2010 World Cup costs overrun of 33 per cent: organizers

Africa News

Jul 9, 2008, 11:10 GMT

Johannesburg - Th cost overrun for 2010 World Cup stadium construction was likely to exceed 3 billion rand (384 million dollars), or one third of the budget, the South African organizing committee (LOC) confirmed on Wednesday. 'We think that is realistic but it could be 10 per cent higher (3.3 billion rand),' Danny Jordaan, chief executive of the LOC told a press briefing in Johannesburg, in response to weekend reports of a 3-billion-rand increase. The increase could bring the cost of building five new stadiums and upgrading five others to over 13 billion rand, nearly double the 6.7 billion rand budgeted by government when South Africa won the right to host the tournament back in 2004. The new estimates are also a significant increase on the 9.8 billion rand set aside by government for the stadiums in the last budget. Jordaan said the LOC was 'confident' of getting the extra money. Deputy Finance Minister Jabu Moleketi told City Press newspaper at the weekend the nine host cities would have to look not only to government but to the African Development Bank for low-interest loans to cover the increase. Jordaan said the overrun was typical of large tournaments and that rising global prices and a weak rand were fuelling the increase. Inflation in South Africa shot up to 10.9 per cent in May, far exceeding the 3-6 per cent target set by government, The rand has also fallen sharply against major currencies over the past year, on the back of growing political uncertainty in South Africa and shrinking growth. A weaker rand makes imported raw materials, such as the German roof that will crown the Soccer City stadium outside Johannesburg, where the opening and closing matches will be played, more expensive, Jordaan said.

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2010 World Cup costs overrun of 33 per cent: organizers

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