Investors did not show interest in Sochi’s Olympic venues
Development, Olympics 2014 August 13th, 2008
Olympstroy, state corporation responsible for coordination of the Olympic construction in Sochi, could not attract investors for some of the Olympic venues. The tender’s deadline was August 8, but there were no proposals for four projects, including the ice arenas.
The Olympstroys’ tender projects are tandems of Olympic venue plus hotel(s). Lenta.ru quoting Pokrov Invetment Group’s President saying that pay-off period for hotels can be from eighth years and more, while for the sports venues from 12 years to never. By his calculations sport venue + hotel tandem could take more than 20 years to pay-off.
Meanwhile, officials are not surprised about the outcome. The press secretary of the Ministry of Regional Development said that ice arenas in many countries are not paying off and are built on governments’ funds. However, the administration had to try to find private funds for these venues.
Now there will be separate tenders for the hotels, while Olympstroy will finance the venue constructions, and run separate tenders for prime contractors for the venues construction.
Information from Lenta.ru and Kommersant.ru
August 14th, 2008 at 1:05
Really interesting blog. I just visited a friend in Krasnodar in early July. We did not go to Sochi.
August 25th, 2008 at 22:21
thanks, and sorry for untimely reply… you’ve missed a lot!! :) Krasnodar is very, hm, industrial (?) city. In comparison to Sochi it is very gray and dusty (though it does have its pluses!). Sochi is, well, sea-side resort! You were soooo close, I hope you won’t miss an opportunity next time you’re around ;)