Vancouver says strong C$ not a problem
20/09/2007 |
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Organizers of the 2010 Olympics discounted fears on Wednesday they have been stung by the soaring Canadian dollar, which is now far stronger than when Vancouver was awarded the Winter Games.
The Vancouver Organizing Committee (VANOC) also confirmed it will dip into its contingency fund to cover rising costs at a planned athlete facility near the Whistler mountain resort, but said its construction budget remains on target.
The Canadian dollar is nearly at par with the U.S. dollar for the first time in more than three decades, but VANOC officials say they have adequately protected their C$1.1 billion operating budget.
VANOC's costs are largely in Canadian dollars, but revenue from international sources comes in U.S. dollars.
A Canadian dollar was worth only about 72 U.S. cents when Vancouver was awarded the Olympics in July 2003. On Wednesday, it closed at 98.5 U.S. cents after topping 99 U.S. cents in overnight trade.
"The significant dollars that will come into us in U.S, currency have been hedged (against fluctuations)," executive vice-president David Cobb told reporters at VANOC's regular board meeting in Whistler.
Cobb said some sponsorship deals have not been hedged, but those largely involve non-currency payments such as traded services.
Organizers have not begun ticket sales for the 2010 Games, but international interest remains high, official said.
VANOC's board approved taking C$26 million from its C$54 million construction contingency fund, nearly all of which will be used to cover higher than expected costs in building the Whistler Athletic Centre.
The facility, being built on the town's former landfill site, was originally expected to cost C$16 million but that is now expected to top C$30 million.
The higher costs are due, in part, to an increase in the number of athletes and officials who will have to stay at the facility. Whistler, about 120 km (75 miles) from Vancouver, will be the site of several events, including alpine skiing and bobsleigh.
VANOC said its overall C$580 million construction budget remains on target because the contingency fund was part of it. "Our confidence level is extremely high," chief executive John Furlong said.
The construction budget does not include millions of dollars being spent by governments on a related mass transit system, an upgraded highway to Whistler from Vancouver and a new convention center.
(Source: Reuters)
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