Beijing 2008 Volume 01

3

Volume I

Beijing, with its ancient past, dynamic present and exciting future, has the honour topresent its second bid to host the Olympic Games.

The city and its people are inspired by the Olympic spirit, confident of their ability toaccept the responsibility for this great event and determined to commit their energy,passion and resources to the task.

“New Beijing, Great Olympics” is our motto. “Green Olympics,High-techOlympics and People’s Olympics” are our themes.

Our message is that a fast-growing and vigorous Beijing is now poised to speed upits modernisation and integration into the international community, to make newfriends, and to expand the scope of its co-operation with other countries.

The new century will see the values of the Olympic Movement spread more exten-sively and innovatively, especially in China, the biggest developing country in theworld today. The Beijing Olympic Games will set an example for how the OlympicAgenda for the 21st Century can be implemented. The Games will give full play tohuman talents, ambition and achievement, enhance cultural exchanges and har-mony between peoples, strengthen awareness of the environment, and promote co-operation in the application and development of new technologies.

The Chinese people love sports. A large proportion of the 1.25 billion people ofChina participate in sports activities. Chinese athletes have a proud record of Olympiceffort and achievement and competed with honour and distinction at Sydney in 2000.

Celebrating the Games in Beijing in 2008 will afford a unique opportunity to inspireand educate a new generation of Chinese youth with Olympic values, and to pro-mote the Olympic spirit and the cause of sport in China and the developing world.

PREFACE

Volume I-PREFACE

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Volume I

Beijing is a city on the move. Its dynamic growth reflects that of China as a whole.Its economy is characterised by impressive growth rates, the rapid development andapplication of leading edge technologies, such as IT, a strong emphasis on educa-tion and training the younger generation, and support for open markets signaled byforthcoming membership of the WTO.

Beijing and China recognise that a far-reaching, creative and comprehensive re-sponse to challenges posed by the environment is an essential yardstick of progressfor a modern society at the beginning of the 21st century.

The Beijing 2008 Olympic Games will symbolise and spur on the city’s commitmentto technological advancement and environmental protection for the future benefit ofthe Chinese people.

It is over 3,000 years since Beijing was first founded, and over 800 years since itbecame the capital of China. The age-old history of Beijing has endowed the citywith very rich cultural heritage. Contemporary Beijing is culturally creative andinnovative, and embracing of other cultures and traditions.

The Olympic Games in Beijing will be a bridge of harmony between cultures andembody the Olympism’s unique integration of sport and culture.

Beijing’s second bid again has the full support of the Chinese Government and theBeijing Municipal Government and is enthusiastically backed by Chinese peopleeverywhere.

The commitment, capability and confidence of the people of China and Beijing willdeliver to the world’s athletes and people a truly memorable Olympic Games in2008.

Volume I-PREFACE

7

Volume I

LETTER OF SUPPORT BY PRESIDENT JIANG ZEMIN

Beijing, 21 November 2000

Respected President Juan Antonio Samaranch,

Respected Members of the IOC,

With much enthusiasm, I solemnly convey to you my full support for Beijing’s bid to host

the Games of the XXIX Olympiad in 2008.

It will be of extremely great significance to promoting and carrying forward the Olympic

spirit in China and across the world and to facilitating the cultural exchanges and conver-

gence between East and West if the Games of the XXIX Olympiad are held in China, a

rapidly developing country with a long-standing civilisation and 22 percent of the world’s

population. The Chinese people are ready to contribute to the cause of peace, friendship

and progress of mankind and to the development of the Olympic Movement by hosting

the XXIX Olympic Games.

I sincerely hope that Beijing will be selected by the IOC as the Host City of the XXIX

Olympic Games. The Chinese people have a peace-loving and hospitable tradition. You

and all members of the Olympic Family under your leadership will be warmly welcomed

by our whole nation for the occasion. I am convinced that with the support of the

Chinese Government and all the Chinese people, Beijing will work very hard and will

surely make the XXIX Olympic Games an extraordinary success.

Jiang ZeminPresident of the People’s Republic of China

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Volume I

LETTER FROM LIU QI, MAYOR OF BEIJING

Beijing, ChinaDecember 12 , 2000

Mr. Juan Antonio SamaranchPresident,International Olympic Committee

Dear Mr. President,Dear Members of the IOC,

As Mayor of Beijing, I would like to assure you of the aspiration of the Beijing MunicipalGovernment and the city’s 12.5 million people to host the 2008 Olympic Games inBeijing.

As you all know, Beijing, the political, cultural and international activities center of China,is a city of over 3,000 years of history, and of over 800 years as China’s capital. At thesame time, it is also a booming modern metropolis. With “New Beijing, Great Olympics”as our promise to you and the Olympic Movement, I hereby solemnly pledge that, ifBeijing has the honour of being awarded the Host City for the 2008 Olympic Games, wewill provide the Olympic Family with world-class transport, high-tech services and aclean and beautiful environment. Beijing will have brand new and exciting venues for awonderful Olympic celebration. The athletes and people all over the world will be able tosee the brilliance of the Chinese civilization and harmonious convergence of the culturesof East and West.

The Beijing Municipal Government, supported by the Chinese Government and all theChinese people, is confident that Beijing is able to host the 2008 Olympic Gamessuccessfully, so as to have the noble ideals of Pierre de Coubertin even more widespreadand the Olympic Movement entering a new historical stage, which will contribute to theworld peace and human friendship.

Yours sincerely,

Liu QiMayor of Beijing

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Volume I

LETTER FROM YUAN WEIMIN, PRESIDENT OF COC

Beijing, ChinaDecember 12, 2000

Mr. Juan Antonio SamaranchPresident,International Olympic Committee

Dear Mr. President,Dear Members of the IOC,

As President of the Chinese Olympic Committee, I would like to express my earnest hopethat the Games of the XXIX Olympiad in 2008 will be held in Beijing. Also, as Ministerin charge of the State Sport General Administration, I would like to convey to you thehope of all the athletes and sports personnel in China that you, all the IOC members andthe world’s finest athletes will come to Beijing in 2008 to share with us the celebration ofthe Games of XXIX Olympiad.

Hosting the Olympic Games has been the common aspiration of the Chinese OlympicCommittee and several generations of sports personnel in China. We will take great pridein hosting the Games of the XXIX Olympiad in Beijing. After discussions at its plenarysession, the Chinese Olympic Committee decided to recommend Beijing as the candida-ture and host city for the 2008 Olympic Games. We sincerely believe that both the leadersand the residents of the city cherish noble feelings for the Olympic ideal and have greatenthusiasm and a strong sense of duty towards the hosting of the Olympic Games. Withthe full support of the Chinese Government and all the Chinese people, they will surelybe able to create the best environment and conditions for the Games and turn it into awonder of Olympic history.

Yours sincerely,

Yuan WeiminPresidentChinese Olympic CommitteeMinisterState Sport General Administration

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Volume I

LETTER OF SUPPORT BY PREMIER ZHU RONGJI

Beijing, 30 November 2000

Respected President Juan Antonio Samaranch,

Respected Members of the IOC,

The Chinese Government gives all-out support to Beijing’s bid to host the Games of the

XXIX Olympiad in 2008.

I am confident that with the support of the Chinese Government and all the Chinese

people, Beijing will be able to organize the 2008 Olympic Games successfully.

During the Olympic Games, the Chinese Government and all its relevant departments

will respect the rules and by-laws of the Olympic Charter and the regulations of the

International Federations related to the Olympic Games. I am personally ready to ensure

the implementation of the rules and regulations.

China and the city of Beijing enthusiastically look forward to the hosting of the 2008

Olympic Games in Beijing.

Zhu RongjiPremier of the State Council ofThe People’s Republic of China

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China is situated in East Asia, bordered on its east by the Pacific Ocean. The total area of the country is 9.6

million square kilometers, and the population is 1.25 billion. China is a country with an ancient civilization

and a recorded history of over 4,000 years. The largest developing country in the world, China enjoys socialstability, and a steadily developing economy. 56 ethnic nationalities live in China, all enjoying equal rights

guaranteed by the Constitution and the legal system.

Beijing is the capital of the People’s Republic of China. It has a total area of 16,800 square kilometers, within

which the urban area accounts for 1,041 square kilometers. With a population of 12.5 million, Beijing is the

political, cultural and foreign-relations centre of the country. In the past 10 years, Beijing’s economy has enjoyedrapid development. In a 1999 comprehensive national evaluation of social development, Beijing’s index of social

development ranked first in the country.

The Chinese Government and people fully support Beijing’s bid to host the 2008 Olympic Games.

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N a t i o n a l , R e g i o n a l , a n d C a n d i d a t e C i t y C h a r a c t e r i s t i c s

1.1 Political Institution

China’s political institutional system takes the form of the People’s Congress system, the system of multi-

party cooperation and political consultation under the leadership of the Communist Party of China and theethnic regional autonomy system.

The highest state power in China resides with the National People’s Congress (NPC), which is popularlyelected. The NPC carries out the following functions: amending the Constitution; making and amending

basic laws of the state; electing, appointing, and dismissing state leaders; establishing executive, judicial, and

law enforcement bodies of the state; and deciding on major national issues including economic and socialdevelopment plans, the state budget, and the formation of special administrative regions.

