Some €23 billion in contracts will be put out to tender in the run up to the 2008 Olympics in China

Irish companies are being urged to look east to cash in on the $20 billion (€22.7 billion) in construction and service contracts that will be on offer in China in the run up to the 2008 Beijing Olympics.

Most Olympic-related projects will be put out to international tender, it was announced this week, and a relaxation in regulations governing foreign joint ventures following China's entry to the World Trade Organisation (WTO) will make it easier for western companies to line up for a slice of the Olympic action.

Apart from big infrastructure projects such as roads and stadium developments, there will be opportunities in other sectors in the lead up to the games. This Olympics promises to be one of the most technologically advanced yet and there will be a great demand for IT services such as call centres, electronic ticket management and smart-card technology.

For example, in the IT area, the Beijing Olympic Committee is looking for a portable gadget that can do instantaneous interpretation to overcome language barriers.

Already, leading Irish software company Iona Technologies has landed the contract to design the software programme for a state-of-the-art traffic management system to be introduced in the Chinese capital in the build up to the games. The Iona product will enable traffic lights in the city to change automatically according to the traffic demands at any stage during the day.

Opportunities will also emerge in the environmental, services and licensing sectors. The Olympic organisers promise this will be a "green" Olympics and a major "green belt" is to be developed around the city to help fend off the impact of sand storms, which have been increasing in recent years.

Licensed products carrying emblems and mascots of the games are historically popular around the world, and manufacturers will be sought to produce official Olympic products, a spokesperson for the Olympic committee told The Irish Times.

Bids for the design and construction of Olympic gymnasiums and stadiums will be invited from late next year and companies are advised to adopt a pro-active approach in monitoring developments and liaising with the Beijing Olympic Games Organising Committee.

The tendering process has already started for the design of the Olympic Park and a sports and culture centre. The deadline for the tender is July 2nd and the Olympic committee has promised "fair global competition" in the deliberation process.

The eyes and ears for Irish companies will be State agency Enterprise Ireland, which has an office in Beijing.

According to Enterprise Ireland's Asia-Pacific director, Mr Michael Garvey, there are potentially huge opportunities for Irish companies in the run up to 2008.

To this end, Enterprise Ireland is bringing two China-based business construction consultants to the Republic in May to speak to Irish companies about the Olympic openings and opportunities. This will be followed later in the summer by the first Irish design project management and construction trade mission to China.

"This trade mission will be especially geared towards showing Irish companies what opportunities there will be in Beijing with the games. I think it is possible for Irish firms to get involved, especially with China's accession to WTO and the relaxation of rules governing foreign companies. In fact, I think the Olympics will be a big test case in relation to seeing WTO rules operating," says Mr Garvey.

However, he warns that it will be important for Irish companies to get a foothold in China in advance of trying to get Olympic project work.

"There will be difficulties for Irish companies who don't already have a presence in the market. My advice to companies is to get a link here now."

Enterprise Ireland provides an advisory service to Irish companies on various project tenders in China and this service will be upgraded to include information on Olympic tender bids in the coming months as the Olympic Committee gets into full gear with its development plans.

Last week the vice-mayor of Beijing, Mr Liu Jingmin, unveiled a three-point Olympic action plan promising "Green games, high-tech games and people's games".

Beijing will spend $3.4 billion on stadiums and supporting facilities. A total of 37 stadiums will be needed for the games, 19 of which will be built from scratch. Thirteen existing stadiums in Beijing will be upgraded.

The city will also build 59 training centres and back-up facilities such as the Olympic Village, press centre and broadcasting centre.

The next five years will see the transformation of the city's transport network. Currently there are 1.7 million cars in Beijing and this is expected to increase by 100,000 annually.

To ease pressure on the already choking city streets, railway traffic will be developed and will be the main force in future transportation. The Olympic Committee pledge that, by 2008, it will take athletes no more than half an hour to get from the Olympic village to any of the stadiums where events will be held.

The Beijing Urban Light Rail is to be developed, with new lines being built including an express railway linking the Beijing Capital International Airport.

By 2008, subway lines will be extended by 148.5 kilometres to a total length of 202 kilometres. The future subway is expected to carry 10 per cent of the daily commuter traffic.

Many foreign companies are advised to form partnerships with local companies to bid for the 2008 Beijing Olympic infrastructure projects.

But, in a country where corruption is rife and connections in business mean everything, fears have been expressed that contract tendering will not be fair and that lucrative projects will be awarded to companies that have contacts with the Communist Party. There were reports this week, for instance, that Hong Kong businessmen will use their close ties with Beijing to secure projects.

To ease such fears, the mayor of Beijing, Mr Liu Qi, has announced the establishment of an independent audit group to monitor bids for the $20 billion in projects. The supervisory board is to ensure that business practices follow international standards and that information on project specifications and construction finances is made explicit and public.

While the establishment of the group has been welcomed, the plan is to select its 21 members from Beijing and central government departments. There will be no members from outside China to ensure its independence and credibility.

An Olympic Committee spokesman stressed that procedures will be fair and firms from anywhere in the world, including Irish companies, may bid for Olympic contracts.

"Chinese companies will not be able to provide everything required for the 2008 games and we will be looking to international firms that can provide expertise not widely available here."