percent would beable to reach their competition venue within 10 minutes.

PyeongChang proposes a total of 11 competition venues,4 of which exist. Of the 7 venues to be built, 6 would bepermanent. The 1 temporary venue would be dismantledpost-Games and moved to another city where it wouldbecome a permanent ice hockey venue. Capital investmentin competition venues would amount to USD 475.2 million,of which USD 29.9 million would be to upgrade existingvenues.

The Paralympic Games have been well-thought-out andare fully integrated into Olympic Winter Games planning.There would be one Paralympic Village in PyeongChangand athletes would use the same venues as Olympicathletes in PyeongChang and Gangneung. The Paralympicbudget would be USD 48.8 million of which approximately50% would be financed by the Korean Government.

PyeongChang has guaranteed the required number ofrooms (of which over 14,000 are to be built) in predomi-nantly modern, high quality and large apartment-styleaccommodation. There would be no minimum stay for allclients. For the media, two villages of four to five starquality are proposed (with three star room rates guaran-teed), one in PyeongChang within walking distance of theMMC (6,000 rooms) and one in Gangneung (5,000 rooms).

The International Broadcast Centre (IBC) and Main PressCentre (MPC) would be co-located in a temporary MMC inPyeongChang, close to the competition venues.

Detailed plans were presented in the Candidature File andvery high quality presentations and information were givenduring the Commission’s visit, indicating comprehensiveplanning by the key organisations involved in the bid. Theguarantees provided are generally of a high quality.

Plans for an Olympic Winter Games in PyeongChang areembedded in a national government programme aimed atdeveloping the region’s tourism – including the construc-tion of a new high speed rail line and abundant new year-round tourist accommodation – and creating a centre forwinter sports in Asia. In turn, this would increase awarenessand promote the practice of winter sports with the goal ofraising the level of Korean athletes’ performances in linewith those of other winter sports nations. The Bid Commit-tee hopes that staging the OlympicWinter Games, togetherwith youth programmes created by the OCOG, would con-tribute to peace, harmony and reconciliation on the Koreanpeninsula.

Korean sport would benefit from the development of manynew facilities, which include venues for alpine, Nordic andsliding sports, as well as four ice rinks. This newinfrastructure would be supported after the Games by aUSD 70 million endowment fund to be established by publicauthorities and the private sector.

The Bid Committee has developed an environmentalprogramme (“The New Green Plan”) which emphasisessustainability and proposes a comprehensive set of actionsand mitigation measures, integrated into construction andoperational planning, and designed to reduce andcounterbalance the impact of the Games.

PyeongChang proposes an excellent concept based on twozones, 37 km/25 minutes apart, and linked by an existingmotorway, as well as two stand-alone venues. Core Gamesactivities would be based in the PyeongChang mountainzone which would include the majority of snow venues,the sliding venue, the stadium for Opening and Closing

International arrivals would be through Incheon InternationalAirport in Seoul (240 km from PyeongChang) or YangyangInternational Airport (70 km from PyeongChang), with a freeair shuttle being proposed for accredited persons betweenthese two airports. PyeongChang is linked to Seoul by a fourlane motorway (approximately 2½ hours) and, by 2014,would be served by a new high-speed rail line.

Investment in transport infrastructure would amount toUSD 4.917 billion, of which USD 4.4 billion are for the high-speed rail line. With a compact Olympic Winter Gamesconcept, the implementation of a dedicated Olympic lanenetwork and the completion of the high speed rail line, theCommission believes that transport demands would befully met.

The City of PyeongChang, the Province of Gangwon and theRepublic of Korea are the three major parties involved in thebid which is driven by the Province of Gangwon, with strongsupport from the Korean Government. The respective rolesand responsibilities of each of the above authorities,including service delivery, finance and construction, havebeen agreed. Draft legislation to facilitate Games planningand organisation is in place in the form of a “Special Act”which would be passed should PyeongChang be awardedthe Games. The Korean NOC is an active participant in thebid and athletes have played an important role in theplanning process. In addition, there is very strong publicsupport for the Games.

