Sochi 2014 Set to Retain Innovative Approach in 2009

Russia’s Deputy Prime Minister Alexander Zhukov chaired the final Sochi 2014 Supervisory Board of 2008 in the Russian House of Government. The last Supervisory Board meeting of the year analyzed the progress made by the Organizing Committee in 2008.

At the start of the meeting the Chairman of the Supervisory Board, Russia’s Deputy Prime Minister Alexander Zhukov, said:

“I am confident that we are laying a strong foundation, which will ensure the Olympic and Paralympic Games in Sochi are staged to the highest level.”

The President and CEO of Sochi 2014, Dmitry Chernyshenko, presented a detailed report about all activities the Organizing Committee undertook in 2008, he also spoke about plans and key projects that will be implemented in 2009. In his speech he said:

“During the first year of the Organizing Committee’s work we not only followed all the recommendations of the International Olympic Committee (IOC), based on the experience of the previous Games, but also developed and implemented innovative solutions that will lead to an unprecedented legacy for the Olympic Movement. We have already commenced work on Sochi 2014’s 36 functional areas, and in 2009 we will launch 300 new projects. This exceeds the IOC’s expectations.”

Russia’s Deputy Prime Minister Dmitry Kozak, who supervises the preparation for the Olympic and Paralympic Games 2014 in Sochi, added:

“In early December we were in London and personally saw the preparations for the Games in 2012. In particular, we saw the Olympic venue construction. As the British are two years ahead of us we were able to see the challenges that we may face in 2010, because today, London is in our equivalent of 2010. According to our plan, the massive construction of Olympic venues in Sochi will start no later than 2009 and will be completed by 2012 – we are confident we will meet our plans.”

In his report Mr. Chernyshenko noted that in 2008 the Organizing Committee achieved progress in many key areas. It will allow the Organizing Committee to move from the basic planning stage to the operational planning stage. He also highlighted that the Games Foundation Plan – one of the key documents the Organizing Committee creates during the preparation for the Games – was submitted to the IOC.

Sochi 2014 key projects in 2008 include:

• The creation of an effective management system for the 7,000 projects involved in the preparation of the Games;

• The implementation of intellectual property protection has come into force in Russia due to the forth part of the Civil Code. Together with the Olympic law, enacted in late 2007, it will provide full legal protection to the Olympic and Paralympic symbols;

• The experience of the Beijing Olympic and Paralympic Games were analyzed in order to integrate solutions developed by the Beijing 2008 Organizing Committee to the functional areas of Sochi 2014;

• The plan of Sochi 2014 sports venues – including all training facilities – were approved by the IOC. This included the approval of more than 100 technical specifications and requirements for most venues and infrastructure;

• The IOC agreed with the basic parameters of the Olympic transport infrastructure. During Sochi 2014, the Organizing Committee will ensure the smooth transportation of approximately 250,000 people per day to the competition venues, and the effective management of more than 7,000 units of transport. That’s why the Olympic Transport Board is being established;

• Currently, the introduction of corporate planning and management is being implemented within the Organizing Committee. The introduction of ERP solutions (Enterprise Resource Planning), which supports the Organizing Committee’s functions (accounting, budget control, procurement management, personnel management and many more areas), is playing an important role in the process. Moreover, for the first time in Olympic history, Sochi 2014 plans to transfer its solutions to the IOC for use by future Organizing Committees;

• Sochi 2014 introduced a system of financial reporting, which fully meets the requirements of both the IOC and Russian law.

During the meeting the financial plan for 2009 was approved. It fully complies with the financial situation in the world.

Dmitry Chernyshenko said:

“We have approved a financial plan for 2009. In the face of a difficult macroeconomic situation, Sochi 2014 will use an innovative approach towards all its functions, especially in finance. This year the State Duma adopted a law which simplifies the procedure of obtaining work permits in the Organizing Committee for foreign citizens. This law allows us to employ the best international experts instead of using expensive external consultants.”

In 2009, Sochi 2014 will start a program of attracting companies to become a Sochi 2014 Partner. The selection of partners will be conducted on a competitive basis and in the beginning of 2009 will take place in the categories of metals, apparel, banking, oil, gas and telecommunications. This will allow the Organizing Committee to finance the preparation and staging of the Games independently, through the strong marketing potential of Olympic and Paralympic symbols.