The highest executive power in China resides with the State Council, which is the day-to-day national Gov-ernment led by the Premier. The State Council’s main functions are as follows: making administrative

regulations; issuing decisions and orders in accordance with the Constitution and laws; coordinating the

work of administrative departments at both national and local levels; formulating and implementing planson national economic and social development and the state budget; running the economy, urban and rural

development, education, science and technology, culture, sports, civil affairs, policing and the day-to-day

business of the Government.

Administratively, China is structured as follows:

• The country is composed of provinces, autonomous regions, municipalities and Special Administrative

Regions under the jurisdiction of the Central Government.

• Provinces and autonomous regions are divided into autonomous prefectures, counties, autonomous counties,

and cities.

• Counties and autonomous counties are divided into townships, nationality townships, and towns.

Beijing Municipality has three levels of administration: city, districts and counties, and townships. Beijingcurrently has 18 districts and counties.

The Beijing Municipal People’s Congress is a state power at the local level, which is popularly elected. Itexercises the following powers: deciding on the plan of economic construction and social development for

Beijing; electing, appointing and removing from office leaders of municipal administrative, judicial, and law

enforcement bodies. The Congress and its Standing Committee can formulate and promulgate local lawswithin the framework of the Constitution, the State laws and administrative regulations.

The Beijing Municipal Government led by the Mayor, is Beijing’s local government authority. It exercisesthe powers of government, provides a full range of services to the people of Beijing, and implements resolu-

tions of the Beijing Municipal People’s Congress.

N a t i o n a l , R e g i o n a l a n d C a n d i d a t e C i t y C h a r a c t e r i s t i c s

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1.2 Government Support

The Chinese Government whole-heartedly supports Beijing in its bid to host the 2008 Olympic Games.China’s President, Mr. Jiang Zemin, expressed his full support to Beijing’s bid in a letter to the IOC Presi-dent Mr. Juan Antonio Samaranch on 21 November, 2000. China’s Premier, Mr. Zhu Rongji, has signed aguarantee of the Central Government support for the Olympic Games.

Covenant of the Premier of the PRC State Council has been obtained (See Theme 18).

The Beijing Municipal Government, and the administrations of the districts and counties have undertaken toprovide the financial resources, land, personnel, and venues and facilities necessary to host the OlympicGames.

Covenant of the Mayor of Beijing has been obtained (See Theme 18).

1.3 Elections

The Constitution of the People’s Republic of China provides for five-year terms for deputies to the NationalPeople’s Congress and local people’s congresses.

Between now and 2008, China will conduct two elections to elect new deputies to the National People’sCongress and local people’s congresses. They will be held from December 2002 to March 2003 and fromDecember 2007 to March 2008, respectively. Consequently, there will be some personnel changes in theCentral Government and the Beijing Municipal Government. However, such changes will not affect anyplan or commitment that Beijing makes for hosting the 2008 Olympic Games.

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1990 5017.9 6858.0 859.4 1147.5 1419.7 1234.5 327.9 393.81991 5288.6 8087.1 1015.1 1409.7 2087.0 1288.1 447.3 454.91992 5800.0 10284.5 1415.0 1681.1 2735.0 1601.0 559.7 547.71993 6882.1 14143.8 2284.7 2123.2 3090.7 2057.0 899.2 709.91994 9457.2 19359.6 3012.6 2685.9 4050.4 2767.2 1200.5 977.61995 11993.0 24718.3 3819.6 3054.7 4932.3 3482.8 1546.4 1124.51996 13844.2 29082.6 4530.3 3494.0 5560.3 4017.4 1717.7 1354.91997 14211.2 32412.1 4810.6 3797.2 6159.9 4534.6 2177.9 1573.21998 14452.4 33387.9 5231.4 4121.3 6579.1 4672.6 2649.3 1823.91999 14457.2 34975.2 5442.7 4459.5 6842.3 4951.4 2781.6 1883.9

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36.5% 42.41% 21.09%

66.12% 19.32% 14.56%

35.25% 34.48% 30.27%

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1.5 Major Economic Resources

Main Economic Resources of China in the Past Decade

All political parties in China have expressed their support for Beijing’s bid and plans.

1.4 Political Parties

The political parties in China are: the Communist Party of China, the Revolutionary Committee of theChinese Kuomintang, the China Democratic League, China Democratic National Construction Association,China Democratic Association for Promoting Democracy, Chinese Peasants’ and Workers’ Democratic Party,the China Zhi Gong Dang, the Jiu San Society, and Taiwan Democratic Self-Government League.

The current system of political parties in China is one of multi-party cooperation, and political consultationunder the leadership of the Communist Party of China. The Communist Party of China is the ruling party,while other parties participate in state power, the administration of state affairs, consultation on the selec-tion of state leaders and the formulation and implementation of policies, laws, and regulations of the state,and play a supervisory role in the political life of the state.

The Chinese People’s Political Consultative Conference is an organization to implement the political consul-tation system and to promote the Patriotic United Front among the Chinese people. It is also an institution ofimportance for multi-party cooperation and political consultation under the leadership of the CommunistParty of China.

The Percentages of Party Representation in Legislative Bodies Are as Follows:

Communist Party of China Other Parties

67.7% 23.9% 8.4%

Political Body Non-Party

Standing Committee of the NationalPeople’s CongressStanding Committee of the ChinesePeople’s Political ConsultativeConference

Standing Committee of the People’sCongress of Beijing

Standing Committee of the ChinesePeople’s Political ConsultativeConference of Beijing

36.5%

66.12%

35.25%

42.41%

19.32%

34.48%

21.09%

14.56%

30.27%

Unit: RMB yuan (100 million)

1990 5017.9 6858.0 859.4 1147.5 1419.7 1234.5 327.9 393.81991 5288.6 8087.1 1015.1 1409.7 2087.0 1288.1 447.3 454.91992 5800.0 10284.5 1415.0 1681.1 2735.0 1601.0 559.7 547.71993 6882.1 14143.8 2284.7 2123.2 3090.7 2057.0 899.2 709.91994 9457.2 19359.6 3012.6 2685.9 4050.4 2767.2 1200.5 977.61995 11993.0 24718.3 3819.6 3054.7 4932.3 3482.8 1546.4 1124.51996 13844.2 29082.6 4530.3 3494.0 5560.3 4017.4 1717.7 1354.91997 14211.2 32412.1 4810.6 3797.2 6159.9 4534.6 2177.9 1573.21998 14452.4 33387.9 5231.4 4121.3 6579.1 4672.6 2649.3 1823.91999 14457.2 34975.2 5442.7 4459.5 6842.3 4951.4 2781.6 1883.9

Year Agriculture Construc-tion

Industry Transportation, Post &Telecommunications

Commerce& Catering

Banking &Insurance

Education& Culture

SocialServices

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Proportion of Beijing’s GDP Attributable to the Main Economic Resources of Beijing Municipality in the PastDecade

Beijing’s Fiscal Revenues and Rate of Growth in the Past Decade


Proportion of Main Economic Resources of China to its GDP in the Past Decade

1990 100.0 27.0 37.0 4.6 6.2 7.7 6.7 1.8 2.11991 100.0 24.5 37.4 4.7 6.5 9.7 6.0 2.1 2.11992 100.0 21.8 38.6 5.3 6.3 10.3 6.0 2.3 2.11993 100.0 19.9 40.8 6.6 6.1 8.9 5.9 2.6 2.01994 100.0 20.2 41.4 6.4 5.7 8.7 5.9 2.6 2.11995 100.0 20.5 42.3 6.5 5.2 8.4 6.0 2.6 1.91996 100.0 20.4 42.8 6.7 5.1 8.2 5.9 2.5 2.01997 100.0 19.1 43.5 6.5 5.1 8.3 6.1 2.9 2.11998 100.0 18.6 42.6 6.7 5.3 8.4 6.0 3.4 2.31999 100.0 17.6 42.7 6.6 5.4 8.4 6.0 3.4 2.3

Year GDP Industry Construction Transportation, Post &Telecommunications

Commerce& Catering

Banking &Insurance

Education& Culture

SocialServices

Agriculture

Main Economic Resources of Beijing Municipality in the Past Decade


1990 43.9 219.3 43.1 24.0 43.9 56.8 9.96 10.671991 45.5 255.6 35.9 29.6 65.7 54.7 25.48 23.561992 48.7 293.0 52.9 35.5 85.4 65.0 30.30 27.501993 53.6 334.0 80.8 37.6 113.9 83.0 38.56 33.911994 74.8 405.1 94.7 61.5 146.6 109.0 43.07 39.931995 81.4 503.7 111.5 83.6 174.7 145.3 53.54 46.251996 83.5 541.4 141.7 113.8 187.6 181.5 63.15 61.301997 84.9 588.4 150.2 135.8 202.5 246.9 77.49 66.711998 86.6 610.7 176.2 154.5 207.3 277.6 110.67 80.831999 87.5 649.3 190.9 167.5 210.4 316.4 119.95 101.17

