LOS ANGELES: Los Angeles 2028 Olympics chiefs on Tuesday unveiled details of the $6.9 billion budget for the Games, vowing to deliver the spectacle without cost overruns that have dogged recent editions of the extravaganza.
A statement from LA 2028 said the city’s Olympic plan, which relies entirely on pre-existing venues and infrastructure, included a 10 percent contingency fund of $615.9 million.
The $6.9 billion price tag is higher than the previous figure of $5.3 billion quoted during the bid process in 2017, which was calculated in 2016 dollar values.
The higher figure cited on Tuesday takes into account likely inflation over the next decade.
LA 2028 said the budget had been independently evaluated by accounting giants KPMG and had been computed in “real dollars to offer a clear picture of financial health over time.”
“Adjusted for inflation, LA 2028’s real dollar budget is directly in line with the budget proposed for the 2024 Games bid,” a statement said. The figure also factored in three percent, roughly $200 million, the bulk of which will be invested in local youth sports and four additional years of operation.
“Our budget is privately funded, realistic and fiscally conservative,” said LA 2028 chairman Casey Wasserman. “We are redefining what it means to host a successful Games and look forward to planning and hosting an amazing experience that will make our community proud.”
Los Angeles was awarded the 2028 Olympics in 2017 after an unprecedented joint bid announcement by the International Olympic Committee in Lima.
The Californian metropolis, which will be hosting the Olympics for a third time, had initially been bidding against Paris for the 2024 Olympics.
With a shrinking pool of cities willing to shoulder the financial burden of staging the Olympics however, the IOC sought to reward both cities in order to lock in two bids seen as equally strong.
LA 2028 on Tuesday reiterated the fact that the games will require “no complex and costly construction projects or Games-related public infrastructure”, areas which have been notorious for generating cost overruns in other Olympic cities.—AFP
