Over-budget Olympics projects draw fire

ROD MICKLEBURGH August 23, 2007 Globe and Mail

VANCOUVER -- NDP Olympics critic Harry Bains ripped into VANOC officials yesterday for allowing some venue construction projects to go over budget. "Either they are not competent, or they are not trying," Mr. Bains said after last week's disclosure that the Whistler Athletes' Centre, designed to house alpine competitors, is expected to more than double its original $16-million price tag. The soaring construction cost will force the Vancouver Olympic 2010 Organizing Committee (VANOC) to dip into its $53.3-million contingency fund for as much as $25-million. Although VANOC says that it still expects to meet its overall construction budget of $580-million, Mr. Bains said he is not satisfied. Noting that Games organizers have already siphoned some money from the contingency fund to meet smaller cost overruns on other projects, Mr. Bains argued that not a single Olympics venue should have gone over budget, even if the overall $580-million target is met. "These budgets were all set only a year ago. What went wrong?" The NDP member added that the contingency fund should not be used to bail out venues that go over budget, should be reserved for unexpected costs beyond VANOC's control.

Dave Cobb, acting CEO of VANOC, dismissed Mr. Bains's allegations. "It's unfortunate that some of our critics do not educate themselves before commenting on our projects," he said. He said VANOC always anticipated that its separate contingency fund, once as high as $66.8-million, would be drained to meet unexpected construction costs. "We remain extremely confident that everything will be completed within our total, $580-million budget," Mr. Cobb said, regardless of whether the final price of each venue meets its individual budget. "That's the most important thing for taxpayers." He said the final cost of the Whistler Athletes' Centre will be determined once VANOC decides how to accommodate a demand from the International Olympic Committee for 800 additional beds. "We have the money, but we have to determine whether to build a temporary structure [for the extra beds] or something more permanent."