Budget finally set for Vancouver Games

Organisers of the 2010 Olympics in Vancouver released a business plan this week with a C$1.63 billion ($1.5 billion) operating budget that projects strong ticket demand but concedes that not all events will be sold out.

The long-awaited plan pegs the total cost of hosting the Winter Games at over C$2.1 billion. It says the IOC will contribute C$401 million by sharing international broadcasting revenues and making other payments.

"It won't be a loss, and we won't be spending money that we don't have," Vancouver Organising Committee (VANOC) Chief Executive John Furlong told reporters.

"It's a balanced budget with a $100 million contingency to protect it."

Vancouver had projected a C$1.3 billion operating budget when it was awarded the games in 2003, but that estimate was later revised to C$1.7 billion because of rising costs and the strengthening of the Canadian dollar.

The 2006 Winter Olympics in Turin had an operating budget of about US$1.58 billion, and ended with a shortfall of about US$32 million, according to figures released in February.

Vancouver's operating budget is in addition to C$580 million in public funding already budgeted by VANOC for venue construction, and does not include security costs that are being covered by the Canadian government and have not been disclosed.

Although officially called the Vancouver Olympics, the competitions will be held both in the Pacific coast city and in the mountain ski resort of Whistler, British Columbia, about 125 kms away.

Organisers say money from the private sector, including the IOC, will cover 75 per cent of the C$2.1 billion budget, but that does not include spending for projects such an expanded highway between Vancouver and Whistler.