Press conference on cost-efficiency Olympic Games

Related story: Liu: 13 billion yuan spent on cost-efficient Olympics

Date/Time: 3:00 p.m., Friday, August 1

Venue: Main Press Center (MPC)

Liu Zhi

Good afternoon, friends from the press. As the spokesperson for the Olympics as well as the municipal government, I'm glad to meet you in the afternoon. The topic of this press conference is relating cost efficiency of the Olympic Games. I have invited the spokesperson Wang Haiping, deputy director of Beijing Municipal Commission of Development and Reform. It is a comprehensive department, which is in charge of the planning of the city. So when it comes to micro-economic matters, those questions go to Mr. Wang. Mr. Zhang Nongke, member of Beijing Municipal Construction Committee. And matters relating to constructions, you can pose the questions to him. Mr. Zhang Baoyu, chief economist of Beijing 2008 Project Construction Headquarters Office. When it comes to the games project, you can post questions to him. Another person present today is Madam Shen Yuyun, deputy director of BOCOG Finance Department. She is in charge of the budget of BOCOG. First of all, in regards to the cost-efficiency of the Games, I wish to give an introduction in the following 3 areas.

Firstly, the input on the venues. Secondly, how the policy of cost efficiently is implied during the course of the Games. Thirdly, I would like to tell you about the effects of the Games in terms of accelerating the improvement of the lives for the local people.

First is with regard to the input of capital. I wish to draw a theme from 3 angles. Firstly, in terms of the capital input in the venues according to what we have at our disposal. The estimated budget for the Games will be controlled within the 13 billion RMB (1.91 billion U.S. dollars approximately). Among which 50% comes from the government including the central and the municipal government. And the other half comes from the social mobilization which included the contributions form our compatriots Hong Kong, Macao, and Chinese Taipei. There are also contributions from overseas Chinese.

These investments are used in building a total of 12 new venues, renovating 11 existing venues and constructing 8 temporary venues, renovating 45 stand alone training sites. All these venues are directly built or renovated for the Games. These do not include the auxiliary facilities, for example, the Olympic Forest Park or Olympic Green rather because the park itself is meant for the public before or after the Games. Therefore it's not supposed to be a sport facility.

The Olympic Village is itself a property site and it is not included in the venues for the Games. The actual amount of the capital for the venues will be audited by the department concerned. The budget will be controlled within 13 billion RMB (1.91 billion U.S. dollars approximately). The actual amount will be subjected to the final estimate and auditing and will be released to the public after the Games.

Secondly, in terms of the capital input in Games operation, that is in relation to the operations of the BOCOG at the time of the bidding of the Games. The budget is 1.625 billion U.S. dollars and that is based on the estimate of the past Games in accordance of IOC in the course of the preparation. The BOCOG has come up with 3 editions of the budget. The updating of each budget is adjusted according to the increase and decrease of the preparation tasks as well as such factors as the fluctuating exchange rate. These figures have been approved by IOC. The current edition amounts to over 2 billion U.S. dollars and the actual figure can only be decided upon after the Games. The income part of the budget is satisfactory and the overall budget can be secured.

Thirdly, the capital input in some major infrastructure of Beijing since 2001. Since 2001, the major infrastructure investment is a total of 280 billion RMB. The investment is making in full areas, such as urban transportation, energy, infrastructure, as well as urban environment. We noticed that some media people treat 280 billion RMB as the total investment of Beijing during the Olympics. That is not accurate. Let me tell you the composition. That figure includes the investment in infrastructure since 2001 and includes such areas.

1. Transportation which amounts to 178.2 billion RMB (about 26.2 billion U.S. dollars)

2. Energy infrastructure, amounts to 68.5 billion RMB (about 10.0 billion U.S. dollars)

3. Water resources amount to 16.1 billion RMB (about 2.37 billion U.S. dollars)

4. Urban environment investment amounts to 17.2 billion RMB (about 2.53 billion U.S. dollars) and all these projects are the major projects of the city and the development of the projects will improve the overall city construction

What I want to share with you that these are major projects. We have other projects as well as protection and some other non-major areas; we have other investment as well, which may exceed the figure mentioned above. And all the projects are indeed in accordance with the Five-Year Plan for the city. These projects should be completed by 2010. That is to say because of the Games, these projects were done ahead of time. And therefore, the urban construction has been improved.

Secondly, I wish to share with you how we managed to implement the principle of cost-efficiency. During the course of the Games, in terms of the venues, from selection of the venues as well as the throughout the construction, the cost-efficiency has been implemented. We have implemented criteria in terms of the quality as well as other criteria.

We made the existing utilizations with an eye on the post-Games utilization, and subjected all those facilities to scientific assessment, the scope location and quantity which can be renovated or expanded. For temporary venues, we would not allow new constructions.

At the same time, we decided to put 6 venues on the campuses of the universities in Beijing. We use the facilities of the universities, and at the same time, we solve the problem of the after Games use of the venues. During the approval of the venues, we have strictly controlled the investment scale and construction. They satisfy the function of the Games, and are also economic and practical. And we controlled the construction that has nothing to do with the Games. There are altogether 31 venues. To them, we have implemented the controls, we have ensured the strict cost management control system and make sure that the capital will be used in an earmarked way. And we have been optimizing the design of the venues. The Wukesong basketball arena, in terms of the design that has been adjusted, the scale has been reduced from the original 117,000 square meters to the existing 63,000 square meters. All these methods managed to save the cost.

