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### Viewing cable 08VANCOUVER76, TWO-YEAR COUNTDOWN TO THE VANCOUVER WINTER OLYMPICS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08VANCOUVER76 | 2008-04-04 16:04 | 2011-04-28 00:12 | UNCLASSIFIED | Consulate Vancouver

`

    VZCZCXRO3821
    RR RUEHGA RUEHHA RUEHQU
    DE RUEHVC #0076/01 0951648
    ZNR UUUUU ZZH
    R 041648Z APR 08
    FM AMCONSUL VANCOUVER
    TO RUEHC/SECSTATE WASHDC 4884
    INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
    RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
    RUEHVC/AMCONSUL VANCOUVER 7235

` `

    UNCLAS SECTION 01 OF 03 VANCOUVER 000076

    SIPDIS

    SIPDIS

    DEPARTMENT FOR WHA/CAN, DS/P/MECU

    E.O. 12958: N/A
    TAGS: CA KOLY PGOV ECON ASEC
    SUBJECT: TWO-YEAR COUNTDOWN TO THE VANCOUVER WINTER OLYMPICS

    VANCOUVER 00000076  001.2 OF 003

    ¶1. Summary:   This is the first of two cables assessing
    preparations as Vancouver passes the two-year mark in its
    countdown to the 2010 Winter Olympics.  Organizers and officials
    are giddy with satisfaction over the preparations for the Games
    thus far. All major sporting venues are complete or will be
    completed by the end of 2008, an unprecedented milestone. The
    initial call for 25,000 volunteers resulted in 10,500
    applications the first day alone. The Vancouver Olympics
    Committee (VANOC) finances appear healthy and sound, with
    construction almost complete and the sponsorship targets at 90
    percent. Critics continue to hammer both VANOC and the city for
    misuse of public funds and lack of effort to incorporate more
    socially responsible activities into the program. As VANOC moves
    away from construction into operations more issues are surfacing
    regarding accommodations and staffing.  Big questions remain on
    the shape of cross-border management of the tens of thousands of
    visitors expected for the event, which we will address in a
    separate cable. Overall VANOC and its public and private
    partners are well poised to bring about one of the most
    financially successful, environmentally friendly and socially
    responsible Olympics in history. End Summary.

    --------------------------------------------- -------------
    Responsible, Sustainable and Profitable
    --------------------------------------------- -------------

    ¶2. With the competition venues substantially complete, VANOC is
    moving from a construction to an operations phase. The
    organization has reached 604 employees and achieved C$ 709
    million in domestic sponsor agreements with a final goal of C$
    760 million in sponsorships. Financial statements for the second
    quarter show a cash balance of C$ 56.5 million plus a hefty
    construction contingency in place. The major projects still
    underway include two training facilities and the two Olympic
    Villages, one in Whistler, the other under construction in the
    False Creek area of Vancouver.

    ¶3. Contributing to VANOC's rosy construction and financial
    picture is the fact that several Olympics-related construction
    projects, such as the new convention center, the Canada Line
    metro and the Sea-to-Sky highway between Vancouver and Whistler,
    are not VANOC projects. Provincial officials tell us that only
    one-third of one percent of the C$148.1 billion in big
    construction projects ongoing in BC is Olympics-specific
    projects. They note that many of these big ticket projects were
    already in the planning stages prior to the Olympics' bid. The
    Olympics just provided the catalyst to get them moving forward.
    But it is these big, primarily publicly-funded projects that are
    the focus of much of the criticism. The convention center has
    already nearly doubled in price, from an original estimate of C$
    496 million to C$ 883.2 million. The Canada Line project has
    left a gaping trench on one of Vancouver's main north-south
    thoroughfares and caused severe economic hardship, including
    closures, for many businesses located on this road.

    ¶4. The city and province are also receiving harsh criticism for
    funneling money into these projects and neglecting other issues,
    such as the lack of affordable housing in the Vancouver area.
    VANOC, the city and the province have mounted a massive
    publicity campaign to present themselves as the most
    socially-responsible Games ever seen.  One way the city has
    addressed this is by including both Olympic Villages in a legacy
    plan to provide additional affordable housing. The Whistler
    Village is to be turned over to that city and made available as
    housing for the resort area's labor force. The Olympic Village
    in Vancouver has already been sold to a developer with 250 units
    guaranteed for low-income housing once the Games have ended.
    Rumors persist that as the Games approach, residents, especially
    low-income, will be forced out of their homes as landlords
    attempt to cash in on the Olympics' housing crunch.  Social
    activists are blaming VANOC for not instituting programs to
    prevent people from being displaced.  However, in its most
    recent sustainability report, VANOC strongly defended its record
    and stated that it is not responsible for fixing the city's
    social problems.  The organization will focus on six areas that
    are under its control: accountability, social inclusion and
    responsibility, environmental stewardship, economic benefits,
    aboriginal participation and collaboration, and sport for
    sustainable living.  Along with the sustainability report, VANOC
    announced measures to guarantee manufacturers of Olympics
    merchandise meet a code of conduct governing working conditions
    in the mostly Chinese factories.  After the first round of
    audits just concluded, six factories were banned for failing to
    meet the standards.

