2023-06-21 20:38:26
The Court of Auditors estimates in a new report that the budget for the organization of the Paris Olympic Games was ” underrated “ at the start and that there will no doubt still be “optimization efforts to be made” by summer 2024.
In this final report, the Court of Auditors considers that ” two-thirds “ the increase in the budget, which rose to 4.4 billion euros at the end of 2022, “result not from a drift in management or an inconsiderate development of the project but from an obvious under-estimation of the bid budget and from an incomprehensible ignorance of the complexity of the specifications of the IOC (International Olympic Committee) ( …)».
The 2022 budget revision (+400 million euros, partly due to inflation) “was conducted in a transparent and rigorous manner” by the committee, “in close relationship with the IOC and the IPC (Paralympic movement) and with strong state involvement”.
The Cojo presents to the State each month a follow-up of the budget, calls for tenders, payroll, and risks, etc. The State is in fact a guarantor in the event of a Cojo deficit.
But despite the efforts made, the magistrates of the Court of Auditors consider that it is not excluded that it is necessary “further measures to reduce service levels to ensure final budget balance” and note that “substantial uncertainties remain on the final level of resources”.
“It is imperative to conclude with LVMH”
With regard to partnerships, which account for almost a third of the Cojo’s budget (1.24 billion), some “337.2 million euros remain to be secured, which means concluding the partnership with LVMH, announced at 140 million but still not signed”. “We must continue the optimization efforts undertaken on the management of sites and infrastructures”also adds the Court.
In her January report, she expressed concern about a « retard » in the signing of contracts, in particular with competition sites, a delay “in the process of being absorbed”, she greets. Furthermore, she reiterates that “all costs” be “consolidated” to have the total amount of the invoice, which for the moment is not possible to establish.
Regarding private security, she noted that despite “the combined efforts of the Cojo, the State and the professional branch, the risk that several calls for tenders will remain unsuccessful is real”notes the Court. “The now probable recourse to internal security forces and armies to make up for this deficit must therefore be anticipated” and decided “no later than October 2023”she adds.
Another crucial point: transport, while some stations are still under construction, such as on line 14, must imperatively open for the Olympics and transport in the Ile-de-France region is experiencing difficulties.
“Beyond the question of transporting spectators and the image issue that the completion of the various projects represents for the organizers of the Games, these infrastructure projects remain essential to ensure the fluidity of flows during the Games”notes the Court, which calls for “overall governance that remains effective and operational”.
With regard to Solideo (the Olympic facilities delivery company), “certain works, affected by delays (athletes’ village, media village, Porte de la Chapelle Arena, etc.), are subject to optimization of schedules and reinforcement measures (extension of timetables, increase in numbers) to absorb them”.
“If they were to persist, the reception dates could be postponed by a few weeks, thereby limiting the period for lifting reservations before the Cojo is made available and the latter carries out the temporary facilities”adds the Court of Auditors.
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