2010 costs rise

17 March 2008

Construction costs for the 2010 soccer World Cup could be as much as ZAR 3.4 billion (US$ 485 million) over budget, according to deputy finance minister Jabu Moleketi. Unspecified “cost escalations” were blamed, and Mr Moleketi admitted that when budgets were originally set, up to 60% of the cost of stadium construction and refurbishment were provisional estimates.

South Africa had originally put aside ZAR 17.4 billion (US$ 2.5 billion) for the construction work associated with the World Cup.

This was divided into ZAR 8.4 billion (US$ 1.2 billion) to build and refurbish stadiums, and ZAR 9 billion (US$ 1.3 billion) for supporting infrastructure.

Commenting on the over-runs, Mr Moleketi said, “By mid-December we are hoping to have a clear idea of the escalation of inputs. It is only at that point when we will take a view on how to deal with the escalation.”

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