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Ukraine will be ready to host Euro 2012
Stephen Bandera, Kyiv
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Ukrainian President Victor Yushchenko
kicks off ceremonies on Sept. 14 to open the renovated Dnipro Stadium
in Dnipropetrovsk (kyivpost.com)
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Nation still faces many challenges in finding $32 billion
for infrastructure improvements to host European soccer championship.
After a celebration on Sept. 14 in Dnipropetrovsk to mark the renovation
of a soccer stadium that will host matches for the Euro 2012 championship,
Ukrainian officials are upbeat that their country is on track to co-host
the major tournament with Poland.
The stadium is owned and was reconstructed with the financial backing
of billionaire Ihor Kolomoiskiy, one of several rich and soccer-crazed
businessmen who are pumping money into new stadiums and other preparations.
Co-hosting the major tournament is expected to cost Ukraine $32 billion,
with roughly two-thirds coming from private sources such as Kolomoiskiy.
Ukraine has high hopes that the popular, weeks-long spectacle will pay
off big - in infrastructure improvements, such as better hotels, roads
and airports, as well as increased tourism.
However, significant challenges are still ahead, including the massive
task of building a brand new stadium in Lviv within three years and reconstructing
airports in five cities earmarked to host the games.
A Sept. 16 Reuters report suggested the Union of European Football Associations,
Europe's soccer governing body also known as UEFA, will rebuke both Ukraine
and Poland again next week over slow progress. But the organization, at
its Sept. 25 meeting, is expected to stop short of withdrawing the two
nations' designation to stage the event.
Earlier this year speculation was rife in domestic and foreign media that
Ukraine may lose the opportunity to co-host the 2012 European football
finals. The bad press resulted in a host of other countries, including
Scotland, Ireland, Italy and Germany, jumping at the prospect of taking
Ukraine's place.
The rumors subsided after inspectors from UEFA visited Ukraine late last
month and noted that significant progress had been made. For example,
a shopping mall that was being built next to the championship game venue,
Kyiv's Olympic stadium, is finally in the process of being demolished.
And in recent weeks, the reconstruction of this massive stadium, capable
of seating some 80,000 fans, kicked off.
Still, Euro 2012 skeptics argue that the current standoff between President
Victor Yushchenko and Prime Minister Yulia Tymoshenko could influence
a final verdict from UEFA's executive committee.
Deputy Vice Premier Ivan Vasiunyk and Hryhoriy Surkis, the president of
the Football Federation of Ukraine, claim that this is nonsense.
Vasiunyk and Surkis gave a joint press conference on Sept. 15, three days
before the Ukrainian delegation travels to Switzerland to present the
government's progress report to UEFA. 'In fact, Euro 2012 will set the
political climate, not vice versa,' Vasiunyk said. 'It will be a source
of stability:the pro-governmental coalition and the opposition all speak
in one voice when it comes to Euro 2012.'
Before the football tournament is held, Ukraine is scheduled to undergo
parliamentary and presidential elections. 'But the president of the football
federation will remain the same for the next four years,' Vasiunyk said,
referring to Surkis.
Surkis pointed out that Euro 2008 went ahead in Austria despite a 'politically
stormy season' that resulted in the collapse of that country's governing
coalition days after the championship ended.
'Work is being done and it needs to be accelerated,' said Dirck Smits
van Oyen, who developed the proposal for Ukraine and Poland to host the
tournament.
Smits van Oyen, now running a Kyiv-based consultancy that aims to help
foreigners navigate unchartered investment waters ahead of the football
championship, was upbeat.
'There is no reason to fear a reverse decision,' Smits van Oyen said.
'The political situation does not help right now, but UEFA ultimately
doesn't care if there are snap elections. What is important is that there
is a functioning government in place, allocating the necessary budget.
This is not happening sufficiently. Projects are not being implemented.'
There are also fears that Ukraine may end up hosting only a quarter of
the 32 matches in June 2012, a blow to tourism revenue. During Euro 2008,
held earlier this summer, the average visitor spent more than three nights
and 1,000 euros in Austria and Switzerland, according to UEFA. Austria's
hotels saw more than 8 million overnight stays during the month of Euro
2008.
A study conducted in Portugal two years after it hosted the Euro 2004
championship found that the number of tourists increased by 10 percent
every year since then.
'Portugal was already a popular tourist destination,' Smits van Oyen said.
'With Euro 2012, many tourists will discover Ukraine and Poland for the
first time, so the impact will be much bigger.'
However, concerns about infrastructure and stadium readiness are expected
to be on the agenda when UEFA's executive committee meets in Bourdeaux,
France on Sept. 25.
Prior to a UEFA inspection trip in July, Ukrainian soccer officials had
said that Donetsk, Dnipropetrovsk and Kharkiv were furthest ahead in preparations.
Dnipropetrovsk has already opened a refurbished stadium and reconstruction
of stadiums in Kharkiv and Donetsk are not far behind. Most problematic,
according to experts, are the state of the stadiums in Kyiv and Lviv.
After a year of legal wrangling, the reconstruction of Kyiv's stadium
has begun. A German company, GMP von Gerkan, Marg und Partner, and the
Kyivmiskbud holding company are removing the unfinished shopping center
beside the stadium that is scheduled to host the final match of the tournament.
The plans also include reconstruction of the stadium's lower level to
be complete by June 2010.
Another big concern is the lack of hotel space in Kyiv and other cities.
But investors are making progress in developing brand new capacity.
UEFA expects 3,000 five-star rooms and 4,500 lesser-quality rooms in Kyiv.
While Ukrainian officials admitted the shortcoming, they pointed out that
the Fairmont and Intercontinental chains will together provide more than
500 five-star rooms, while 30 new hotels will be built and 20 existing
ones will be renovated by 2012 - more than enough to fulfill the requirement.
There is also concern that Donetsk is 1,500 five-star rooms short.
The situation in Lviv is even worse, because there is no stadium yet.
There is an empty field where a 30,000 seat stadium should be by March
2010. The city decided it will finance construction with municipal bonds,
instead of looking for outside money. In early August, the city council
earmarked Hr 80 million for the stadium's construction.
In terms of stadiums, Ukraine is further ahead than Poland, but Smits
van Oyen said that both countries will meet the requirement on time.
Lviv's other headache is its tiny airport. The World Bank said it will
pay for its overhaul. The business plan is being developed by an international
consortium comprised of Corporate Solutions, ScanAvia A/S, the Ukrainian
State Aviation Service and Lviv City Council.
The verdict on Lviv and other cities will be delivered during the Sept.
25 executive committee meeting in France. Ahead of that meeting, Polish
President Lech Kaczynski and Prime Minister Donald Tusk will meet with
their counterparts in Ukraine. There are fewer concerns about Poland's
abilities, because the European Union is expected to provide the funds
for developing infrastructure in the country.
Smits van Oyen said that in Ukraine, 80 percent of the investments are
expected to come from the private sector and the balance from state coffers.
He said that institutional investors such as the World Bank and European
Bank for Reconstruction and Development will provide support.
Anton Usov, communications adviser to the EBRD, said that the bank is
not looking into providing loans specifically for Euro 2012, but is seriously
considering a number of projects for infrastructure development.
'We are certainly looking into ways to fund infrastructure, but not necessarily
for Euro 2012. We are interested in projects that will work for many years
after,' Usov said. 'All the host cities - from Lviv to Donetsk - badly
need major infrastructure upgrades.'
The EBRD is looking to finance airports, bus terminal, roadways and railways.
They are predominantly state-owned projects, and account for a significant
share of the roughly $25 billion investment needed to prepare for the
tournament.
KyivPost,
18th September 2008
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