Final Stretch for Paris Olympics Budget to Be Critical, CEO Says

(Bloomberg) — The budget for the Paris Olympics is so far under control, but the few months leading to the event will be critical to meet its cost goals, the CEO of the Games organizing committee says.

“So far we’ve been able to keep a relatively stable budget aligned with inflation,” Étienne Thobois, managing director of Paris 2024, said in a interview with Bloomberg TV on Thursday. “We still have some contingency available,” he added, saying “the last stretch is going to be very critical.”

The Paris 2024 bid has been built around a pledge to keep costs down by using 95% existing or temporary infrastructure. French Finance Minister Bruno Le Maire said he wants the Games to be the cheapest in decades, with the state on the hook for just a quarter of the cost of the 2 1/2 week event.

Read more: France Plans Cheapest Olympics in Decades for Taxpayers

If the organizers can keep to their pledge, it will mark a significant departure from a legacy of major cost overruns for Olympic hosts. The ‘Big O’ stadium in Montreal was quickly dubbed the Big Owe, as the budget for the 1976 Olympics ballooned by more than 700%.

The French state’s contribution to the Olympic Games will total €1.3 billion ($1.4 billion), mainly in outlays to improve infrastructure via SOLIDEO, the company that’s building venues and accommodation. It has a total budget of around €3.7 billion. The organizing committee’s budget of €4.4 billion will by 96% financed by the private sector.

Despite warnings that the Paris transportation system won’t be able to cope with getting spectators on time to events, Thobois is confident it won’t be a problem. “Summer time is 30% less traffic in Paris, and the Olympics traffic itself is an increase of 15%, so you can see that the capacity is there,” he said.

Paris Mayor Anne Hidalgo recently said that there was “lots of work” left to get the transportation system ready for the games.

As the opening ceremony is set to take place along the River Seine, drawing hundreds of thousands of spectators, Thobois said alternative scenarios could be considered. “We do have various planning to adapt for whatever situation comes at us,” he said.

Read more: At Paris Olympics, Iconic Landmarks Will Double as Venues

–With assistance from Anna Edwards and Tom Mackenzie.

©2024 Bloomberg L.P.