Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Lower Construction Costs Cut Olympic Bill by 15%

APKozak discussing the Sochi Olympics at a meeting with Putin on Tuesday.��
Government spending on venues for the 2014 Olympic Games in Sochi has dropped 15 percent on cheaper construction costs, Deputy Prime Minister Dmitry Kozak said Tuesday.<br><br>Kozak had earlier predicted that expenses would fall by 10 to 15 percent because of sharp drops in the prices of certain materials, such as cement.<br><br>Budgetary constraints have called into question the state's ability to fund the projects and has stepped up the pressure to attract private investors, who have started showing interest after a plan was developed outlining the long-term use of the venues. <br><br>Four Olympic venues will be previewed to investors at a real estate fair in Cannes next month, Kozak said at a meeting with Prime Minister Vladimir Putin. <br><br>Possible long-term uses of the Olympic venues include a training base for Russian athletes, a children's aquatic park and a sports complex, Kozak said.<br><br>"Our Russian investors are expressing interest in this," he said. If an agreement is reached, the state will save another 25 billion rubles, he said.<br><br>Olimpstroi, the state corporation in charge of construction for the games, extended the deadline Monday on tenders for two venues after investors demonstrated interest in the projects. <br><br>The government is still hoping that the Olympics can help create jobs. Kozak said he wrote to regional governors on Tuesday telling them to encourage regional construction companies to participate in tenders for Olympic projects. "The Olympics are, first of all, creating conditions to keep jobs ... and not just for Krasnodar region," he said, adding that Olympic construction would create about 12,000 jobs.