2020 Tokyo Olympics to cost $13-15 billion

TOKYO (AP) — Organizers of the Tokyo Olympics estimate the total cost of hosting the 2020 Games will be between 1.6 and 1.8 trillion yen ($13-$15 billion).

The official cost estimate announced today was below the promised 2 trillion ($17 billion) cap, while organizers said they will try to come down further.

“This is Version 1,” said Toshiro Muto, chief executive officer of the organizing committee. “We will continue our cost-cutting effort toward our Version 2.”

Details of cost-sharing among the three parties — the organizing committee, Tokyo and central governments — can be now worked out, Muto said.

The cost estimate includes 590 billion yen ($5.5 billion) to build permanent and temporary venues and other facilities, and 410 billion yen ($3.8 billion) for “soft” costs such as transportation, security and other operational expenses. It takes into account 500 billion yen ($4.7 billion) of revenue from sponsorship, ticket sales, licensing and IOC contributions.