APPENDIX 2—ADDITIONAL CONTINGENT
CALCULATION
This table illustrates the potential financial
risk, in addition to the contingencies already identified, should
the various project criteria fail to be implemented adequately
or on time. We believe that this represents the worst case scenario
but that this should be recognised as a very real risk.
| Criteria | Risk
| Financial Consequence | Additional Contingency Required
|
| Sponsorship | Content is insufficient to ensure full sponsor commitment, particularly if the national programme is cut, sponsors lose confidence in the project or take up other sponsor opportunities for the Millennium which are more fully defined
| Only £100 million raised | £75 million
|
| Visitor numbers | Content is insufficient to attract projected visitor numbers, demand management fails to divert peak demand visitors to off peak, ticketing systems create frustrated demand, marketing fails to attract the forecast mix of visitors
| Eight million visitors at an average ticket price 75 per cent of that forecast by MCL plus consequent reduction in catering and retail spend
| £47 million |
| Total | |
| £122 million |
|
