Francophonie Games' governing body seeks 'more realistic' approach to bid budgets

The Francophonie Games' governing body says it is considering changes to a conventional budget in a hosting application guide that New Brunswick used for its $17.5-million bid three years ago.

The conventional budget is set at 10 million euros, or almost $15.5 million Cdn, in an International Organization of the Francophonie document that serves as a guide for countries applying to host the event.

The amount was set in an attempt to create a standard budget for the Games, held every four years alternating between countries in the north and south hemispheres, wrote Thomas Gil, interim director of partnerships, marketing and communications for the Paris-based group, in an email.

The basic budget was used by the committee of community volunteers and provincial civil servants that prepared New Brunswick's pitch to hold the Games in 2021. It was revealed this month the estimated cost of holding the Games in Dieppe and Moncton soared 664 per cent to $130 million once a business plan was prepared.

Gil's statement followed questions about why the bid value was set so low and whether it was meant to undercut bids from other communities to host the event. 

An independent review of the $130-million budget called the original bid "significantly underestimated," suggesting it was an attempt to satisfy the international organization, which wants a fixed budget for every edition of the Games.

"That desire is likely linked to the current perception related to excessive costs and overruns for big sporting events like the Olympics," the report said.

'More realistic approach is required'

The €10-million figure is now under review ahead of applications for hosting the 2025 Games, Gil wrote. He said the figure is now viewed as underestimated and had assumed all infrastructure to host the Games was already in place. 

"A more realistic approach is required, taking into account all the organizational aspects of the event," Gil wrote. 

He said that since the conventional budget is outlined in the application guide and is therefore the same for all candidates, "it has not been a determining factor in the choice of the host government of the 2021 Games."

However, not all bids used the basic budget.

Sherbrooke, Que., bid for the 2021 Games with a business plan that pegged the cost of holding the event at $50 million. 

New Brunswick Premier Blaine Higgs has said the province won't contribute more than $10 million to host the event, while the federal government is only willing to pay half the event cost, leaving a funding gap of more than $50 million based on the budget developed by the local organizing committee.

The independent review of the $130-million business plan found the cost could be cut to $115 million. It suggested minimum cost of the Games would be $72 million, but that would significantly affect the quality of the event. 

"The OIF remains confident in the willingness and ability of Canada (and) New Brunswick to organize successful Games around the values of solidarity, diversity and excellence," Gil wrote.

The Games are expected to bring more than 3,000 top athletes and artists from around the Francophone world to the host cities of Dieppe and Moncton. Despite the name, the Games are open to all New Brunswickers regardless of the language they speak.