«To break the project even — anyway, that's something!»
¹ 4 (2009)
Whether it will turn out so, that some companies, which are in the most difficult economic situation, would take their words back, and the main burden of creation of Olympic objects, the state would have to shift onto itself?
It is not the problem, whether the companies will participate in realisation of Olympic projects. The problem is in their commercial part.
If Olympic objects are deprived of a business component and are turned into «obligation», «the kickback» scheme inevitably will start to work in big companies. That is, the state will help somewhere and will give state guarantees, but in return will demand to invest into socially significant object, even unprofitable. In this case appears the dilemma for business: whether to accept the help or not?
Projects, where business participates, should have minimum commercial component at least, to break even at least. It is necessary for everybody to think now how to raise the attractiveness of Sochi for the investors.
Do you have formula?
In particular, the problem could be solved by transferring of southern gambling zone from the border of Rostov region and Krasnodar regon to Sochi to floating islands, and transformation of it into exclusive. For it to be Russian Las Vegas really. The offered measure would give also additional means for the Olympic Games. The approach of organizers of the London Olympic Games of 2012 is instructive. The main question they ask themselves: what will be after the Games? Whether Olympic objects will fit into country life after the Olympic Games? Because, only in this case, there is additional justification for their building.
If the application of Sochi was not considered in 2007, before crisis, but now, do you think, Russia would be so insistent in its intention to hold the Olympic Games?
Well, we have made the application for holding football World championship
You don't have to be the prophet to expect: all companies participants of Olympic building can suffer losses. But the method of modeling of competent commercial chains will give them possibility to gain from other projects to compensate the Olympic Games losses. The case is not any superprofit breaking the project even anyway, that's something.
Author: Maxim Fedorov