Year Agriculture Industry Construction Transportation,Post &Telecommunications

Commerce& Catering

Banking &Insurance

Education& Culture

Science &TechnicalServices

Year GDP Industry Construction Transportation,Post &Telecommunications

Commerce& Catering

Banking &Insurance

Education& Culture

Science &TechnicalServices

1990 100.0 8.8 43.8 8.6 4.8 8.8 11.3 2.0 2.11991 100.0 7.6 42.7 6.0 4.9 11.0 9.1 4.3 3.91992 100.0 6.9 41.3 7.5 5.0 12.1 9.2 4.3 3.91993 100.0 6.2 38.7 9.4 4.4 13.2 9.6 4.5 3.91994 100.0 6.9 37.4 8.7 5.7 13.5 10.1 4.0 3.71995 100.0 5.8 36.1 8.0 6.0 12.5 10.4 3.8 3.31996 100.0 5.2 33.5 8.8 7.0 11.6 11.2 3.9 3.81997 100.0 4.7 32.5 8.3 7.5 11.2 13.6 4.3 3.71998 100.0 4.3 30.4 8.8 7.7 10.3 13.8 5.5 4.01999 100.0 4.0 29.9 8.8 7.7 9.7 14.6 5.5 4.7

Agriculture

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999Year

Fiscal Revenues

Growth Rate

74.01 77.02 80.25 84.10 99.86 115.26 150.90 209.91 265.61 320.45

4.17 4.07 4.19 4.80 18.73 15.43 30.92 39.11 26.54 20.65

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Volume I-Them

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Average Annual Exchange Rates between RMB Yuan and US Dollars in the Past Decade

1.7 Price Level and Exchange Rate

Commodity Retail Price Index in China and Beijing in the Past Decade

1.8 Bidding Committee

B e i j i n g 2 0 0 8 O l y m p i c G a m e s B i dCommittee(BOBICO) comprises leadingf igure s f rom the Be i j ing Munic ipa lGovernment, relevant departments in theCentral Government including the StateSports General Administration, the ChineseOlympic Committee, the All China SportsFederation, representatives of athletes andc o a c h e s , e x p e r t s o f t h e O l y m p i cMovement, and officials and specialistsfrom cultural, educational, technological,scientific, architectural, environmental,financial, commercial and social fields.

1.6 Annual Per Capita Income

Annual Per Capita GDP Income of China and Beijing Municipality in the Past Decade

For many years now, prices in China and Beijing have been relatively stable. According to the People’s Bankof China forecast, based on a macro-quantitative economic model from the present to the year 2008, theannual average growth rate of China’s commodity retail prices will be approximately 1.7%.

The People’s Bank of China, China’s central bank, has forecast that China’s economic growth rate willremain at a relatively high level; that the balance of payments will remain healthy; and that the exchange rateof RMB yuan will remain stable from the present to 2008 due to the controlled, floating exchange ratesystem which is based on the market law of supply-and-demand implemented in China.

Unit: US$

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

China

Beijing

Year

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

China

Beijing

Source: China Statistics Yearbook and Beijing Statistics Yearbook

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

RMB

Year

532.22 551.4590 576.1950 861.8652 835.09 831.42 828.98 827.91 827.8261478.32

Unit: RMB yuan/US $100 Source: China Financial Yearbook

341.6 353.0 414.7 510.0 455.2 581.3 670.7 730.3 761.8 789.3

1021.1 1086.7 1235.0 1430.6 1190.8 1565.6 1810.3 2018.7 2231.6 2399.8

102.1 102.9 105.4 113.2 121.7 114.8 106.1 100.8 97.4 97.0

104.1 108.5 108.3 116.9 117.9 112.6 107.3 103.8 98.3 98.8

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1.9 Public Support

A Gallup Survey conducted in Beijing in November 2000 on the extent of popular support for the city’s bid

for the 2008 Olympic Games indicates that 94.9% of the people in Beijing support Beijing’s bid.

Soon after its founding, BOBICO received more than 2,000 submissions for logo designs and 30,000 suggested

mottos for the Beijing Olympic bid from all over China. Urban residents, students, performers, athletes, andprominent social identities from Beijing and throughout China have expressed their support for Beijing’s bid

through a variety of means, including the collection of signatures, and the production of paintings, calligraphy,

and other works of art and artistic and sporting performances. In addition, a large number of Chinese andChina-based foreign businesses have offered to provide financial support for Beijing’s bid.

1.10 Guarantees from Localities Concerned

Should Beijing win the bid, Olympic Sailing will be held in Qingdao, and Olympic Football preliminaries

will be held in Shanghai, Tianjin, Shenyang, and Qinhuangdao. The Governments and residents of thesecities consider it a great honour to host Olympic events and have expressed their readiness to cooperate with

BOCOG and to work for the success of the Olympic Games in accordance with the requirements of the IOC

and the IFs. Guarantees have been obtained from Qingdao, Shanghai, Tianjin, Shenyang and Qinhuangdao.(See Theme 18)

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The Chinese Government, the Beijing Municipal Government, and local governmental departments

involved in hosting the Olympic Games, will fully respect and comply with the provisions of theOlympic Charter and the Host City Contract, and will conscientiously fulfil all obligations to, and

agreements with, the IOC.

China has a sound and effective legal system, fully capable of protecting the rights and interests of

the Olympic Movement. China’s legislative bodies and government will, as required, formulate and

issue regulations and ordinances to protect the IOC’s rights and interests.

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2.1 Governmenta l Covenants

The Executive Committee is the executive body of BOBICO, and under it are the followingdepartments:

• General Office• Research & Analysis• External Relations• Press & Publicity• Sports & Venues• Construction & Project Planning• Finance & Marketing• Technology• Environment & Ecosystem

Funding for BOBICO is primarily provided by sponsorship and donations from various enter-prises and social associations, as well as through special Beijing Municipal Government fundsand financial support from the Central Government.

The Beijing Municipal Government confirms that BOBICO is empowered to sign contractsand other documents related to its bid for hosting the 2008 Olympic Games on behalf ofBeijing. Executive Vice President Liu Jingmin, Co-Secretary General Tu Mingde and Co-Secretary General Wang Wei have the authority to sign relevant contracts and other docu-ments related to the bid for hosting the 2008 Olympic Games on behalf of Beijing. A State-ment of Authorization signed by the Mayor of Beijing has been obtained. (See Theme 18)

2.1.1 A covenant signed by the Premier of the State Council of the Government of the People’s Republic ofChina has been obtained. (See Theme 18)

2.1.2 Covenants of the Mayors of Beijing, Qingdao, Shanghai, Tianjin, Shenyang, and Qinhuangdao havebeen obtained. (See Theme 18)

2.2 Beijing Olympic Games Bid Committee and Olympic Organizing Committee2.2.1 BOBICO has been approved by the State Council of the People’s Republic of China, and is an independent legal entity.

President Mr. Liu Qi, Mayor of BeijingExecutive President Mr. Yuan Weimin, Minister in Charge of the State Sport General Administration

of China and President of the Chinese Olympic Committee

Co-Secretary General Mr. Wang Wei, Deputy Secretary General of the People’s Government ofBeijing Municipality

Executive Vice President Mr. Li Zhijian, President of All-China Sports Federation

Executive Vice President Mr. Liu Jingmin, Vice Mayor of Beijing

Director of Sports Mr. Lou Dapeng, President of the Chinese Athletic Association

Co-Secretary General Mr. Tu Mingde, Secretary General of the Chinese Olympic Committee

The Executive Committee of BOBICO Comprises the Following Members:

L e g a l A s p e c t s

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2.3 Olympic Mark Protection

The Chinese Government abides by the Olympic Charter and the IOC rules in relation to Olympic marks.China has relevant existing laws and regulations such as the Law of the People’s Republic of China on Sports,the Law Against Unfair Competition, the Law of the People’s Republic of China on Patent, the Law of thePeople’s Republic of China on Trademark, the Law of the People’s Republic of China on Copyright, and theRegulation on the Administration of Special Marks. Clause No. 35 of the Law of the People’s Republic ofChina on Sports clearly states:

China has entered into international intellectual property rights treaties, and will soon enter the WTO. AllOlympic marks, emblems, logos, and related Olympic symbols and designs will be fully protected, and themarketing of Olympic products free from infringement violations.

In accordance with the Regulation on the Administration of Special Marks, the mark of BOBICO has been

Marks involving the name, emblem, flag, or logo of any major sports competition held on Chinese territory are subject to the protection of relevant Chinese laws and regulations.

Should Beijing be elected Host City for the 2008 Olympic Games, BOBICO and the ChineseOlympic Committee will immediately sign the Host City Contract with the InternationalOlympic Committee (hereinafter referred to as IOC) and the Organizing Committee of theBeijing 2008 Olympic Games (hereinafter referred to as BOCOG) will be established withinfive months of the signing of the Host City Contract, and charged with all matters related tothe organization of the 2008 Olympic Games in Beijing.

BOCOG will be an independent, legal entity and, as such, will have the right to exercise legalauthority and the right of jurisdiction in civil affairs. BOCOG will also be legally responsiblefor civil obligations and liabilities in accordance with the law.