Secondly, there is scientific allocation of the Games operation budget. The operation budget is composed of the budget and the expenses. The income maybe from a variety of areas, for example, the sales of the broadcasting rights which is under the responsibilities of IOC, as well as the sponsorship income from the top partners and those jointly developed by the BOCOG and the IOC, income from ticketing as well as disposal of properties.

In terms of the expenditures, they relate to the organization expense rather relating to the operation of the Games. It includes the sports equipment, the organizations and operation of the Games, the travel expenses of the athletes and official, and expenses relating to some security accommodation and catering during the Games, as well as some technical costs. When it comes to the capital input, BOCOG has established a very strict provision, regulations and the formulation of the projects as well as the scope of the expenses. They are all subject to very strict approval procedures.

Capital management have been implemented and contract implementation has been intensified. The auditing and supervision have been put into place. As the Games approching, there are many expenses ahead of us, the operation of the Games and services as well as the management. We will on our part do the job for the preparation of the Games to make sure the capital will be spent in a standard, reasonable and efficient manner.

Then, I wish to tell you how the Games improve the life quality of the people. Since 1990s, the city has entered a period of rapid development. And the success of biding of the Games has accelerated the development of the city infrastructure, and the rural areas have been developed as well. The quality of life has been enhanced constantly. The concept of 'New Beijing Great Olympics' realized. I wish to share with you 6 pieces of information which cover the areas invisible and tangible to the public.

No. 1, the overall livelihood of the people has been improved and the quality of life has been improved. In 2007, the per capita disposable income and the net per capita income for the rural people respectively reached 21,989 RMB (about 3,234 U.S. dollars) and 9,559 RMB (about 1406 U.S. dollars). During the period of 2002 to 2007, the net per capita income for the urban residency and rural residency increased by 11.5% and 9.1% respectively.

Over the past 5 years, new jobs opportunities have been created with a total of 2.63 million people, and the registered unemployment rate has been controlled within 2.3%. We have basically established a social security system including urban and rural people. The total country is in coverage of the medical insurance scheme.

Secondly, the improvement of housing conditions. Through expediting the renovation of dilapidated houses through the relocation of the city construction site, as well as the development of the commercial properties and the construction of the economic properties. The utilization area for urban residence exceeds 20 square meters and more and more urban people have been moved from dilapidated houses and simple apartments into spacious and bright new houses. The per capita housing area for rural people exceeds 40 square meters.

And thirdly, transportations have been made more convenient. Beijing subway extends from 42 kilometers to 200 kilometers, And the roads in the city covers 4,455 kilometers. The roads in suburb cover a total of 20738 kilometers and the express ways covers 800 kilometers. The subway implemented the single fare of 2 RMB. Beijing leads the whole country in terms of the cheap fare of the subway and public transportation. And the subway routines are adequate of the city.

Fourthly, the living conditions have been made more convenient. The forestation of the city stands at 51.6%, the coverage of the green land stands at 43%. As a result, for citizens, it doesn't have to be more than 500 meters to go to a green land or park. In terms of days of good air quality, we have 67.4% of the days at the second level or better.

Fifthly, we have diversified cultural life for the urban and rural people. We have 67 theaters and 72 places for performances. Every year, a total of 15,000 performances are held. Each county is facilitated with mobile theater. 2,400 villages have digital cinemas, as a result of which, the rural people can watch more than one movie each month in the suburbs. We have implemented the projects in the field of cultural performances, which the rural people can share more than one professional cultural performance each month. We have also done something in terms of construction of some libraries of rural area. As a result, each administrative village has a library. And it becomes a dispensable part of rural life.

Sixthly, fitness and exercise have been very popular. There are 12,106 sports facilities in the city. In all the districts of the city, they have sports facilities made for exercises. And 52.4% of people in the city go for sports. In all the institutions in the city, a total of 10,000 sports activities have been done every year, participated by over 3 million person-time. Indeed, Beijing people all demonstrate that as a result of holding the Games, Beijing people are feeling the effect of the games in a most tangible way.

The above is something that I want to share with you. And now the floor is open to the press, if you have any questions, due to the large demands and in order to make sure each media has chance to ask questions, I will give you one floor per journalist. And before you do, please identify yourself.

Xinhua News Agency

I am from Xinhua News Agency. The National Indoor Stadium has used a lot of great science and technology. During the course of the construction, I wish to find out that in terms of science and technology, how the cost efficiency is implemented in this area.

Zhang Baoyu answers the question.

Zhang Baoyu

I wish to answer this question rather briefly. From the beginning of the construction, we have been focusing on 'Green Olympics, High-tech Olympics and People's Olympics'. The three concepts have been implemented during the whole process. We have used cost-efficiency measures and energy saving measures and they have certainly demonstrated the environment protection, Green Olympics, and all these concepts. We have also provided accessible facilities for people with a disability. The three concepts are very effective interpretation of the concepts when China raised during the course of the biding. That is what I have to say at this stage. Thank you.