Interview: Jacques Hirtt Discusses Esch2022 Finances

Chronicle.lu recently got the opportunity to speak with Jacques Hirtt, Administrative and Financial Director of Esch2022 - European Capital of Culture, about the overall budget, income and expenses for the Esch2022 cultural extravaganza.

Chronicle.lu: What is the total budget for Esch2022?

Jacques Hirtt: The budget is approximately €54.8 million but we are talking about a global volume of €138 million, since there is another "external" budget on top of the association’s budget.

The city of Esch-sur-Alzette has, for example, invested substantially in new infrastructure such as the new art gallery, Konschthal, and others (around €30 million).

In addition, the Luxembourg State has invested additional budget in the infrastructure in Esch-Belval, e.g. the Möllerei, a place where major exhibitions are taking place.

Not to forget the financial expenditure for the new "Kabaisercher" (gîtes), new accommodations along the 90 km Minett Trails hiking trail by the participating municipalities or the Pro-Sud syndicate; who, by the way, also finance their own projects by at least 50%.

So, you can see, it`s an immensely big investment by many parties and a project that is much more than just a year or events.

Chronicle.lu: Please tell us where the funding comes from: is most of it from grants?

Jacques Hirtt: The €54.8 million [budget] is made up of €40 million from the [Luxembourg] State, €10.1 million from the city of Esch-sur-Alzette, €1.5 million received from the European Union (EU) thanks to the European label (Melina Mercouri Prize), the rest was generated from sponsorships: €1.3 million as cash funds and the rest is given “in kind”, and contributions by estimated amounts generated from ticketing [sales] and other [avenues], as well as financial support by the Ministry of the Environment, Climate and Sustainable Development for the Charte du development durable [Sustainable Development Charter] complete the budget.

Chronicle.lu: Is Esch2022 responsible for some revenue generation itself, i.e. is some income generated from ticket sales or other revenue streams?

Jacques Hirtt: Yes, we will generate some revenue ourselves from ticket sales, and we will sell some articles in a small souvenir shop, with an estimated amount of revenues around €400,000.

Chronicle.lu: Please outline the main areas of expenditure: are they per project or per event?

Jacques Hirtt: The main expenditure is per project and a project can then be split into several events; if you take the official opening ceremony of Esch2022 for example, the Remix Opening, this was also a real project, not just an event.

Chronicle.lu: What was the budget for Esch2022 REMIX OPENING on 26 February 2022?

Jacques Hirtt: The overall budget was approximately €2.5 million which includes the preparative projects held already in [autum] 2021 already by the Remix Festival; included in the budget are also all projects which have been part of the Opening e.g. the Future Frequencies workshops, long-term preparations, and as you say all event-related costs from musicians, security, technical and infrastructural costs, transport etc.

Chronicle.lu: How much of the expenses is covered by Esch2022 from each municipality?

Jacques Hirtt: The city of Esch-sur-Alzette has contributed around €10.1 million and in addition, finances around 50% of its own projects, as all other [municipalities] and project partners do in general, share half the costs.

The contributions of [the] municipalities vary, depending on the costs for their own projects, but they do not contribute directly into the Esch2022 association’s funds.

Chronicle.lu: Which municipalities are the major recipients of financial support?

Jacques Hirtt: We made sure that all municipalities are treated equally and overall receive similar financial support.

Chronicle.lu: Is there any financial support from the Main Partners, Supporting Partners and Institutional Partners? If so, how much was the support?

Jacques Hirtt: We were able to conclude partnerships worth €3.4 million. We have three “Main Partners”: BMW, Arcelor Mittal and Ferrero; and eight Supporting Partners: Accor, Bofferding, CFL, Luxair, Luxlait, Poll-Fabaire, TICE and POST.

Partnerships with Supporting Partners have a value of €200,000, per Main Partner we talk about a value of €600,000.

The support from the State, namely the Ministry of Culture, makes €40 million for the project of Esch2022; for single projects, there are additional supports, for example, the Ministry of Tourism, the Ministry of the Environment, Climate and Sustainable Development and the Ministry of Education, Children and Youth.

Chronicle.lu: How large is the financial team within the Esch2022 organisation and who has responsibility for what?

Jacques Hirtt: I am the Administrative & Financial Director of Esch2022 and take care of all financially-related topics with the support of Marie Dembski, executive assistant, and our external fiduciary partner. Besides that, I am responsible for Human Resources. Our Head of Partnerships is Anne-Catherine Richard.

Chronicle.lu: To whom is Esch2022 accountable financially? Are the accounts audited?

Jacques Hirtt: We are especially accountable to the government represented by the Ministry of Culture. And yes, the accounts are audited.