First Batch of Olympic Ownership Tenders Expected Mid-September

Plans for the release of tender documents for the main sports arena and facilities for Beijing’s 2008 Olympics Games moved forward with an unofficial midsummer announcement that the first round of tenders for public bidding on key venues would be released in mid-September. The announcement was made by an outside consultant appointed by the Office for Beijing Olympics 2008 projects under the Beijing Municipal Development Planning Commission (BDPC).

BDPC and the Beijing Organizing Committee for the Olympic Games (BOCOG) are jointly preparing tender documents that will specify funding, design, building, and operation of the National Stadium, National Indoor Stadium, National Swimming Center, Olympic Village, a meeting and exhibition center, and several other commercial facilities. Final tender documents are not yet complete but the State Development Planning Commission is expected to approve them in mid-September.

Authorities appear to want to select winning bids by the end of 2002. The bid period would, in that case, only last two months. It may prove difficult for companies to design facilities, undertake feasibility studies, and make all necessary financial analyses in time to submit bids on projects.

The Beijing government appears to expect financing for these projects to come entirely from the private sector under a build-operate-transfer model, with a concession period of 30 years. There is no indication thus far whether Beijing will inject International Olympic Committee or Chinese government funds into these projects. The Beijing government is asking companies to form consortia of finance, design, engineering, and operations companies to make a single bid for each tendered project.

Foreign Firms Among First Winners
Earlier in the summer, China named two US companies as winners in its first 2008 Olympic Games project bid competitions. PricewaterhouseCoopers, one of five accounting firms invited to submit bids, will provide accounting services related to the development of Olympic venues.

Another US firm, San Francisco-based Sasaki Associates, Inc., teamed with the design firm Tianjin Huahui Architectural Design & Engineering Co., Ltd. to win the $250,000 international competition for conceptual planning and design of the Beijing Olympic Green. The Sasaki-Huahui team also won second prize in the Wukesong Cultural and Sports Center design competition—no first prize was awarded. Although there is no guarantee that the winning designs of the Sasaki-Huahui team will be used, the success of the two US companies is an encouraging sign that BOCOG will consider foreign firms and will honor its commitments to a public and transparent bidding process. Unfortunately, the winning and runner-up designs, now on public display in Beijing, have come under heavy media criticism for falling short of expectations.

The jury, consisting of six foreigners and seven Chinese, reportedly favored natural landscapes. “Green Olympics,” one of the three themes of the Games—along with “High-Tech Olympics” and “People’s Olympics”—is gaining popularity with the organizers. Jury members noted their preference for mountains and water, the two essential elements of traditional Chinese painting.

BOCOG Releases Activity Plan
BOCOG released its “Beijing Olympics Activity Plan” on June 13, which mirrors announcements released in the March 2002 “Olympic Action Plan.” The five-part activity plan restates BOCOG’s three-stage timeline for venue and Olympic-related infrastructure projects. Stage one includes preparations and leadership group organization (December 2001-June 2003), stage two involves venue and facility construction (July 2003-June 2006), and stage three includes completion and testing (July 2006-summer 2008). The plan emphasizes the correlation between the economic development of Beijing and the successful staging of the games as well as the successful integration of Olympic venues into the city’s urban design plans. The plan also calls for Beijing to implement Euro II vehicle emission standards from January 1, 2003. For an English-language version of the plan see www.beijing2008.org/new_olympic/eolympic/plan.htm.

Olympics “Hot Sheet”
The Commercial Service office at the American Embassy in Beijing compiles news articles from the Chinese press on the 2008 Beijing Olympics in the form of a free online newsletter. Individuals interested in signing up for this newsletter can contact David Snodgrass via e-mail at David.Snodgrass@mail.doc.gov.

Planned Spending Rises
Chinese news media have reported that the budget for spending on environmental cleanup, infrastructure, and public works in advance of the Olympics will reach $6.9 billion, $150 million more than earlier estimates.

Olympics Slideshow
To view a 100-slide, 20-MB Flash presentation prepared by the Beijing Municipal Planning Commission on Beijing’s Olympics plans, visit www.bjghw.gov.cn/flash/guihua.swf.

 

—US-China Business Council staff