. In order to arrive at an accurate figure, add up the following:
·
Budget of the Athens Organising Committee (£1.2
billion). The bid committee initially estimated ATHOC would
spend $1.57 billion (£1.0 billion) and generate a profit of $36m
(£23m). Since then the Organising Committee budget has
increased to EUR 1.96 billion (£1.23 billion), of which just EUR 235
(£149m) will be public money.
·
The Greek Government’s own Olympic budget (£2.75
billion). Prime Minister Costas Simitis has set aside a further
1.493 trillion drachmas (£2.75 billion) of Governmental spending to cover
Olympic venues and activities, including a rowing and sailing centre and
the athletes’ village.
·
Infrastructure acceleration cost (at least £2.4
billion). The success of Athens 2004 depends entirely on
accelerated completion of infrastructure projects costing a total of Eur
20.9 billion (£13.1 billion) as follows:
o
Athens International Airport -
Eur 2.5 billion
o
Athens Ring Road - Eur 3.0
billion
o
Athens Metro Extension - Eur 2.0
billion
o
Pathe Motorway - Eur 2.0 billion
o
Egnatia Motorway - Eur 2.3
billion
o
Upgrading of Telecommunications -
Eur 5.0 billion
o
Athens-Halkida suburban railway
line upgrade - Eur 1.5 billion
o
Rio Antiro Bridge - Eur 750
million
o
Water and sewerage projects - Eur
570 million
o
Health and welfare programmes -
Eur 375 million
o
Energy and gas projects - Eur 920
million
Bringing forward expenditure costs
money. Assuming these projects have been accelerated by an average of
three years because of the Olympics, that is a hidden financing cost for Athens 2004 of £2.4
billion (£13.1 billion x 6% financing cost per year assumed by Ove Arup x
3 years).
In addition, of course, the fact that
these projects have to be rushed through at once is contributing to
enormous inflation in the Greek construction industry, the unquantified
costs of which hit the rest of the Greek economy. Athens 2004 will use all
this infrastructure at no charge.
Of course all potential 2012 host
cities have a similar list of required infrastructure investments. For
example the figure for San Francisco's failed 2012 bid was $31.8 billion.
The big question for London 2012, of course, is what is the list of
similar projects required and who is going to pay for them: London,
British or EU taxpayers?
The real scandal of Athens 2004 is that
the projects generally referred to as the ‘legacy’ of the Olympics are in
fact being paid for not out of the ATHOC budget, nor even out of the Greek
Government Olympic budget, but out of the European Union’s regional
development funds, but noone from the UE is auditing
them.
The majority of the Eur 20.9 billion
costs are being met by the Community Support Frameworks II and III for
Greece (Eur 18.5 billion and 26.6 billion respectively), with much of the
remaining funding taking the form of subsidised loans from the European
Investment Bank.
Amazingly, despite the huge sums being
doled out, the EU does not maintain a list of projects supported by CSF
III. Money is distributed to qualifying projects by selected local
“partnerships”. They only inform the EU of the individual projects when
the whole programme is closed (i.e. all the money is gone). CSF III is not
expected to close until 2009. Until then, the Greek Government can
effectively direct the EU money-hose wherever it wants. The EU does not
even have a list of projects, let alone any financial information it could
audit, for nearly a decade.
CSF II was grossly misapplied by the
previous Greek Government. The EU is currently (behind a veil of secrecy)
trying to recover Eur 2.9 billion that was spent on non-qualifying
projects.
And who is the EU Commissioner in
charge of ensuring that Greece can "absorb" (EU terminology) these
multi-billion dollar sums without waste or fraud? None other than Michel
Barnier, President of the Albertville 1992 Olympic Organising
Committee!
·
The Cultural Olympiad (£74m initial
cost). This is an ambitious monumental roving showcase of
Olympic and Greek culture. “Resources to the tune of 40 billion drachmas
(£74m) have already been allocated through the [Greek] state budget ... to
this amount one should also add the additional resources that will be
allocated during the 2001-2004 period through the current budget, the
Ministry of Culture lottery tickets, funds for Ancient Olympia and the
Olympic Youth Festival and Olympic Education, not to mention the funds
allocated for specific Ministry of Culture activities with regard to the
2004 Olympic Games. These funds are earmarked solely for activities and
not for any infrastructures, which will be covered by the resources
derived from the 3rd Community Support Framework.”
·
Indirect costs (unquantified). In
addition to the costs listed above, Greek police, customs, military,
social services, health, environment and other public services are having
to deflect very substantial resources away from other priorities because
of Athens 2004. These public costs have not been quantified. There are
also costs to disruption of business up to and during the Games, again
unquantified.
The point of all this is that yes, the Athens is being transformed in the run-up to the Games. But the amounts being spent are ASTRONOMICALLY higher than the £1.8 billion we are told London 2012 will cost. In the case of Athens, there are enormous subsidies available from the EU. In the case of London there aren't - it would be British taxpayers footing the bill. Although the EU has allegedly let it be known there might be a billion or so Euros available help with the regeneration of East London, it will in no way cover the costs involved. The only Olympics worth having is one that comes clean about its costs.