STORY:
Expo 2000 Hannover

Hannover Expo 2000 organizers have just finished their financial planning, and are happy to report that the event will have "sound and stable economic planning." German central government and the state government of Niedersachsen will each contribute DM 200 million as risk-bearing partners, in order to render the EXPO 2000 programme still more attractive.

On the basis of careful analyses, the partners decided to drop their original demand that EXPO 2000 Hannover GmbH must close its accounts with a break-even result.

"The additional funding is also welcome from an economic point of view. The broadened financial scope and the attendant guarantee of liquidity provide the platform for attractive contents and marketing of EXPO 2000. This also makes EXPO 2000 an interesting proposition for the German economy," said Helmut Werner, Chairman of the Supervisory Board.

The World Exposition is claimed to have created around 19,000 new jobs in the region already, and according to a study by the Norddeutsche Landesbank (Nord/LB) over 100,000 people will have found temporary employment as a result of EXPO 2000 by the end of the year 2000. According to the Nord/LB study, EXPO 2000 will generate around DM 17.6 billion in the national economy, resulting in tax revenue of more than DM 4 billion, even after taking account of the latest injection of capital. EXPO 2000 will thus be of enormous benefit to the taxpayer.

"Not to mention the assets which EXPO 2000 is creating in the Hannover region," Mr Werner continues. The World Exposition's organisers are investing DM 400 million in modernisation of the Hannover Exhibition Grounds and a further DM 165 million in the East Pavilion Site and the EXPO Plaza, which will be used by the city of Hannover's municipal authorities after the end of EXPO 2000. EXPO 2000 Hannover GmbH is subsidising the EXPO 2000 Projects All Over The World in Niedersachsen to the tune of DM 70 million and investing DM 35 million to expand the capacity of the Park+Ride parking facilities in the region.

Breuel: Start of the high-level programme offensive

The Commissioner General and Chief Executive Officer of EXPO 2000 Hannover GmbH was delighted at the Supervisory Board's decision: "Germany is to get an EXPO we can be proud of throughout the world," said Birgit Breuel. "This calls for impressive content and interesting packaging," Breuel went on: "That's why we're now following up the financial debate with an attractive and exciting programme offensive."

Of the DM 400 million which the Supervisory Board has now approved in passing the financial plan, DM 200 million is to be allocated to the programme offensive. Measures here include a youth camp, daily national festivals, additional programmes on outdoor stages, a daily parade and intensified advertising to attract visitors. The remaining DM 200 million are to be kept available as a planning reserve.

"The envisaged 40 million visitors represent the set target for the management and the Supervisory Board," said Werner. In this connection, Werner referred to the visitor figures for the World Exposition in Portugal, which was seen by around 80 per cent of the Portuguese population. "This also makes the Supervisory Board and the management confident that the set target will be achieved."

At present, partners from the business community have contributed around DM 370 million to the World Exposition. This represents more than half the planned figure for revenue from the business community. Contracts with a total value of further DM 120 million are in their final preparatory stages. Daimler-Benz recently signed up as the eighth World Partner.

Costs of interest on guarantees to be borne by EXPO 2000 - not by the taxpayer

The Supervisory Board of EXPO 2000 also approved a DM 400 million increase in the total volume of guarantees. This increase in the guarantee volume is intended to prevent the possibility of the organisers being faced with temporary financial constraints shortly prior to the opening of the World Exposition as a result of possible delays in the receipt of income from advance ticket sales. The federal and state governments had previously granted guarantees to the sum of DM 970 million, and this figure is now to be increased to a total of DM 1.77 billion. The costs of interest on the state-guaranteed loans is not to be borne by the taxpayer, but by EXPO 2000.

Following the resolution by the Supervisory Board, the shareholders' meeting, the cabinets and the budget committees of Germany's lower house of parliament (Bundestag) and Niedersachsen's state parliament will now look into the new financial plan of EXPO 2000 Hannover GmbH and the increase in the volume of guarantees.

The shareholders in EXPO 2000 Hannover GmbH are the Federal Republic of Germany (DM 40 million), the Land Niedersachsen (DM 30 million), the Beteiligungsgesellschaft der Deutschen Industrie (holding company of German industry) (DM 20 million), the City of Hannover (DM 6 million), the District of Hannover (DM 2 million) and the Greater Hannover Association (DM 2 million).

In 1995, the former German chancellor Helmut Kohl invited 185 countries and 9 international organisations to the World Exposition in Hannover. To date, positive responses have been received from more than 175 countries and international organisations.

For more information please contact:
EXPO2000 Hannover GmbH
Press department
Telefon (05 11) 84 04 - 777

DATE: 11/17/98

Marketplace
Books
Collectibles
Celebration Supplies
General Merchandise
Travel Packages