BOCOG will comprise the IOC members in China, the President and Secretary General ofthe Chinese Olympic Committee, athletes, leading officials of the Government of BeijingMunicipality, the State Sport General Administration, All-China Sports Federation, relevantdepartments of the Central Government, China Disabled Persons’ Federation, Chinese SportsAssociation for the Disabled, experts in the Olympic Movement, planning, architecture, en-vironmental protection, technology, finance and law, as well as various experts, businessleaders, and public figures.

To ensure the continuity, the core members of BOBICO will also serve in BOCOG.

From the date of its inception to the date of its dissolution, BOCOG will ensure that all of itsactivities are conducted in accordance with the Olympic Charter and the guidelines of theIOC Executive Board. Further, the BOCOG will, together with the Beijing Municipal Gov-ernment and the Chinese Olympic Committee, shoulder every responsibility and obligationas outlined in the Host City Contract and its appendices. At the same time, BOCOG will fullyhonour all guarantees, statements, and commitments made by BOBICO in the bidding process.

2.2.2 Organizing Committee of the Olympic Games

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approved by and registered with trademark administrative authorities of the state and enjoys full legalprotection. In addition, the Chinese Government states that it will take all necessary legal measures tostrengthen the protection of Olympic marks, as represented by the formulation and promulgation of rel-evant legal regulations on the 2008 Olympic Games and Olympic Marks. A Covenant signed by the Premierof the State Council of the People’s Republic of China and the Minister of State Administration for Industryand Commerce of the People’s Republic of China has been obtained. (See Theme 18)

2.4 Ambush Marketing

tration under the Beijing Municipal Government which stipulates that during the OlympicGames, BOCOG will assume advertising control over all competition venues and the air

space above to ensure no advertising appear, as required by the IOC. The Organizing Com-

mittee will obtain written agreements to ensure that advertising will be strictly controlled atcompetition venues and environs, in public transportation, airports, billboards, and city streets.

Such action will be taken in order to protect the precedence and exclusivity of Olympic

Sponsors in these advertising areas. BOCOG will guarantee that there will be no unautho-rized advertising in competition venues, so as to prevent any violation of the rights of spon-

sors by a third party.

reached an agreement with BOBICO to develop a unified joint marketing program(See Theme

6). No other marketing program that could have an impact on the Olympic or Paralympic

marketing programs will be permitted. All relevant agreements or contracts between variousChinese sports associations and the sponsors will be incorporated into the unified joint

marketing program as required by the IOC. This will ensure that the requirements stipulated

in Chapter VII of the Host City Contract are met and that no other marketing agreements canbe made or enacted that directly or indirectly relate to the Olympic Games, Paralympic Games,

Olympic delegations, or the Olympic year.

2.5 Guarantee from the Bidding City

BOBICO has not entered into any contract that will be in effect after the date of election of the Host City forthe 2008 Olympic Games. All sponsorship contracts signed by the Chinese Olympic Committee contain the

provision that, in accordance with the requirements of Chapter I of the Host City Contract----Basic Principles,

these contracts will not jeopardize, prevent, or make impossible the fulfilment of any provision of the HostCity Contract, should Beijing be chosen as the Host City of the 2008 Olympic Games.

2 .6 Language s

The English text of the Candidature File will prevail in the event of any difference of interpretation between

the English and French versions.

2.4.1 BOBICO has reached a preliminary agreement with the department in charge of advertising adminis-

2.4.2 On behalf of all domestic sports associations and organizations, the Chinese Olympic Committee has

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Customs and immigration procedures for the Beijing 2008 Olympic Games will fully comply with

the Olympic Charter. Cooperation and courtesy will be accorded to all Games participants when

they enter China. All products and equipment required for the Games will be exempted from cus-toms duties.

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3.1 Immigration Procedure for the Olympic Games

The Chinese Government pledges to observe Rule 65 of the Olympic Charter. All holders of the Olympic

identity and accreditation card will, upon presentation of their passports or other official travel documents,be entitled to enter China for multiple times for the duration of the Olympic Games and for a period not

exceeding one month before and one month after the Games. Other personnel participating in the organization

of the Olympic Games who are in possession of a letter of invitation issued by the IOC or BOCOG shall begranted appropriate entry visas and will be permitted to work and stay in China for at least one year before

the Games.

A guarantee to this effect jointly signed by the Minister of Foreign Affairs and the Minister of Public Security

of the People’s Republic of China has been obtained. (See Theme 18)

Under the current regulations, visas are required to enter China. Visas are readily available, on presentation

of a passport (and, if necessary, other documents), from Chinese embassies or consulates around the world,

and from some other agencies designated by the Chinese Ministry of Foreign Affairs.

C u s t o m s a n d I m m i g r a t i o n FORMALITIES

3.2 Health and Vaccination

In accordance with the Frontier Health and Quarantine Law of the People’s Republic of China, all persons

entering China are required to submit a health declaration form to the officer at the health and quarantinecontrol post. With the exception of persons from areas affected by diseases such as yellow fever, foreign

visitors to China do not require vaccination certificates. Persons with highly infectious diseases are not

permitted to enter China.

The State Administration for Entry & Exit Inspection and Quarantine of the People’s Republic of China will

work in close cooperation with BOCOG to facilitate the smooth passage through health and quarantinecontrol of the athletes and other members of the Olympic Family.

Prior to the Beijing 2008 Olympic Games, BOCOG will advise any health and vaccination recommendationsmade by China’s health and quarantine authorities in order to assist persons entering China for the Olympic

Games.

3.3 Importation, Use and Exportation of Goods Required for the Olympic Games

The Chief Administrator of Customs, the Minister of Finance, the Minister of Public Security, and the

Minister of the State Administration for Entry & Exit Inspection and Quarantine of the People’s Republic ofChina have jointly signed a guarantee confirming that the importation, use and exportation of goods re-

quired by the IOC, the IFs, the NOCs and their delegations, the accredited media, the sponsors and suppliers

will be exempted from all customs duties. This is to allow them to carry out their Games obligations, pro-vided such goods are used or consumed in China or transported out of China within a reasonable period of

time after the Games. (See Theme 18)

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3.4 Special Products and Equipment

The special products and equipment required by members of the Olympic Family to carry out their duties at

the Olympic Games, including firearms and ammunition, photographic and audio-visual equipment, medicalequipment and products, computer equipment, foodstuffs, etc., will be allowed temporary admission and to

go through inspection and quarantine formalities upon presentation of a certificate or guarantee issued by

BOCOG.

A guarantee to this effect, jointly signed by the Chief Administrator of Customs, the Minister of Finance, the

Minister of Public Security, and the Minister of the State Administration of Entry & Exit Inspection andQuarantine of the People’s Republic of China, has been obtained. (See Theme 18)

3.5 Media Material Covering the Olympic Games

There will be no restriction concerning the use of media material produced in China and intended principally for

broadcast outside.

3.6 Importation of Foreign Media Material

In accordance with the Customs Law of the People’s Republic of China and related statutes currently inforce, publications and audio-visual products that are considered detrimental to national security or that

disseminate pornography or violence can be prohibited from entry into the country.

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¶

“Green Olympics” is one of the three key themes for the Beijing 2008 Olympic Games. This theme

owes its prominence to the Chinese philosophy dating back 2200 years, which recognises a connec-tion between sustainable use of the environment and human existence. The “Green Olympics” is

integral to the planning and staging of this great event.

With the Olympic ideal as the major catalyst, 20 major projects costing US$ 12.2 billion aimed at

improving the environment shall be completed by the year 2007, achieving the objectives set forth

in the city’s Master Plan for Development three years ahead of Beijing’s schedule. Beijing promisesto provide a clean environment for the athletes by 2008.

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A . E n v i r o n m e n t a l P r o t e c t i o n4.1 The City’s Geographical Features and Cultural Heritage

Beijing is situated on the east side of the Taihang Mountains, and 180 km from the Bohai Sea. The protectedareas and the environmentally sensitive areas are shown in the figure 4-1 and table 4-1. The activities of theGames shall not cause any harm to these areas.

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Table 4-1 The Protected and Environmentally Sensitive Areas

3 13 2 5 42 222 724Numbers

National Municipal District/ County

All building constructions in Beijing are required to be designed to withstand earthquakes with intensity VIIIon the Mercalli Scale; yet the City has experienced no major earthquakes greater than M=5 on the RichterScale over the past 235 years. Nor have there been other major natural disasters, such as floods in the last 50years.

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4.3 Environmental Management for the Games

An environmental management system (EMS) for the Olympic Games has been created by BOBICO, incompliance with ISO 14001 Standards. The Environment and Ecosystem Department of BOBICO is respon-sible for the activities of environmental and ecological protection related with the Games. A consultationnetwork comprising specialists, non-governmental organizations (NGOs) and activists is also at work, offer-ing recommendations to BOBICO at monthly-held hearings. In addition, a well-known company has beencommissioned to add its input to the preparation.

Objectives, Goals and Priorities

The objectives are: to provide a nice and clean environment for the XXIX Olympiad, to ensure the successof the Games without incurring negative impacts on the ecosystem, and to make the Games a truly GreenOlympics. Our efforts on environmental improvement for the Games will facilitate the implementation ofthe City’s Master Plan and be conducive to the goals for long-term sustainable development.

