Business Times

Sri Lanka's Commonwealth Games bid: Infrastructure to cost Rs. 265 billion

By Jagdish Hathiramani

While the most recent document pertaining to Sri Lanka's bid to host the Commonwealth Games in 2018 in Hambantota envisages a lavish yet sustainable spectacle, kicking off with an opening event on Wednesday, May 16, 2018, and continuing on to its closing on Sunday, May 27, 2018, there is an important question that some in Sri Lanka are asking. How much and for what?

Cost
Well, in the most simple terms, the answer to the main part of the above question is: Rs. 265 billion (at 2011 prices), according to Sri Lanka's bid document presented to the organisers of the Games in Kuala Lumpur of which a copy was obtained by the Business Times.

The bids, by Sri Lanka (Hambantota) and Australia (Gold Coast) were presented on May 11 during the Commonwealth Games Federation (CGF) executive committee meeting in Kuala Lumpur. The vote on the venue of the 21st edition of the Games will take place at the federation's general assembly in St. Kitts & Nevis on 11-11-11 (November 11, 2011). The 20th Commonwealth Games are being held in Glasgow, Scotland in 2014.

The expenditure will include the building of eight new sporting venues in Hambantota. All of which are expected to be ready in time for the proposed 2016 South Asian Games (SAG), where seven of these, at a total cost of Rs. 100 billion, will be first used (the cycling not being an event at SAG 2016 and so the velodrome not being needed). In addition, all new venues will be funded and, as such, ultimately owned by the Government of Sri Lanka. The sole exception being the proposed Commonwealth Games Village which will be co-funded and, so, co-owned by the state-controlled Sri Lanka Insurance and the private sector Environmental Resource Investments.

Further identified, Rs. 75 billion will go towards operating and capital expenditures specific to running the Commonwealth Games 2018 such as retaining staff, medical, security, catering, transport, ICT, ceremonies, other events, promotion, etc. Although, it has been stated that a third of these operating expenditures are slated to be recouped via local sponsorships (25%), ticket sales (1%) and broadcast rights (7%).

Other planned expenditures showcased in the bid document include Rs. 40 billion committed by the private sector for increasing hotel room numbers and related facilities, within travelling distance of Hambantota, to adequate levels. And Rs. 60 billion spent on a university in the area (as well as a business and IT park) which features prominently in the games' vision.

Also to be kept in mind, there will be even more infrastructure expenditures for the Hambantota district amounting to Rs. 265 billion for the development of an airport and a seaport, roads and railways and utilities and healthcare, all of which are slated to happen irrespective of the success of this one bid.

At the same time, there also exists a plan to commission a 132 kV grid sub-station at Suriyawewa to meet the 25 MW of electricity which will be needed. Further, a 2014 slated upgrade for the only venue already built, Hambantota's new International Cricket Stadium which was recently used for the first time during the 2011 ICC world Cup, which will double its capacity to 60,000 spectators, planned for use in the opening and closing ceremonies of the Sri Lanka-hosted Commonwealth Games 2018.

Meanwhile, it is also stated that sponsors have already been selected in a number of areas: Sri Lanka Telecom/Mobitel for telecommunications, Sri Lanka Insurance Corporation for insurance, Sampath Bank for retail banking, Ceylon Electricity Board for utilities, Premium American for drinking water, Browns Group for pharmaceuticals, automotive and household, LOLC for finance, Shermans for logistics, and John Keells for hotels. However, ultimately, there will be 35 local sponsors (five first tier, 10 second tier and 20 third tier) who will contribute approximately Rs. 18 billion in income to the games.

Grand vision

However, being prepared to pay top dollar does ensure that the second part of the question posed at the beginning of the article, the what, encompasses a sufficiently grand vision of things to come, and not only for Hambantota but also for the whole country. From the large-scale investments in infrastructure, hotels and what looks likely to be top-notch sporting facilities in Hambantota, to investments trickling down into healthcare, skills building, education, transportation and logistics, etc., especially for nearby communities, to even a new terminal at Bandaranaike International Airport, there is no doubt that no matter the cost to local taxpayers, there will be significant upgrades to the entire infrastructure of Sri Lanka.

Leading off with a promise of having all the venues ready in time for Sri Lanka's hosting of the South Asian Games in 2016, possibly a way to score points following the delays associated with the New Delhi Commonwealth Games in 2010, and playing up the fact that all venues would be "legacy" oriented and, as such, allow for the creation of a modern sporting city, the bid document also suggests a Sri Lanka-hosted 2018 Commonwealth Games will be sustainable, inclusive, secure, etc.