The PyeongChang OCOG budget of USD 1.257 billion isdetailed, well-documented and is considered achievableby the Commission. Any financial shortfall would becovered by the Korean Government. Of the total non-OCOGcapital investment budget of USD 7.1 billion, USD 607million would be incremental to the OlympicWinter Gamesand would be fully guaranteed by the three levels ofGovernment. In addition, the Korean Government hasguaranteed to cover all security costs.

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SUMMARIES

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APPENDICES

A. COMPOSITION OF THE COMMISSION

B. VISIT DATES

C. ACCOMMODATION TABLE

D. SUMMARY OF IOC OPINION POLL RESULTS

E. MAPS

F. NUMBER OF COMPETITION VENUES

G. ABBREVIATIONS

H. SIGNATURES

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APPENDIX A

COMPOSITION OF THE COMMISSION

CHAIRMAN Mr Chiharu IGAYA

EXECUTIVE DIRECTOR Mr Gilbert FELLI

MEMBERS Mr Simon BALDERSTONEMr Dwight BELLProf. Philippe BOVYMr Rémy CHARMETANTMr Jan-Ake EDVINSSONMr Stig Ove GUSTAFSSONMr Kai HOLMMr Jose Luis MARCÓMr Theodore PAPAPETROPOULOSMr Miguel SAGARRAMs Rebecca SCOTT

IOC ADMINISTRATION Ms Jacqueline BARRETTMrs Sophie SKEELSMiss Helen STEWART

PYEONGCHANG 14 – 17 February 2007

SOCHI 20 – 23 February 2007

SALZBURG 14 – 17 March 2007

The order of visits was determined by logistical considerations.

The above dates represent the official working days with each Bid Committee.In each city, the Commission held a private meeting before the visit and aprivate debriefing at the end of the visit.

The Commission held a final meeting in Lausanne from 19 – 22 March 2007.

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APPENDIX B

VISIT DATES

* Numbers taken from the IOC Technical Manual on Accommodation

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APPENDIX C

Client Winter rooms Quality (stars) Accommodation facility

IOC 950 4 to 5 IOC hotel(s)

IF 685 2 to 5 Accredited client hotel(s)

NOC 1,820 2 to 5 Accredited client hotel(s)

Host OCOG 4,820 2 to 5 Accredited client hotel(s)

Future OCOGs 200 3 to 4 Accredited client hotel(s)

Marketing partners 4,350 3 to 5 Accredited client hotel(s)

Media 9,975 2 to 5 Accredited client hotel(s)

TOTAL 22,800

ACCOMMODATION TABLE*

The IOC commissioned Sports Marketing Surveys to conduct public opinion polling in the three Candidate Cities and their respectivecountries regarding support for hosting the XXII Olympic Winter Games in 2014. All three polls were carried out from 27 Novemberto 19 December 2006.

In answer to the specific question:

“To what extent would you support or oppose (City) hosting the Olympic Winter Games?”

the results were as follows:

All figures are expressed in percentage terms. Where they do not add up to 100%, this is due to computer rounding and a smallnumber of respondents with “no opinion”.

