Aftenposten reports a Tromso 2018 Winter Olympic Games would be twice as expensive as previously thought according to an official report by three accounting and certification firms. The report could affect what little public and political support there already is for the bid.
Originally it was thought a Tromso Winter Olympics would cost about NOK 9.5 billion (nearly $2 billion U.S.). But the report from the two companies revealed the price of a Winter Games would be NOK 19.1 billion, requiring a state guarantee of NOK 28.6 billion.
The 259-page report was prepared by consultancy firm Norske Veritas, the Institute for Research in Economics and Business Administration and Advansia that specializes in complex construction projects.
Although the Games would cost almost NOK 29 million, ticket and sponsor income would reduce the net cost to just over NOK 19 billion, reports Aftenposten.
The huge gap between supporters of the bid and the auditors is explained by Tromso 2018’s failure to include costs for security, expected to be as much as NOK 1.5 billion.
Also costs for an Olympic Village were not considered because supporters said private developers would handle that. But according to International Olympic Committee (IOC) rules, athlete housing costs must be included in a state guarantee for financing.
Tove Paule, president of the Norwegian Olympic and Paralympic Committee and Confederation of Sports, attended the release of the report and said it would have to be reviewed carefully.
According to Aftenposten the high cost will make it difficult for most politicians to justify such an investment when many Norwegians are demanding better schools, nursing homes, health care and a variety of other services for which there is already not enough government funding.
The bid could be in trouble since public support for an Olympic Games in Tromso has been “lukewarm at best”, reports Aftenposten, and even athletic associations around the country have been sceptical. They are concerned the cost of an Olympics will shift financial resources away from their own needs, although they agreed this week to contribute almost NOK 650 million to the project.