Further, and possibly to again tie into allegations regarding waste, fraud and ticket abuse in New Delhi in 2010 and the ICC World Cup 2011, there is a guarantee that a Sri Lanka-hosted 2018 Commonwealth Games will encompass a highly compact concept with minimum wastage - all but three venues will be integrated into the so-called "Commonwealth Games Park." Also, "a fair and equitable ticketing strategy focused on delivering full venues" via very affordable tickets and only public transport options intended to make the venues highly accessible to Hambantota's 1.2 million populace (as of 2018). Additionally, despite soon to be introduced new visa rules which will do away with visa on arrival, "gratis" visa on arrival will be provided for those travelling to Sri Lanka with a valid event ticket. And to cap all this off, a suggestion that awarding Sri Lanka the 2018 games will be a "great opportunity to market the games to new hosts." Meaning Commonwealth island nations who may otherwise not bid because they feel they can not compete against the likes of Australia, Canada, etc. Indicating that "improved transport infrastructure means that there is a population of three million within one hour and a further six million within 2.5 hours of the games park", the bid document also noted that this event will help to "develop the city of Ruhuna (city centre of the Greater Hambantota area) as a major transportation hub for South Asia, based upon the international Seaport, international Airport, new southern railway and southern highway - with possible connection to the proposed Asian highway."

Suggesting that a further legacy plan is forthcoming in June 2011, the bid document noted that prior to 2018 there would be a "comprehensive volunteer programme focusing on the district and building upon the volunteer programmes to be developed for both the South Asian Beach Games in 2011 and the 2016 South Asian Games in Hambantota." There would also be "sporting programmes including revisions to the school curriculum to include new Commonwealth sports and provide more opportunities for pupils to progress in their selected sports and sports development programmes. These programmes include coach/teacher development and sports facility developments across Sri Lanka's nine provinces."

Additionally highlighted as per the bid document, the introduction of educational programmes to "promote learning about the games, the Commonwealth nations and geopolitical issues. Activities such as inter-school debating, art and essay competitions will be used to promote educational awareness and raise the profile of the Commonwealth and what it means. The target age groups for these activities are 11 to 14 years, supported by practical games-time experiences such as young reporters and photographers programmes."

Also introduced; "An international exchange programme involving young people from other Commonwealth countries. This will be designed to foster goodwill, promote understanding of different cultures and lifestyles and help endorse the CGF's values of humanity, equality and destiny."
Besides formal education the bid document also promises a number of activities, the most high-profile of which is the 2018 Commonwealth Games opening ceremony, an event where: "Celebratory elements of the main annual festivals in Sri Lanka will be blended with distinct traditional music and dance from each of Sri Lanka's nine provinces... There will be a 'festival feel' including fireworks; grand, elegant costumes; richly decorated elephants on parade; traditional drummers and cultural dances, including fire dances, whip-dances and Sri Lanka's unique Wes dance."

Venues
Encompassing two clusters, the Games Park cluster (hosting all sports except for shooting, triathlon and cycling) and the Tissamaharama cluster, the primary focus of the Sri Lanka hosted 2018 Commonwealth Games will be the 38-hectare Games Park cluster (also boasting eight hectares of adjacent green space), which will be "designed around two main axes designated as boulevards. These boulevards provide pedestrian-only access to the venues and open plazas surrounding them. They provide a central thoroughfare and hub of activity for spectators. The boulevards will be lined with entertainment, concessions and design elements such as water features, to generate a festival atmosphere for the 125,000 spectators expected to visit the games park on an average day."
Additionally; "This atmosphere will be facilitated by a Live Site, with entertainment and big screens in the open plazas creating an exciting buzz for athletes and spectators alike." Overall, the park will comprise 8,140 beds in total for athletes and officials and post games will be retrofit into accommodations for business and IT parks and the planned sport university, with some structures converted into schools, retail space, etc. However, their first use will be during the 2018 Commonwealth Games. Aside from the Mahinda Rajapaksa International Cricket Stadium, which will be upgraded to the tune of Rs. 4.5 billion by 2014 to double seating capacity, the following will be newly built to hold events:

Athletics Stadium - Rs. 15.2 billion
A new purpose-built Athletics Stadium, with a capacity of 40,000, will be developed by 2014 and used in 2016 for the South Asian Games (2016 SAG). During the 2018 games, it will stage both Athletics and Rugby 7s.

Hockey Stadium - Rs. 2.3 billion
The hockey Stadium will provide a purpose-built venue for Hockey during the games. Developed by 2014, two new full size synthetic hockey pitches will be built in accordance with international requirements, the main pitch will have a spectator capacity of 5,000, with 2,000 temporary seats for the secondary pitch.

