Beijing offers slice of $168b Games pie
biz.scmp.com
BEI HU
Foreign companies are to be given fair opportunities in bids for infrastructure projects aimed at giving Beijing a facelift ahead of the 2008 Olympic Games.
Beijing mayor Liu Qi made the pledge upon unveiling a record 180 billion yuan (about HK$168.66 billion) municipal-spending plan for basic infrastructure projects in the next five years, the China Daily reported yesterday.
Municipal officials hope preparatory work for the Olympics lures more foreign investment and helps strengthen Beijing's world economic links.
The city's investment plan is just part of China's Games budget. Another 13 billion yuan to 16 billion yuan is expected to be spent on new sports facilities.
Bankers forecast public and private sector spending related to the Olympics to add as much as 0.3 per cent annual growth to China's gross domestic product over the next seven years.
Mr Liu's comments should be music to the ears of a long line of foreign companies queuing for a share of the economic perks of a successful Beijing Games bid.
Australia, which beat Beijing to hold the last summer Olympics in Sydney, expects to reap a windfall of US$1.5 billion from selling knowledge about staging a successful Games. Some Australian companies have reportedly already won advisory contracts. They have also reportedly won contracts for construction, environmental-related and logistics activities.
United States car-maker General Motors has signed a four-year exclusive car sponsorship agreement with the Chinese Olympic Committee, according to the New York Times.
However, China seems to be just beginning to cobble together a concrete Games' balance sheet.
The government has tabled a scheme to raise US$180 million through lotteries during the next seven years. The first batch of lottery tickets was expected to be on sale by the middle of next month, the Wen Wei Po daily reported.
More details of China's Olympic budget are expected to emerge gradually in the next few months, but the Games will for sure receive huge subsidies from the state and municipal governments, which are eager to use the event to burnish their images.
Beijing-based China Economic Times, has projected the Games could count on a revenue of 45 billion yuan from selling satellite broadcast rights.
They would also generate tourism revenue of 170 billion yuan during the next seven years.
Beijing's massive investment plan has stirred excitement in the mainland stock markets.
Construction-related stocks strengthened as mainland exchanges re-opened in the wake of the announcement. Shares of Shanghai-listed, Beijing-based contractor and developer CRBC International surged 10 per cent to 18.10 yuan. Shenzhen-listed Beijing New Building Materials Public closed up 4.8 per cent at 17.03 yuan.
Half Beijing's planned expenditure on infrastructure, or 90 billion yuan, will be injected into transportation projects.
These will include construction and renovation involving the subway, light rail, highways and the airport.
A quarter of the spending, or 45 billion yuan, will go into improving the environment.
Municipal officials have earmarked another 30 billion yuan to improve the city's information technology system. Improvements to municipal water, power, gas and heating supplies are expected to absorb the rest. |
