According to France’s Court of Audit, there was an “incomprehensible lack of understanding of the complexity of the IOC’s specifications,” which is why the 2024 Paris Olympics are running far over budget. In its most recent assessment, the court stated that the Paris bid committee ‘underestimated’ the expenses of hosting the Games at the time of the bid and cautioned that savings may be necessary before next summer. The report was handed to AFP on Wednesday.
“Further measures to reduce service levels will be required to ensure final budgetary equilibrium,” said the report adding that “substantial uncertainties remain concerning the final level of resources.” The paper also emphasized challenges in getting enough sponsorship, difficulties in calculating total costs, and delays in concluding development, notably of transportation infrastructure.
The organizing committee’s, or Cojo’s, budget, which was about 3.3 billion euros at the time of the winning bid in 2017, increased to 4.4 billion euros by the end of 2022. According to the report, “two-thirds” of the increase was caused by an obvious underestimation of the bid budget and an inexplicable failure to comprehend the complexity of the IOC’s (International Olympic Committee) specifications, rather than management drift or poorly thought-out changes to the project.
According to the report, Cojo “undertook transparent and rigorous” budget modifications for 2022, adding an additional 400 mn euros in part owing to inflation
According to the report, Cojo “undertook transparent and rigorous” budget modifications for 2022, adding an additional 400 million euros in part owing to inflation. The study was released shortly after French authorities raided Cojo, Solideo, the organization in charge of the Olympic construction sites, and other businesses connected to the Games. The searches on Tuesday and Wednesday were part of two preliminary investigations by the French National Financial Prosecutor’s Office into the contracts given for the Paris Olympics, a source familiar with the issue told AFP.
The audit report expressed concern about local sponsorship agreements, which are expected to deliver Cojo 1.24 billion euros, at the same time. The cooperation with (French luxury giant) LVMH, which was first announced for 140 million but has not yet been inked, must be completed, according to the report, as 337.2 million euros are still needed to be secured.
Because it was hard to determine a precise total figure, the report reaffirmed a request that “all costs” be “consolidated.” The court also voiced concern over Cojo’s inability to secure enough bidders for contracts involving private security. There is a genuine chance that multiple calls for tender may be unsuccessful, it stated, despite “the combined efforts of the Cojo, the State, and the professional sector.”
The report said, “Therefore, it is necessary to anticipate the now-probable recourse to internal security forces and the armed forces to make up for this shortfall.” The report expressed concern about ongoing problems with public transportation in the area as well as the late completion of metro train enhancements and extensions. “These infrastructure projects remain essential to ensure the smooth flow of traffic during the Games”, said the report. The report also urged Solideo to take “reinforcement measures” to ensure the completion of “certain structures affected by delays” such as the athletes’ village, media village, and at least one arena.
