1
PRETORIA — Stadium construction costs for the 2010 World Cup are expected to exceed budgets by US$253 million, the South African government said Wednesday.
Deputy finance minister Jabu Moloketi said increases in the price of oil and steel as well as fluctuations in exchange rates had pushed costs up.
Moloketi said $1.2 billion had been allocated for stadium construction and renovation. The government and the host cities would have to share the additional costs, he said.
The government was meeting with financial institutions, including the Development Bank of South Africa, to secure additional funding.
Related Articles
The cost of hosting the tournament is expected to exceed $3.8 billion, mainly because of escalating construction prices.
When the government bid to host the football showcase, estimates made in 2004 for the cost of hosting the tournament were as little as $380 million.
But plans have become more ambitious since then, with new stadiums being built in Durban and Cape Town.
The government has also decided to use the event as a catalyst for massive spending on badly needed transport infrastructure, as well as beefing up telecommunications, police numbers and equipment.
Moloketi said infrastructure projects were on track to meet deadlines ahead of next year's Confederation Cup.
"Quite clearly South Africa is indeed ready," Moloketi said. "We have covered a lot of ground."
