October 12, 2015

Olympic infrastructure becomes heavy burden for Sochi budget, experts believe

In Sochi, the expenses for the maintenance of the facilities built for the 2014 Olympic Games are mainly born by the budgets of the city and the region, and the expenses spend for the maintenance still exceed the revenues generated from their operation. This opinion was expressed by experts interviewed by the "Caucasian Knot".
Natalya Zubarevich, Associate Professor of the Higher School of Economics (HSE), has told the "Caucasian Knot" correspondent that the main part of the Olympic facilities is maintained from the regional and city budgets.
"The maintenance of the Olympic facilities takes a lot of funds, and their intensive year-round operation is not possible. So, now, Sochi hosts a variety of events, including meetings of boards of directors, government officials, and businessmen," Natalya Zubarevich has said.
She has noted that the summer vacation season in Sochi lasts three-four months; however, the facilities are to be maintained for the entire year. According to Natalya Zubarevich, even prior to the development of the Imereti Lowland, it was clear that "all the facilities were unprofitable."
Political analyst Dmitry Oreshkin believes that the Sochi facilities never claimed not only for the commercial profit, but even for the payback of the investment.
"Initially, it was reported on the plans to optimize the infrastructure in the city, attract tourists, and thus make profit. That was propaganda. Yes, the new roads and houses are built; however, they are no longer justified against the backdrop of the crumbling economy and the reduction in effective population," Dmitry Oreshkin has told the "Caucasian Knot" correspondent.
Andrei Serenko, Chairman of the Advisory Board of the Foundation for Studies of Electoral Politics, has emphasized that the Olympic facilities actually put pressure on the budget; meanwhile, their presence is essential for the development of the region.
"It's like development of space: it's expensive, but necessary. A 'load' and a 'base for intensive development' do not contradict each other. They are two sides of the same coin," Andrei Serenko has told the "Caucasian Knot" correspondent.
Full text of the article is available on the Russian page of 24/7 Internet agency ‘Caucasian Knot’.
Author: Oleg KrasnovSource: CK correspondent

Source: http://eng.kavkaz-uzel.ru/articles/33269/
© Caucasian Knot

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