St. Petersburg to spend nearly $62 million on G20 summit

Russia, which is chairing the G20 in 2013, will spend around 215 million dollars organizing G20 events. The government has allocated around 62 million dollars for the upcoming G20 summit in St. Petersburg.

Russia, which is chairing the G20 in 2013, will spend around 7 billion rubles (around $215 million) organizing G20 events. The government has allocated around 2 billion rubles ($62 million) for the upcoming G20 summit in St. Petersburg. These figures were obtained from SPARK Marketing and the government orders portal zakupki.gov.ru.

Around 5 billion rubles ($153 million) will be spent on all the other events being held in 2013, which are all being organized by tour operator Interconnect Management Corporation.

Summit in Strelna

The G20 heads of state will meet in Strelna, outside St. Petersburg, in September. Much of the cost of the event will be allocated to building and equipping temporary constructions and to ensuring communications and TV broadcasting.

Russia will spend 347.8 million rubles ($11.6 million) on furniture for the main events. Building and dismantling of structures for the summit will cost 294.1 million rubles ($9 million). Both orders were placed with one company - the state-owned Production Supply Enterprise.

Another 88 million rubles ($2.7 million) will be spent on energy supply for the temporary constructions. Production Supply Enterprise has made an order worth 86.3 million rubles ($2.6 million) for energy supply equipment.

Production Supply Enterprise has also ordered the installation and assembly of temporary constructions for the international press center at a starting price of 340 million rubles ($10.4 million). Another 30.7 million rubles ($940,500) will be spent on lighting and electricity for the press center.

The enterprise has also announced a tender for a data transfer and telephony supplier worth 306.6 million rubles ($9.4 million). This amount includes supply and maintenance of software and hardware systems and television broadcasting equipment.

Transport services for the federal employees organizing the summit will cost 34.2 million rubles ($1.05 million).

Around 1 mllion rubles (about $30,600) will be spent on stationery, paper and small office equipment (LLC Omega won the supply tender. Floral productions will be supplied by Production Supply Enterprise at a cost of 3.8 million rubles ($116,400).

The cost of the summit may increase because there could be some more orders in the future. Indirect spending, such as the construction of a road from Pulkovo Airport to the ring road, reducing the distance to Strelna, is not included in the estimate.

Expensive presidency

Other events outside the main summit will cost around 5 billion rubles ($153 million): 164.9 million rubles ($5 million) in 2012 and 4.8 billion ($147 million) in 2013. The contract to organize and carry out the events linked to Russia's presidency of the G20 in 2012 and 2013 was signed with one company - CJSC Interconnect Management Corporation.

The Russian Tour Operators Association says on its website that Interconnect has been involved in business tourism and the organization of corporate events since 1992. It is an official partner of the state owned President Hotel. The SPARK Interfax database shows the company is owned by Bizev Vasily Fyodorovich.

The government orders website does not disclose documentation for the order.

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