Euro-2012 News Online

As states “Polska” edition, UEFA can deprive Kiev of its right to organize Europe Football Championship 2012 if economic situation in Ukraine is going to get worse. “Polska” mentions three emergency scenarios.

First version: Poland takes part of Ukrainian obligations, as crisis situation in Ukraine can increase chances for Krakow and Khozhuw - Poland’s backup cities.

Next version: Euro-2012 is switched from Ukraine to Germany.

The third emergency plan previews Great Britain and Italy to host Euro-2012 in case of Poland’s difficulties with carrying out of the program.

March, 11^th UEFA committee is going to discuss readiness of Poland and Ukraine to host the Championship. At the meeting committee will ratify its final decision.

Early February UEFA Secretary General David Taylor paid visit to five Ukrainian cities (except of Donetsk) striving to host Euro-2012 matches. Mr. Taylor was satisfied with the progress achieved during Olimpiyskiy NSC reconstruction in Kiev.

As claimed Yury Pavlenko, Minister of Ukraine for Family, Youth and Sport Affairs by the end of 2009 Ukraine will have 3 stadiums and 9 training bases ready to host Europe Football Championship final 2012.

“Dnepropetrovsk stadium is ready. By the end of the year sport arenas in Kharkov and Donetsk are going to be put in commission. In 2010 construction works will be finished at stadiums in Odessa and Lvov, also renovation of key arenas - National stadium in Warsaw and Olimpiyskiy stadium in Kiev, which will hold open and final matches of Euro-2012 -is to be finished this year too. Besides, 9 of 32 training bases will be set in operation this year” - said Y. Pavlenko, cited by press-agency of the Ministry.

Minister has also impugned the statement of mass-media that in case of Ukraine’s unreadiness Poland can host Euro-2012 final together with Germany. “Such provocations are spread by opponents of Ukraine and Poland’s candidacy for Championship organization. Dynamics of Ukraine’s preparation for Euro-2012 only stimulates the spread of such groundless claims. Neither me, nor my colleagues had doubts that we’d have success in Championship organization and that Ukraine and Poland would organize football holiday at such a high level that it’ll serve as a new standard for future hosts of the Championship” - highlighted the Minister.

Financing volumes necessary for projects realization within the framework of Poland’s preparation to host Euro-2012 are virtually twice as big as in Ukraine, according to data received from PMR Consulting Company.

PMR professionals estimate total cost of Polish projects in almost 30 bln dollars, which is twice as much as in Ukraine. As show the data from last report of the company which specializes in Eastern Europe markets, around 15 bln dollars will be spent for roads construction in Poland.

The company notes that since 2012 the country can expect economic growth speeding-up thanks to Championship building projects implementation. In 2009 Poland will get to know the winners of almost all bids for Euro-2012.

It’s significant that 71 % out of 250 biggest building companies in Poland are expecting to carry out works for Euro-2012.

PMR underlines Ukraine is leaving behind Poland in stadiums’ construction, though it may have difficulties with preparation pace in infrastructure development, especially hotels, roads and airports updating.

As informed today at the press-conference Yury Pavlenko, Minister of Ukraine for Family, Youth and Sport Affaires, total cost of Olimpiyskiy NSC reconstruction makes 2.115 bln hryvnyas.

According to Minister, the cost of building and assembly works reaches 1.4 bln hryvnyas: “In reconstruction we proceed from those amounts approved of by concept project. Of course the cost at the conceptual level and works stage differs. But I hope we’ll keep within the limits. The cost is going to be précised in the end of March - early April”.

Mr. Pavlenko stated dollar rate won’t have drastic influence on reconstruction cost: “Even now bids show that some materials became cheaper. Some items grew in price but I see no problems with the rate” - highlighted the Minister.

Yury Pavlenko also underlined the guarantee of successful carrying out of UEFA terms for Euro-2012 organization (for 2009 it’s finishing of second stage in reconstruction and building of 9 training bases) is nonstop financial support.

The Minister informed in 2009 for Olimpiyskiy reconstruction they will need 800 mln hryvnyas. “At the moment 120 equipment units and 800 employees are working in the stadium. In May the number of builders will increase and reach up to 5 thousand workers” - told Y. Pavlenko.

As show data from recent analysis by PMR International Research Company, general projects’ cost connected with organization of Europe Football Championship final 2012 will reach 95 bln zlotys (about 30 bln US dollars). 

It’s estimated that in 2010 most of the projects will undergo building process, so in 2010-2011 situation in Polish building sphere is going to be better than this year.  Rapid infrastructure development in the country related to Euro-2012 organization PMR Company considers as key reason for building development in Poland. According to the study carried out by the consulting company, among 250 biggest building companies in Polish market 71 % of them are expecting to personally take part in projects implementation, connected with the Championship organization.  

Company’s professionals consider that Championship organization and substantial financial aid from EU funds is driving force to encourage building development in Poland. Their weight, as the experts assure, will grow when private funds draw out of economics and development sector is in remission. “With 80 % of successful projects implementation related to Euro-2012, investment cost would make 75 mln zlotys (over 25 bln US dollars), that is the same amount as cost building and assembly equipment of big companies in 2008″ - estimated the advantages of Euro-2012 organization Bartlomey Sosna, PMR analyst.

The study highlights that because of falling behind in Championship organization, some previewed projects won’t be finished before 2012. Most of all uncertainty is caused by Programs Realization terms, connected with roads construction.

Comparing the condition of preparation for Football Euro Forum in Ukraine and Poland, the PMR experts state in Poland are better implemented those projects related to infrastructure development. However in Ukraine is carried out with more hectic pace key investment in Euro-2012 - stadiums’ construction.

PMR is International Research Company specializing in Central and Eastern Europe countries market analysis, it provides analytic publications and consulting services.