The priorities are: to improve the air quality by use of cleaner energy and prevention of pollution caused byvehicles, to speed-up the construction of the projects for waste water treatment and reuse, to prevent thepollution caused by solid wastes, to preserve cultural heritage, to plant trees and improve the ecosystem as awhole.

The Action Plan

The Green Olympics Program(GOP), formulated by BOBICO in collaboration with the municipal EPB and20 non-government organizations (NGOs), encompasses activities with a total investment of US$ 5.6 billionfor the period of 1998-2002 and US$6.6 billion for the period of 2003-2007. Its main initiatives includethe following:

•The City shall complete all the 20 key projects listed in its Master Plan for environmental improvement, prior to 2008.

4.2 The City’s Environment and Natural Resources Management

China has a full-fledged system for environmental and natural resources management, supported by anadequate regulatory framework. China has signed 16 international covenants on environmental protection.Administrative departments for environmental protection and resources management are established at thenational, municipal and district/county levels for law enforcement and providing full support to BOBICO.BOBICO shall carry out its responsibilities in accordance with the national and municipal regulations andwork in close collaboration with the related administrative departments (See the table 4-2). The BeijingMunicipal Government is responsible for all matters related to environmental and natural resource manage-ment in Beijing, encompassing all Beijing based Olympic venues and activities.

The City Government Function

Environmental Protection Dept EIA approval, pollutants dischargeUrban Development Commission energy supply, water resources,

sewage & solid waste disposalHorticulture & Forestry Depts green cover ecosystemLand & Housing Authorities land useArt Treasure Administration cultural heritage

Table 4-2 Municipal Departments and Their Regulatory Functions for the Games

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Volume I-Them

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•Strategic Environmental Assessment (SEA) and Environmental Impact Assessment (EIA) will be carried out for the whole course of the Games including its preparatory phases. A detailed Environmental Management Plan (EMP) will be formulated based on the findings of these assessments.

•10 public events are to be held in order to involve the local residents in the process of promoting environmental protection.

•An Education Centre for Sustainable Development shall be set up in the Olympic Green to raise public awareness on environmental protection.

•Procurement policies will be adopted to encourage designers, builders, suppliers, sponsors and licensees to address environmental priorities.

Collaboration with Environmental Authorities and NGOs

The Chinese Government (the Government) has provided fullsupport to Beijing ’s bid for the XXIX Olympiad and has sentexperienced experts taking part in the environmental managementfor the Games. The Government has also accepted BOBICO’s rec-ommendations for environmental improvement. BOBICO will makeevery effort for the environmental protection related with theGames, while fully support the Beijing Municipal Government ful-filling its environmental protection programs.

More than 50 NGOs in the City have responded with enthusiasmto GOP Environmental activists act as environment consultants forBOBICO. Proposals put forward by NGOs on the development ofgreen communities, green campuses and green business districts,on separate collection of solid wastes and on protection of wildlifehave been accepted by BOBICO.

These environmental protection programs will be successfully car-ried out, thanks to the guarantee provided by the laws andregulations, the careful organizations of the governmental authorities, and the active participation by thepublic. Over the last two years, Beijing Municipal Government has invested US$3.6 billion to improve theenvironment with a two-fold increase in waste water treatment, a three-fold increase in natural gas supply,and a 30% lift in pollution-free disposal of solid wastes. Ambient air quality in summer and autumn isapparently improved, meeting the national standards (See the figure 4-3).

Minimizing the Environmental Impacts Caused by Transportation and Construction Projects

Beijing Municipal Government has identified air quality as a major health and environmental issue. Sulphurdioxide, carbon monoxide, nitrogen dioxide and suspended solid particles (particulates) are monitored daily.While air quality during the period of the Games in 2008 will be of a high quality, and meet Chinese andWHO standards (See Theme 11), Beijing Municipal Government is nonetheless committed to achieve a highstandard for the whole year.

Strict standard for vehicle exhausts was enforced in 1999. A more restrictive standard will be in place by2007 and the exhausts from new vehicles by that time will be reduced by 60%. Currently, 60% of the busesand 40% of the taxis in the City are powered by natural gas. These figures will be increased to 90% and 70%,respectively by 2008. The present daily capacity of the City’s subway is 1.3 million people and it will beincreased to 2.66 million by 2008. Public ground transport is also expected to rise from 9.86 millionpeople/day to 19.5 million people/day.

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Volume I-Them

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Figure 4-3 Ambient Air Quality in Late Julyand Early August (With the Limits for Dif-ferent Pollutants as 100)

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The Olympic Games is estimated to add 1.3 million to the number of people using public transport everyday. Arrangements shall be made to give priority to public transport during the Games. Free public transpor-tation shall be provided for spectators with admission tickets. Participants and local residents shall be en-couraged to use bicycles and special lanes for cycling shall be created in the Olympic Village. All transporta-tion in competition venues and in the Olympic Village shall use low or zero-emission and low-noise vehicles.

Environmental-friendly materials and facilities shall be used for all development projects of the Games.Measures will be taken to reduce the particulates and noise from the construction sites.

Plans for Solid Wastes Disposal, Sewage Treatment and Energy Management

By 2008, all solid wastes produced in the City shall be safely treated and disposed, 50% of the solid wasteswill be separately collected and 30% recycled for use as resources. All solid wastes produced during theGames shall be separately collected and safely disposed. All the temporary furniture, constructions andbillboards for the Games shall be made by materials that can be regenerated or recycled.

The daily capacity for sewage treatment was 1.08 million tons as of 1999 and will rise to 2.8 million tons by2008, which equals to 90% of the sewage generated at that time. The reuse rate of treated water will reach50% by 2008 (See the figure 4-2).

Beijing’s drinking water meets WHO standards (See Theme 11). The drinking water source areas shall becontinuously protected. Water-saving facilities and non-flush toilets shall be used, and rainwater collectionand reuse system shall be installed in competition venues and the Olympic Village. Drought-enduring plantsshall be planted in and around competition venues.

Cleaner energy shall be supplied to the urban area for domestic usage, and the natural gas consumption willbe increased by a factor of 5 by 2007. Electricity generated from windmills shall be used in the competitionvenues and in the Olympic Village; geothermal and solar energy shall be exploited for hot water supply; andnatural light shall be used for illumination so as to reduce energy consumption.

Protection of Natural Ecosystem and Cultural Heritage

The national strategy for the Western China development and ecological construction will be implemented and

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59

Volume I-Them

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the following three green belts will be established by 2005:

•Forest coverage in mountain areas will reach 70%;

•Trees and grasses with a total area of 23,000 hectares will be planted along the banks of the 5 waterways and the sides of the 10 highways;

•The green belts with a total area of 12,000 hectares will be built within the urban area.

The green coverage of the lands for construction projects for the Games shall reach 40%J50%. A 760-hectare green land shall be created in the Olympic Green.

The City is currently carrying out a project to restore a number of historical sites including the Temple of theEmperor, the Temple of White Pagoda, and the Altar of the God ofAgriculture, with a total investment of 38 million US dollars.

Specialists on arts treasure protection have been involved in the prepa-ration and efforts have been made to protect the cultural heritage inand around the Olympic Green. Plans have also been made for thecontrol of visitors to the historical sites during the Games to preventany possible damage to the cultural heritage.

All facilities and routes for the Games shall be away from the pro-tected areas for water supply and natural conservation. The origi-nally planned routes for international triathlon has been readjustedfor protecting the giant salamander.

Environmental Awareness

An enduring goal of BOCOG will be to popularise the notion that the environment is the third pillar ofOlympism and that sport can be a powerful force in raising awareness about sustainable development at localand global levels.

The public shall be encouraged to use less private cars and enjoy an environment-friendly life style. Primaryand secondary school children shall be given advice to use recycled paper and be friendly to wildlife. Energy-efficient and water-saving facilities are required at hotels, restaurants and stores. The use of disposableproducts shall be restricted; while facilities using ozone-depleting substances shall be strictly prohibited.

Home landscaping competitions shall be carried out in various communities and residents are encouraged toseparately collect their own solid wastes.

Drivers of public transit vehicles and taxis are required to carry out regular maintenance programs so as tokeep their vehicles in good conditions and in compliance with the emission standards.

An International Workshop on Sports and Environment will be held.

4.4 Environmental Impact Assessment

A 400-page Environmental Impact Assessment (EIA) of all proposed venues and major events of the Gameshas been completed by Beijing Municipal Research Academy for Environment Science. The recommenda-tions raised in the EIA for improving the environmental performance will be implemented during the design-ing and construction phase. The EIA has concluded that the environmental quality around the Olympicfacilities will be greatly improved. The use of the Olympic venues after the Games will comply with Beijing’sMaster Plan of Development. The information offered in the EIA is reliable, according to a professionalpanel of specialists both at home and from overseas. The EIA has been approved by the municipal Beijing’sMaster Plan.

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4.5 Related Environmental Projects and Environmental-Friendly Technologies

Proposals for application of new environmental-friendly technologies from scientific research institutionsand universities have been presented to BOBICO, many of which are accepted, such as:

•The annual capacity of electricity generated by windmills around Beijing will be increased from 125 million kwh at the moment to 1,070 million kwh by 2008, and the Games will purchase this electricity at price higher than that offered by power distribution network to meet 20% of the electricity demand by the venues.