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APPENDIX D

Support strongly Support Neither supportnor oppose Oppose Oppose strongly

Sochi 55% 24% 7% 7% 7%

Russia 54% 26% 11% 4% 4%

Salzburg 21% 21% 10% 18% 27%

Austria 32% 29% 13% 11% 13%

PyeongChang 58% 33% 4% 2% 3%

Korea 42% 41% 14% 2% 1%

SUMMARY OF IOC OPINION POLL RESULTS

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SOCHI

78

APPENDIX E

81

SALZBURG

80

APPENDIX E

83

PYEONGCHANG

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APPENDIX E

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APPENDIX F

Numberof

venues

SOCHI SALZBURG PYEONGCHANG

Name of venueSports /events /disciplines



1Psekhako, KrasnayaPolyana

BiathlonCross CountryNordic Combined

Radstadt /AltenmarktBiathlonCross CountryNordic Combined

Alpensia Nordic CentreBiathlonCross CountryNordic Combined

2Russian National SlidingCentre, KrasnayaPolyana

BobsleighSkeletonLuge

Schönau am Königssee,Germany

BobsleighSkeletonLuge

Alpensia Sliding CentreBobsleighSkeletonLuge

3Olympic Curling Centre,Sochi Olympic Park

Curling Salzburg Arena CurlingGangneung Indoor IceRink

Curling

4Bolshoi Ice Palace,Sochi Olympic Park

Ice Hockey 1 Salzburg Urstein Ice Hockey 1 Hasla Ice Hockey Arena Ice Hockey 1

5Maly Ice Palace,Sochi Olympic Park

Ice Hockey 2 Salzburg Volksgarten Ice Hockey 2Gangneung UniversityIce Hockey Arena

Ice Hockey 2

6Olympic Oval,Sochi Olympic Park

Speed Skating Salzburg Liefering Oval Speed Skating Millennium Centre Speed Skating

7Sochi OlympicSkating Centre,Sochi Olympic Park

Short TrackFigure Skating

Salzburg LieferingShort TrackFigure Skating

Sunrise GymnasiumShort TrackFigure Skating

8Russian National SkiJumping Centre,Krasnaya Polyana

Ski JumpingNordic Combined

BischofshofenSki JumpingNordic Combined

Alpensia Jumping ParkSki JumpingNordic Combined

9Roza Khutor AlpineResort, KrasnayaPolyana

Alpine Skiing Flachau

Slalom (M/L)Giant Slalom (M/L)Combined (M/L)Snowboard ParallelGiant Slalom

Jungbong Alpine Area Alpine Speed Events

10Alpika Service MountainResort, KrasnayaPolyana

Freestyle Skiing Flachauwinkl

Downhill (M)Super G (M)Combined (M)Snowboard Half PipeSnowboard Cross

Yongpyong ResortAlpine Area

Alpine TechnicalEventsSnowboard ParallelGiant Slalom

11Roza KhutorAlpine Resort,Krasnaya Polyana

Snowboard Zauchensee Freestyle Skiing Bokwang Phoenix ParkFreestyle SkiingSnowboard Half PipeSnowboard Cross

NUMBER OF COMPETITION VENUES

The following abbreviations have been used in the report:

CPI Consumer Price Index

EU European Union

EUR Euro

FESPIC Far East and South Pacific Games Federation for the disabled

FIS Fédération Internationale de Ski (International Ski Federation)

FTP Federal Target Programme

GDP Gross Domestic Product

IBC International Broadcast Centre

IF International Federation

IOC International Olympic Committee

IPC International Paralympic Committee

ISU International Skating Union

MMC Main Media Centre

MPC Main Press Centre

NGO Non-Governmental Organisation

NOC National Olympic Committee

OBO Olympic Broadcast Organisation

OCOG Organising Committee for the Olympic Games

UNESCO United Nations Educational, Scientific and Cultural Organisation

USD United States Dollar

VIK Value in kind

WHO World Health Organisation

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APPENDIX G

ABBREVIATIONS

Mr Chiharu IGAYA

Mr Gilbert FELLI

Mr Kai HOLM

Ms Rebecca SCOTT

Mr Dwight BELL

Mr Jan-Ake EDVINSSON

Mr Stig Ove GUSTAFSSON

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APPENDIX H

SIGNATURES

Mr Miguel SAGARRA

Mr Rémy CHARMETANT

Mr Simon BALDERSTONE

Mr Philippe BOVY

Mr Jose Luis MARCÓ

Mr Theodore PAPAPETROPOULOS

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Documents

IOC2014 EVALUATION COMMISSION REPORT Library... · OLYMPICGAMES CONCEPTAND LEGACY SOCHI 10 – toestablishRussia’sfirstalpine,slidingandskijumping centre; – toimplementRussia’snewphilosophyofinvesting