Estimates of the additional cost caused by inflation on the budget of the Organizing Committee for the Olympic and Paralympic Games (Cojop) are in progress. One thing is certain: this impact will be “over 150 million euros” already recorded by the Olympic Works Delivery Company (Solideo), the other structure – responsible for the construction of the sites – created to set up the event, declared, Wednesday, November 2, the Minister of Sports and the Olympic Games and Paralympics, Amélie Oudéa-Castéra.
“ The estimates are being refined, but we will be in an envelope greater than what we were able to record at Solideo and its 150 million euros “explained M.me Oudea-Castera before the senators, to whom she presented her draft budget for 2023. “Unlike Solideo, 50% of Cojop contracts have yet to be concluded. There is a structural exposure which is stronger for the organizing committee”she added.
Payroll, “an important point of attention”
The presentation of an updated budget by the Cojop (3.98 billion euros at present) is scheduled for December 12 at a meeting of its board of directors. The last multi-annual budget review took place in December 2020.
Since then, a number of things have evolved. And inflation is therefore not the only element to be taken into account. “A very detailed costing is underway of the discrepancies that may have been linked to changes in the project”underlined, in this regard, Ms. Oudéa-Castéra.
The Minister notably cited the creation of“an opening ceremony for the Paralympic Games”, “changes to the map of competition venues”, “the elements related to private security, which we know is a job under pressure, with a recent agreement aimed at raising wages (+7.5%) in this sector”or ” payroll ” of the Cojop, an element which had not been updated in the December 2020 revision”.
On this last point, Mrs Oudéa-Castéra underlined that it is a matter of“an important point of attention in the context of inflation that we know and of tension on these expertises, at a time when these sports expertises are in great demand on the market”.
“Sometimes painful arbitrations in terms of savings”
“The budget should in any case be as close as possible to balance”insisted the Minister, while noting, as she had already done on October 12 before the senators, that “we will certainly need to mobilize part of the contingency reserve for this” of 315 million euros, which appears in the Cojop budget.
“We will have to seek new partners” financial and “we will have to have fruitful discussions with the International Olympic Committee”, in particular to revise certain requirements downwards, she also developed.
But she also warned: “we will have to make decisions that are sometimes difficult, painful, courageous in terms of savings to be made on the Cojop budget”.