•80%-90% of the street lamps around the venues will use the electricity generated by photovoltaic technology and solar energy.

•Vacuum glass tubes will be used for solar energy collection, supplying 90% of the hot water during the Games.

•New technology of fuel cells is being developed in China. BOBICO hopes that the Games will promote the application of this technology.

•Beijing has plans to add 160 more geothermal wells by investing 100 million US$. Air conditioning systems using geothermal-operated pumps will be increased.

•Satellite GPS System will be used to reduce traffic jams and air pollution caused by vehicles.

•Nanometer technology shall be adopted to produce construction materials with enhanced abilities to resist bacteria and aging, and to decompose harmful gases.

4.6 Official Guarantee

Official guarantees have been obtained. (See Theme 18)

4.7 Others

Beijing will accomplish its plan for ODS phase out six years ahead of schedule and has committed to saveenergy and reduce its green house gas emissions.

Summer camps will be organized for the world youngsters and workshops on the concept of “Green Olympics”will be also organized.

Tree-planting activities will be organized for the world sports delegations and an “Olympic Memorial Forest” willbe created.

Implementation of ISO14000 Standards and promotion of cleaner production will be extended to moreenterprises.

BOBICO/BOCOG will establish a Business and Environment Advisory Group of industry associations, busi-nesses and sponsors to facilitate the input of expertise and ideas, and provide additional investment oppor-tunities for sponsors.

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B . M e t e o r o l o g y4.8 Temperature and Humidity

Beijing has a temperate continental climatewith four distinctive seasons. Meteorologi-cal data collected in the past ten years showthat Beijing’s daily average air temperatureranges from 24.5°C to 26.1°C between July25th and August 10th. The peak tempera-ture appears at 3 o’clock in the afternoonbut it quickly drops down afterwards. Asthere is a fairly big difference in tempera-ture between day and night, temperatures inthe morning and in the evening are moderate(See the table 4-3 and figure 4-4). The hu-midity in Beijing is pleasant for outdoor ac-tivities (See the table 4-4). The temperatureand humidity of other cities are shown in theTables.

4.9 Precipitation

In Beijing most of the precipitation occursin July and August, but rain showers normallydo not last long. Continuous cloudy andrainy days are rare and shall not cause anysubstantial impact on the Games.

4.10 Elevation

See the table 4-6.

Figure 4-4 Daily Temperature Variations inBeijing Between July 25th and August 10th

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Mean precipitation in July(mm)

Mean precipitation inAugust (mm)

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Table 4-5 Precipitation in Beijing and Other Related Cities

Table 4-4 Daily Humidity Variations (%) in Beijing and OtherRelated Cities Between July 25th and August 10th

567464656670

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Table 4-3 Daily Temperature Variations (°c) in Beijing andOther Related Cities Between July 25th and August 10th

NU:MM ON:MM

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Table 4-6 Elevations of Beijing and Other RelatedCities

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65

Volume I-Them

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Beijing’s economy has been growing at a fast pace over the last decade, reaching an average annualincrease of 17.5% in its revenue. There is sufficient guarantee for the supply of capital and other

resources from the public and private sectors to meet the needs of the Olympic Games. Furthermore,

investment in infrastructure to support the Games is compatible with the long-term economic andsocial development plan of Beijing and will not impose any extra financial burden on the city’s

people.

The BOCOG budget, with its associated guarantees, will ensure the success of the Games and pro-

vide the basis of opportunities the Games can bring to the people of China, the IOC and the world.

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67

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FINANCE

5.1 Financia l Guarantees

A financial guarantee of support for Beijing to host the 2008 Olympic Games has been given by the ChineseCentral and Beijing Municipal Governments.

A copy of this guarantee jointly signed by the Minister of Finance of China, the Chairman of the StateDevelopment and Planning Commission of China, the Director of the Beijing Finance Bureau and the Chairmanof the Beijing Development and Planning Commission, being the responsible Government officials, is in-cluded in Theme 18.

The financial guarantee includes:

• funding of any BOCOG revenue shortfalls should they occur;• pre-financing of all BOCOG expenditures prior to receipt of Games revenue;• the construction of the infrastructure within Beijing to support the Games; and• the construction of the venues and facilities required to host the Games.

5.2 Price Control on Goods and Services

The Central and Beijing Municipal Governments have pledged that consumer prices and hotel rates in andaround Beijing will be effectively managed to ensure that prices are fair and reasonable during the Gamesperiod. A guarantee to achieve this level of price control has been jointly signed by the Chairman of the StateDevelopment and Planning Commission of China and the Director of the Prices Bureau and is included inTheme 18. In addition, guarantees have been obtained from the hotels as provided in Theme 18.

For services provided directly by BOCOG via rate card (such as transportation, radio and telecommunications,and rentals of technical equipment and offices), a final price list will be submitted to the IOC for theirapproval two years prior to the hosting of the Games.

5.3 BOCOG Asset Disposal and Post-Games Venue Responsibilities

BOCOG assets at the conclusion of the Games will include the furniture, equipment and temporary fixturespurchased by BOCOG for the conduct of the Games. Assets likely to be included in this category wouldinclude items of a practical nature e.g. sports equipment, computers, etc., and items of a memorabilia naturee.g. look of the Games and ceremony assets. The nature of disposal will depend on the procurement strategyagreed for each item. It is anticipated that a significant portion of the items would be disposed of via publictender and/or auction.

Opportunities to link procurement strategies with the longer term needs of Beijing and China will also beexamined.

The funds received from the sale of any assets will be included as revenue for BOCOG.

The sports venues, the Olympic Village, the Media Village and other facilities used to host the Games will beowned by the relevant government authorities or private organizations. These government authorities andprivate organizations will be responsible for the ongoing operation and maintenance of the facilities.

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69

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5.4 Taxes5.4.1 Taxes Applicable in China

The current Chinese industrial and commercial tax regime (excluding tariffs and agriculturaltax) comprises 17 specific taxes. Of these, the following taxes would apply for the hosting ofthe Olympic Games in Beijing:

• business tax;• value-added tax (VAT);• consumer tax;• corporate income tax;• individual income tax;• vehicle and road tax; and• stamp duty.

5.4.2 The Tax Status of BOCOG

As indicated in Theme 2, BOCOG will be established as an independent legal entity, legallyresponsible for civil obligations and liabilities.

Under current Chinese Taxation Law, BOCOG would be a taxpayer. In support for the OlympicMovement, however, the Chinese Government has promised that, following approval by theLegislature, BOCOG will be exempt from taxes. This exemption will include revenues fromthe sale of broadcasting rights for the Games, from the Olympic marketing programme, andfrom sponsorship activities, whether the party that makes payments to BOCOG is resident inChina or elsewhere.

5.4.3 Other Taxation Matters

In support for the Olympic Movement, the Chinese Government has promised, upon approvalby the Legislature, to exempt the IOC and other Olympic participants from taxes otherwiserequired under Chinese Taxation Law. These include:

• business tax and withholding tax on income from the Beijing Olympic Games (e.g. income from the sale of television rights);

• individual income tax due in China for participating athletes in conjunction with various monetary prizes;

• VAT levied on the proceeds from the sale by BOCOG of sponsored commodities and post- Olympic sale of assets; and

• reimbursement to BOCOG of the VAT levied on commodities received as donations or sponsorships or purchases for its own use.

Whilst the Chinese Government can grant tax exemptions within China, it is understood thatresidents in foreign countries may be required to pay withholding or similar taxes in theirrespective countries for payments to BOCOG for media rights, the Olympic Marketingprogramme and other sponsorships.

Should Beijing be successful in its bid, the tax exempt status of BOCOG will be favourable forthe clarification of the conditions of such withholding taxes. In addition we will negotiatewith the governments of the countries concerned regarding exemptions for these taxes, ifnecessary.

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71

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5.5 Budgeting5.5.1 Budget for the Olympic GamesA. Introduction

The forecast budget for the Beijing 2008 Olympic Games has been prepared on the basis of aconservative forecast of receipts and a realistic forecast of expenditure.

The process of preparing this budget has included:

• consultation with the Governments of China, Beijing Municipality and other relevant local areas;• consultation with experts both nationally and internationally for each budget item;• detailed review and analysis of the budgets of previous games, particularly Sydney;• consultation with the IOC and COC; and• comprehensive review of the budget process by Arthur Andersen and Bovis Lend Lease who have specialist knowledge relating to the Sydney Games.

The planning and budget for the Games have resulted in an outcome with little or no risk tothe IOC and with significant opportunities for the IOC, Beijing, China and the world. Inparticular:

• the budget results in a surplus and contains responsible contingencies built into each budget item;• the Chinese and Beijing Municipal Governments are committed, and have the financial strength, to support BOCOG and all other aspects of the preparation for and hosting of the 2008 Games;• the Chinese Central, Beijing and other city Governments concerned have guaranteed that the facilities and venues for the Games will be constructed as scheduled;• the Chinese people will offer full support for the Games; and• the Games will generate significant business opportunities within Beijing and China.

