Tokyo Olympics organizers facing six-fold cost blowout: NHK

Sat Dec 19, 2015 1:20am EST
 
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TOKYO (Reuters) - The Tokyo Olympics 2020 will cost the host organizing committee six times more than their original estimate, and come in at around 1.8 trillion yen ($14.85 billion), public broadcaster NHK said on its website on Friday, citing people familiar with the matter.

The cost blow out was caused by unexpected payments for building lanes on highways, as well as rising materials costs and personnel expenses, said NHK.

The Tokyo 2020 Organizing Committee will be able to raise only about 450 billion yen from sponsors and ticket sales, which means a shortfall of more than 1 trillion yen, the report said.

The committee had earlier estimated a cost of 300 billion yen for the Summer Games in 2020, but that was optimistic, said NHK.

Total costs for staging the Tokyo Olympics, estimated to be more than 2.1 trillion yen, will be shared by the committee, the Tokyo government and national government.

(Reporting by Junko Fujita; Editing by Michael Perry)

 
Japan Sport Council officials look at a map as they survey the site where the new national stadium, the centrepiece of the Tokyo 2020 Olympics, is to be built in Tokyo, November 16, 2015. REUTERS/Thomas Peter