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