In addition, the planning for the Games has been based on:

• the existing plans and commitments for the construction of major transport, environmental and other infrastructure in Beijing;• the extensive use of existing facilities, many of which are being upgraded;• the extensive use of the Olympic Green as the centre of the Games; and• the construction of facilities which have already been planned for Beijing and which will have a long term legacy for the city and its people.

B. Detailed Budget

The following is a summary of the forecast receipts, payments and surplus for the 2008Games with a brief description of each item. The detailed basis for each item will be madeavailable to the Evaluation Commission.

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43.63709.00 190.00102.00

40.0045.00

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11.696.282.462.770.18

130.00130.00

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1419.00275.00

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0

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1559 1622 2379.57 2573.13 2742.61 2055.29 1286.75 38.25 14256.60

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12 30 31 12 0 0 0 0 85

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BOCOG Budget (Final Budget and Presentation to be Reviewed)

1 Television rights1 43.63 709.00

2 TOP sponsorship2

3 Local sponsorship4 Licensing5 Official suppliers

8 Ticket sales9 Donations10 Disposal of assets11 Subsidies-National Government-Municipal Government

A REVENUES US$ m % B EXPENDITURE US$ m %

190.00102.00

40.0045.00

3.00

11.696.282.462.770.18

B1 Capital investments13-Sports facilities -Olympic Village

-MPC and IBC-MV

6 Olympic Coins Program Philately7 Lotteries

130.00130.00

50.0020.00

8.008.003.081.23

B2 Operations14-Sports events

-Olympic Village-MPC and IBC-MV

15 Ceremonies and Programs16 Medical Services17 Catering18 Transport19 Security20 Paralympic Games21 Advertising and promotion22 Administration23 Pre-Olympic events and coordination

1419.00275.00

65.00360.00

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30.0051.0070.0050.0082.0060.00

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25 Shortfall

140.0020.0080.00

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46.00

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Total25 Surplus 16.00

1625.00 Total-US dollar/ RMByuan exchange rate used in preparing the budget : 1: 8.27-Date of finalisation of the budget: 14 December 2000

8.62

2.83

6.22

0.98

C. Revenues

The projected revenues from the Olympic lottery, the Olympic coin program and philately,and government subsidies have been endorsed by the competent authorities. Written confir-mation has been obtained from the IOC on the split of revenues from TV rights and fromTOP sponsorship programs.

C Capital Investments Construction Cost (US$ m) Total

2001 2002 2003 2004 2005 2006 2007 2008

Environmentalprotection

Airport

Total

1000 1000 1500 1500 1500 1300 827 0 8627

547 592 636 636 636 313 313 0 3673 12 30 31 12 0 0 0 0 85

1559 1622 2379.57 2573.13 2742.61 2055.29 1286.75 38.25 14256.60

Non BOCOG Budget City, Regional or State Authorities and Private Sector

Planned Non Olympic Specific Expenditure

Roads & railways

Olympic Related Expenditure

Note: The MPC, IBC and Medial Village will use rented facilities and the existing accommodation capacity is enough for spectators.

Olympic VillageSports venues 212.57 425.13 495.99 283.42 12.01

38.251429.12

110.62 158.87 134.740

442.48

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75

Volume I-Them

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1. Television rightsThe revenue from television rights of the 2008 Olympic Games allocated to BOCOG is estimatedat US$833 million at 2008 prices (according to the IOC fax dated 21 March 2000), whichwill be US$709 million when converted to 2000 prices.

2. TOP sponsorshipBOCOG is to be allocated a share of approximately US$200 million of the revenue from theTOP programs, which will be US$130 million when converted to 2000 prices.

3. Local sponsorshipBOBICO has approached a number of multinational and large Chinese corporations on theprospect of sponsorships. It expects to receive US$130 million in sponsorships and servicesfrom 10-15 multinationals, large corporations and manufacturers of special equipment (SeeTheme 6 for details).

4. LicensingTotal licensing revenue for the Beijing 2008 Games is estimated to be US$50 million.

5. Official suppliersTo meet the needs of the Games for various equipment, supplies and related services, BOCOGhas budgeted US$20 million worth of supplies and services from official suppliers at homeand abroad.

6. Olympic coin program and philatelyBOCOG will, in consultation and cooperation with the People’s Bank of China, which isChina’s central bank, ask governing institution to issue 1.5 million gold and silver Olympiccoins. This is expected to generate for BOCOG a revenue of US$8 million. BOCOG will also,in consultation and cooperation with the State Post Bureau, ask governing institution to issueOlympic stamps. BOCOG will consult governing department for the possible issue of com-memorative banknotes.

7. LotteriesBOCOG and the Ministry of Finance plan to operate an Olympic Games Lottery from 2001to 2008 if Beijing becomes the Host City. The lottery is expected to generate US$180 millionin revenue.

8. Ticket salesBOCOG will have 7 million tickets for sale at home and abroad, which is expected to gener-ate a revenue of US$140 million. (Details of the ticketing program are given in Theme 6Section 6.3)

9. DonationsDonations from business enterprises, social organizations, and individuals are estimated to beUS$20 million.

10. Disposal of assetsRevenues arising from disposal of assets owned by BOCOG are estimated to be US$80 million.

11. Government subsidiesThe Central and Beijing Municipal Governments will provide BOCOG with US$100 mil-lion in subsidies.

12. OtherRevenues from the licensing and leasing of commercial premises in the Olympic complexes,from the leasing of space, equipment, and facilities of the MPC and the IBC, and from therentals of accommodation in the Olympic Village before and after the Games are estimated tobe US$46 million.

76�1�

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8.00 8.00 20.16 28.1620.16

3.503.50 3.50

37.51 37.5137.5142.68 42.6842.68

4.00 4.00 3.31 7.313.31

282.65 282.65282.65

31.77 31.7731.77

28.48 28.4828.48

3.50 3.50 3.50

74.85 74.8574.85

15.00 15.00 101.01 116.01101.01

34.22 34.2234.22

1.75 1.75 1.75

13.03 13.0313.03

7.00 7.00 7.00

3.50 3.50 3.50

3.50 3.50 3.50

87.59 87.5987.59

83.21 83.2183.21

36.14 36.1436.14

1.75 1.75 1.75

3.50 3.50 3.50

102.00 1429.12 1531.12

40.00 442.48 442.48 482.4840.00

30.00 30.00 30.00

15.00 15.00 15.00

3.00 3.00 3.00

40.00 150.00 190.00 2061.601871.601820.44 51.16

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5.5.2 The total investment in sports facilities is estimated to be US$ 2061.6 million, of which US$190 million will be financed by BOCOG, and US$1871.6 million by the government and other sectors.

Total Investment in Facilities (US$m) by Physical Location

40.00

1. National Stadium2. National Indoor Stadium3. National Swimming Centre

Sports Facilities Sports BOCOG Budget Non BOCOG Budget

4. CIEC Hall A

5. CIEC Hall B

33. Qingdao International Marina34. Tianjin Stadium35. Qinhuangdao Stadium36. Shenyang Wulihe Stadium37. Shanghai Stadium

Olympic VillageMPCIBCMedia VillageTotal

UpgradeofExistingFacility

NewFacility

NewFacility

SubtotalUpgradeofExistingFacility

ATHLETICSGYMNASTICSSWIMMINGTABLE TENNISTRAMPOLINESHOOTINGFENCINGWRESTLINGRHYTHMICBADMINTON

6. CIEC Hall C

7.CIEC Hall D8. Olympic Green Archery Ground9. National Tennis Centre10. National Hockey Stadium11. Olympic Sports Centre Stadium

ARCHERYTENNISHOCKEYFOOTBALLMODERNPENTATHLON

14. Ying Tung Natatorium15. Beijing Shooting Range16. Beijing Shooting Hall17. Laoshan Velodrome18. Laoshan Mountain Bike Course19. Road Cycling Course20. Wukesong Indoor Stadium21 Wukesong Baseball Field22. Fengtai Baseball Field23. Forbidden City Triathlon Venue24. Shunyi Olympic Aquatic Park25. Beijing Country Equestrian Park26. Shoutiyuan Sports Hall

HANDBALL

BASEBALL

WATER POLOSHOOTINGSHOOTINGTRACK CYCLINGMOUNTAIN BIKEROAD CYCLINGBASKETBALLBASEBALLBASEBALLTRIATHLONCANOE/KAYAKEQUESTRIANTAEKWONDOJUDOWEIGHTLIFTINGVOLLEYBALLVOLLEYBALLFOOTBALLBOXING

BEACHVOLLEYBALL

SAILINGFOOTBALLFOOTBALLFOOTBALLFOOTBALL

Subtotal

12. Olympic Sports Centre Gymnasium13. Olympic Sports Centre Softball Field

32. Tiananmen Beach Volleyball Ground

27. Beihang Gymnasium28. Beitida Sports Hall29. Capital Indoor Stadium30. Workers’ Stadium31. Workers’ Indoor Arena

6.00

246.7145.67

107.51

246.7145.67

107.51

246.7145.67

107.516.00 6.00

4.00 4.00 4.00

3.00 3.00 3.00

7.00 7.00 7.000.00

43.9243.9243.9268.0268.0268.02

12.99 12.99 24.9912.0012.00

7.007.00 7.00

8.00 8.00 27.69 27.69 35.69

8.00 8.00 20.16 20.16 28.163.503.50 3.50

37.51 37.51 37.5142.68 42.68 42.68

4.00 4.00 3.31 3.31 7.310.00

282.65 282.65 282.6531.77 31.77 31.7728.48 28.48 28.48

3.50 3.50 3.50

74.85 74.85 74.8515.00 15.00 101.01 101.01 116.01

34.22 34.22 34.22

1.75 1.75 1.7513.03 13.03 13.03

7.00 7.00 7.003.50 3.50 3.503.50 3.50 3.50

0.00

87.59 87.59 87.5983.21 83.21 83.2136.14 36.14 36.14

1.75 1.75 1.753.50 3.50 3.50

40.00 40.00 442.48 442.48 482.4830.00 30.00 30.0015.00 15.00 15.00

3.00 3.00 3.00150.00 190.00 1,871.60 2,061.60

Total

1820.44 51.16

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210.00165.00415.75333.51308.54204.84106.2544.251.00

1 192.00100.00100.0010.00

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5.5.3 Cash Flow Forecast

5.5.4 Information for the Evaluation Commission

The information to be provided on the occasion of the visit of the Evaluation Commissionwill include:

• full data and information supporting each item in the Budget;

• costs for human resources and technical support;and

• names and qualifications of all members of the team that prepared the Budget.