International Aquatics Centre - Rs. 4.5 billion
An International Aquatics Centre comprising two 50m ten-lane swimming pools and a 33m x 25m diving pool. The project is due to commence in 2012 and will be completed by 2014 in readiness for the 2016 SAG. Spectator capacities for the Swimming and Diving pools will be 5,000 and 2,500, respectively.

Exhibition Centre - Rs. 4.7 billion
The new Exhibition Centre will host three sports during the games - Badminton, Weightlifting and Netball (preliminaries). Each sport will be housed in a separate hall, with a 2,500 spectator capacity.

Multi-Sport Complex - Rs. 14 billion
A new Multi-Sport Complex will accommodate five sports during the games, each with a capacity for 2,500 spectators: Squash (six singles and four doubles courts, including a flexible show court for singles or doubles); Table-tennis (two show courts and a further eight match courts); Wrestling (area); Boxing(ring), and Lawn Bowls (five natural turf competition greens, four for competition and one main)

Main arena - Rs. 10.6 billion
The Main Arena, designed as a flexible, multi-purpose facility, will stage Gymnastics (artistic and rhythmic) as well as Netball (finals). Construction of the 5,000 capacity venue will start in 2012 and be completed by 2014.

Velodrome - Rs. 3.8 billion
Only built if Hambantota is selected to host the games, this new, and permanent, Velodrome will be built within the games park and will be the only velodrome in Sri Lanka, to be completed by early 2017.
Ranminithenna Shooting Range -

Rs. 1.4 billion
The Ranminithenna Shooting Range will be the only permanent venue located outside of the games park, approximately 35km away in Tissamaharama. It is also noteworthy that, according to the Sri Lanka Tourism Development Agency (SLTDA), there will be 13,400 visitor rooms in total in the Southern Province by 2016. Further, the bid document also shows commitments for 6,079 hotel rooms (encompassing two, three, four and five stars) within 50 km of the games. This is inclusive of 1,400 rooms within 1 km of the game park. Meanwhile, the bid documents estimates that, as of 2018, the minimum room rate would be Rs. 12,500 for a two-star room and the maximum, Rs. 57,500 for a five-star room.

Tickets
Considering the bid document's headline pledge to make the games inclusive and accessible to as many Sri Lankans and international visitors as possible, tickets can be considered as playing a big part in the overall strategy for the games. As such, it is noted that the "services of an experienced ticketing service and solution provider at an early stage, to handle all ticketing operations and ensure a robust programme is put in place."

It has also been stated that tickets prices will be "categorised into four tiers, with 55% of tickets in the lower priced tiers. Prices will also be differentiated between qualification sessions and finals sessions where medals will be awarded. 61% of total available tickets will be priced at Rs. 550 or less and 83% of total available tickets at Rs. 1,100 or less. In addition to this, there will be many free or non-ticketed events for spectators to enjoy, including Triathlon, Marathon and the Cycling road and time trial. Prices for the Opening and Closing Ceremonies will range from Rs. 2,200 to Rs. 13,275 per ticket. Prime events such as Athletics, Aquatics, Rugby 7's and Badminton will range from Rs. 225 to Rs. 2,750 and all other events will range from Rs. 90 to Rs. 1,600."

Additionally, "during the period of the games, valid tickets will provide all day access to the games park as well as the respective sport session. A Live Site within the games park and a number of games related activity centres, shops and food areas will provide entertainment throughout the day. Ticket and information booths within the games park will be strategically located to promote 'match day' ticket sales as well as providing information on upcoming events, medal sessions and results." Free public transport within the district of Hambantota will also be provided on production of an event ticket for that day.

Further, a rider in the bid document states that "apart from international cricket matches, tickets for sport events have traditionally been offered free of charge. Hosting the games will be the biggest celebration of sport that Sri Lanka has ever seen. As such, tickets for the many people wishing to be part of the games and make Sri Lankan history will be priced recognising both this unique opportunity and the price sensitivity evident in the market. The fair and affordable ticket pricing structure for the games has been developed in line with ICC Cricket World Cup ticket prices, as well as prices for other local leisure activities such as film and theatre tickets."

According to the bid document, 1.1 million tickets will be sold for the 251 sports sessions, and this will earn a projected income of around Rs. 870 million. As such, the "percentage sell-out rate (based on saleable tickets) is based upon a conservative estimate of 85% sold for ceremonies and 70% sold for sport competition sessions. However, given this will be the first event of this nature to be held in Sri Lanka and considering the detailed communication programmes to cultivate interest over four key communication stages, it is expected that sell-out rates for both ceremonies and competition sessions will far exceed these percentages."

(The entire bid document is available on the official website, www.Hambantota2018.com).

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