    ¶5. As part of its sustainability commitment, VANOC has created
    an environmental plan for the Olympics, including a Carbon
    Management Strategy. It signed an agreement with BC Hydro to
    provide clean power and programs to ensure energy efficiency and
    conservation. By using hydroelectric power, VANOC touts it will

    VANCOUVER 00000076  002.2 OF 003

    have less than ten percent of the emissions of previous Winter
    Games.

    ¶6. VANOC is also working hard to be inclusive across the
    country, reaching out to provinces and First Nations to ensure
    the Games engage every Canadian. The organizing committee has
    signed MOUs with New Brunswick, Manitoba, Prince Edward Island,
    Newfoundland and Labrador, Quebec and the Northern Territories
    and is in negotiations with other provinces. The MOUs encompass
    language, sports development, culture, volunteerism, tourism and
    economic development. VANOC also recently concluded an
    Aboriginal Licensing and Merchandising Agreement with the Four
    Host First Nations that will allow aboriginal artists to use the
    Olympics symbols in their work. In addition, representatives of
    the First Nations sit on the Board of VANOC, giving them
    significant input into the planning.  Closer to home, the city
    of Vancouver just announced a C$ one million fund available for
    local communities to pay for events celebrating or promoting the
    Olympics.

    -----------------------------------------
    Opportunities Abound but~.
    -----------------------------------------

    ¶7. There are still millions of dollars in opportunity for local
    and regional companies to cash in on the Games.  Of the
    estimated 6000 contracts to be issued by VANOC for goods and
    services, only a little more than 600 have been signed thus far.
    Companies need to act fast, however, as the rate of issuance of
    new RFPs has increased dramatically in the past two months.
    Primary consideration is being given to Canadian companies. But
    with an event of this size, many firms are finding that they
    have the product or service but not the capacity to meet the
    demand. U.S. companies are gaining a foothold in the door by
    partnering with local companies to win contracts. The Foreign
    Commercial Service Office in Vancouver worked with a Washington
    state supplier of portable toilets to win a large 2010 Olympics
    contract.  The Washington state vendor had expertise gained
    during the Salt Lake Winter Games plus inventory but lacked
    local facilities or access to disposal dumps.  The vendor
    identified smaller Canadian companies that had the local access
    but not the capacity.  A consortium was formed and their bid won
    the contract. Regional organizations are also galvanizing
    support for the Games. The Pacific Northwest Economic Region
    (PNWER) e-mailed every National Olympics Committee (NOC) around
    the world with information about training facilities in the
    region for winter athletes. VANOC officials later told us they
    were surprised to hear that members of the French winter
    Olympics team were practicing in Washington. They did not
    realize the efforts being made next door to take advantage of
    the event.

    ¶8.  Staffing is becoming a key issue for VANOC.  Although
    initial response to calls for volunteers has been tremendous,
    organizers worry that 20-30 percent will drop out before the
    Games even begin.  VANOC has reached out to the international
    community especially to attract volunteers with foreign language
    skills, particularly in the hard Asian and Slavic languages. A
    dilemma is building in the mountain resort town of Whistler as
    more and more locals take advantage of offers to rent
    homes/condos during the Games.  With so many residents leaving
    during the Games, there are not enough people left to fill all
    the vacancies needed on the volunteer list.

    ¶9.  Accommodations are also proving an opportunity and a
    problem.  As mentioned above, Whistler residents are being
    offered tens of thousands of dollars for short-term rent of
    residences during the Games.  Organizers always have maintained
    that housing would be a problem in Whistler, with the hotels
    already dedicated to the Olympics family leaving only private
    residences for everyone else. Early on a proposal was made to
    use cruise ships moored at Squamish to support the overflow,
    including any overflow from the Olympics family itself, but
    VANOC quickly determined it would not be necessary, at least for
    them.  Cruise ships are still being discussed by tour operators
    and other entities to meet their Whistler housing needs.  On the
    positive side, accommodations in Vancouver still appear to be
    plentiful.  Studies conducted by Western Washington University
    indicate there will be enough hotel rooms in the greater
    Vancouver area to handle the demand, which is estimated to be
    less than a normal peak summer period.

    10.Comment: The completion of competition venues on schedule and
    on budget has left VANOC in high spirits.  But there are so many
    details to be worked out that nobody is resting yet.
    Preparations are entering a phase now where the pace begins to
    quicken and it is critical that all interested parties stay on
    top of the plans as they develop.  VANOC will be ramping up its
    staff and we anticipate even more interactions on commercial,
    transport and border-management issues.  CONGEN Vancouver is

    VANCOUVER 00000076  003.2 OF 003

    working to create the USG Olympics Liaison office and we hope to
    open by end of summer, with personnel starting to arrive as
    early as June.  Dedicated personnel will go a long way toward
    helping us engage VANOC and city and provincial officials on the
    many issues of mutual concern to make this a truly successful
    regional and international event.  End Comment.
    LUKENS

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