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Olympics Facilities Sail New Financing Course
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Beijing, the host of 2008 Olympic Games, will use the market to finance the construction of all 18 new sports facilities and affiliated projects, according to Liu Zhi, vice director of the Beijing Municipal Development and Reform Commission. Liu is also vice director of the Engineering Department of Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG).

The local government will use open bidding to select companies to handle the overall financing, design, construction and operation of the facilities. Such moves will reduce the risks of government investment.

The Olympics Action Plan drafted by the Beijing municipal government and BOCOG says that the construction and financing of Olympics facilities must be guided by the government and follow market practices. Construction of temporary sports facilities and some extended stadiums are exceptions and will be funded by BOCOG.

The National Stadium is one of the four Olympics facilities on which construction has already begun.

The Beijing government is contributing 51 percent of the investment in the National Stadium, entrusting the Beijing State-owned Assets Management Company to run it. The remainder of the financing was accomplished through global bidding.

The National Stadium is now owned by National Stadium Company Ltd., which was jointly established by Beijing State-owned Assets Management Company and CITIC. CITIC will own 30-year authorized operation rights.

The National Stadium strategy sails off the old route of government investment, operation and fiscal subsidy, and sets the course for the construction and operation of future sports facilities.

(China.org.cn by Tang Fuchun September 7, 2004)

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