Unit: US$ millon

-7 -6 -5 -4 -3 -2 -1 1 2

Cash positionBeginning of year

0 1.00 44.25 106.25 204.84 308.54 333.51 415.75 165.00 0

1.00 2.00 4.00 5.00 70.00 170.00 160.00 1192.00 5.00 0

10.00 100.00 100.00 1192.00

G a m e s

1.00 44.25 106.25 204.84 308.54 333.51 415.75 165.00 210.00 0

51.00 94.25 156.25 254.84 358.54 383.51 465.75 215.00 260.00 50.00

Run-up to theGames (year)

Cash inflows-Bank financing-TV Rights-TOP sponsorship-State and city-Other income

2.00 45.25 66.00 103.59 173.70 194.97 242.24 941.25 50.00 0

Cash outflows-Capitalinvestments-Operations

60.00 70.00 60.00 0

5.00Cash positionEnd of yearBank credit line-Less cash utilised

50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00

-Cash available

BOCOGCash Flow

Forecast

1.00 2.00 4.00 5.00

0 40.00 60.00 60.00 80.00 80.00 80.00 236.00 0 2.00 5.25 6.00 30.00 8.50 8.50 7.20 32.55 0

6.50 14.30 14.30 41.60 123.30 0 7.09 70.90 92.17 113.44 549.40 0

50.00

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China is not only the largest developing country in the world, but also the second largest invest-

ment market, next only to the United States. Many multinationals have set up offices and mademajor investments in Beijing. As China is about to join the WTO, the Chinese market will open its

arms wider to embrace the world, offering further opportunities for domestic and international

investors . This will provide BOCOG with a reliable source of revenue for its Olympic marketingprogram.

The widespread enthusiastic participation of the 1.25 billion Chinese people in the Games prom-ises great success for the Olympic marketing program which will offer many other opportunities on

a local and global basis before and after the Games.

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M a r k e t i n g

6.1 Chine se Olympic Commit t ee (COC ) Marke t ing--- Joint Marke t ing by BOCOG and COC

BOBICO has reached an agreement with the COC on behalf of the candidate city.

The COC pledges that in accordance with the requirements of the Manual for Candidate Cities of the2008 Olympic Games and the Host City Contract, and in the spirit of the IOC Clarifications to Questions6.1.2 of the Manual of 1 December 2000 concerning the joint marketing program and the standardagreement, it will develop a joint Olympic marketing program with BOBICO with regard to the market-ing of the 2008 Olympic Games.

The principal components of the program include:

1. The COC guarantees that its sponsorship activities related to Olympic Marketing will cease according tothe date defined by the IOC.

2. BOCOG and the COC undertake to protect the correct use of the Olympic symbol, emblems, logos,marks and other Olympic related marks and designations as required by the IOC.

3. BOCOG and the COC will begin their implementation of joint marketing plan from 1 January 2003 asrequired by the IOC.

4. The COC will coordinate the marketing plan of its affiliated national associations in order to incorporatetheir plan in the joint marketing program with benefit-sharing and ensure that national marketing planshould not be in conflict with the obligations taken by the COC towards the IOC.

5. The distributions of the revenue from the joint marketing program allocated to the COC and the relatednational associations will be no less than the revenue they expect to generate over the determined period.

Full details and terms will be provided in the contract between BOCOG and the IOC.

6.2 Olympic Games Marketing---Chinese Industry Support

It is anticipated that approximately 10 international corporations will join the ranks of BOCOG partners,and 10 to 15 large enterprise groups will become BOCOG sponsors.

Apart from the multinational companies included in the IOC’s TOP program, it is anticipated thatBOCOG will be able to attract sponsorship from large corporations including the following categories:

• petroleum and petrochemicals;• telecommunications;• banking and finance;• insurance;• machinery and electronics;• engineering and construction, and building materials;• metallurgy (non-ferrous);

• textile and light industry (garment materials);• civil aviation, rail and air freight services;• postal services;• energy (water and electricity);• transport;• foodstuffs; and• medical and health care.

BOCOG will also work with the IOC to develop special products for the 2008 Olympic Games.

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Paralympic Marketing

BOCOG will follow the global marketing plan of the IPC. In collaboration with the COCand the Chinese Sports Association for the Disabled a unified Paralympic marketing programwill be implemented. This will facilitate the raising of funds for the hosting of the ParalympicGames through sponsorship, donations, the issuing of licenses, organization of lotteries, ticketsales and the issue of commemorative stamps and coins.

6.3 Ticketing6.3.1 The Number of Available Tickets

Based on the capacity of the competition venues and the competition schedule, it is estimatedthere will be a total of over 9 million tickets available.

6.3.2 Expected Ticket Sales

It is anticipated that 7 million tickets will be sold.

6.3.3 Price Range of Tickets

The sale of tickets is to ensure as manypeople can participate in the Games aspossible. This will be achieved by an u m b e r o f s i m p l e b u t e f f e c t i v estrategies:

• The overall pricing of tickets will be kept down to an affordable level, giving the widest possible number of people the opportunity to purchase tickets to events.

• As many events as possible will be allocated reasonable and fair proportion of public seats.

• A significant number of tickets will be allocated for the disadvantaged and school children to help ensure our future generations benefit from the legacy of the Games.

The revenue generated from ticket sales is expected to be US$140 million.

Average ticket prices have been assumed as follows:

• Opening and Closing Ceremonies : US$260;• Primary events : US$80;• Secondary events : US$15.

6.4 Commemorat ive Coin Program6.4.1 Agreement with the People’s Bank of China

It has been agreed with the People’s Bank of China that it will work with BOBICO to developand implement a commemorative coin program for the Beijing 2008 Olympic Games.

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6.4.2 Content of the Coin Program

Commemorative coins will be issued. These will be distributed in batches each year from2005 to 2008.

It is anticipated there will be 12 different coins produced of which 4 will be gold (60,000 ofeach type) and 8 are silver (200,000 of each type).

6.4.3 Total Sales and Revenue from the Coin Program

It is estimated that 1,500,000 gold and silver commemorative coins will be sold, bringinga revenue of US$ 8 million for BOCOG.

6.5 Lotteries--- Special lottery program for the Games

BOCOG has obtained endorsement from the Ministry of Finance for the conduct of an Olympic Lottery ifBeijing is awarded the 2008 Olympic Games. The lottery tickets will be sold through the existing networksof China’s Sports Lottery. The lottery programme will operate from 2001 to 2008 and produce a forecastrevenue of US$ 180 million.

6.6 Advertising

The relevant authorities of Beijing have pledged to follow the Host City Contract with regard to advertisingcontrol. During the required period BOCOG will have complete control over billboard advertising, skyspace advertising, and advertising on the public transport system.

The IOC’s TOP sponsors and the participants of the joint marketing program will have priority and exclusiverights over the use of these advertising sites.

In order to promote the Olympic Movement and safeguard the interests of Olympic sponsors, Beijing au-thorities have pledged that specific statutes and rules in line with the legislation implemented for the Sydney2000 Olympic Games will be adopted to prevent ambush marketing during the 2008 Olympic Games. UponBeijing winning the bid, the Beijing Municipal Government will begin to enact relevant statutes and regula-tions in accordance with due legal procedures.

6.7 Sponsor Hospitality Village

Provision will be made within the Olympic Green and at competition sites for a range of sponsor hospitalityopportunities. This will be on a tiered basis with Sponsor Hospitality privileges being dependent on the levelof sponsorship provided to BOCOG .

All Sponsor programs will be developed on a purely cost recovery basis.

The Sponsor Hospitality program will include the development of a Sponsor Hospitality Village for use byTOP sponsors. A high-rise, luxury multi-purpose apartment building will be constructed very close to theMain Stadium. This building will offer facilities for entertainment and recreation, business conferences, andexhibitions. It is envisaged this building will be suitable to provide Sponsor Hospitality services during theGames period.

Beijing 2008 Volume 01

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