SOCHI, August 14 (RIA Novosti) - A state Olympic corporation will be set up to build sports facilities and infrastructure in Sochi, chosen to host the 2014 Olympics, Russia's economics minister said Tuesday.

In early July at a session in Guatemala the International Olympic Committee selected a bid from Sochi, a Russian resort city on the Black Sea, to host the 2014 Winter Olympic Games in a close race with South Korea's Pyeongchang and Austria's Salzburg.

"All the construction works will be carried out by the Olympic state corporation," German Gref said in Sochi, adding that the corporation would be formed in November-December this year and a new law would regulate its activity.

The minister said that the implementation of the federal targeted program to develop Sochi between 2006 and 2014, which has a $12 billion budget, is being conducted in line with the project schedule.

As of August 1, Gref said, the cost of the budget program for the games totaled 2.4 billion rubles ($94.2 million) with one billion rubles ($39.3 million) allocated from the federal budget and 1.4 billion rubles ($55 million) from other sources.

The Winter Olympics will be held in Russia for the first time in its history, although Moscow hosted the Summer Olympics in 1980, but the event was marred when over 60 countries boycotted the event in the capital of Russia.