- GENERAL NEWS
Osaka 2025 Expo Venue Construction Now Seen to Cost ¥235 Billion
16:33 JST, October 21, 2023
OSAKA (Jiji Press) — The cost of building the venue for the 2025 World Exposition in Osaka is now expected to reach up to ¥235 billion, nearly 1.9 times the original estimate, it was learned Friday.
On the day, the Japan Association for the 2025 World Exposition informed the Japanese government, the Osaka prefectural and city governments and others of the new estimate.
It was the second time for the venue construction cost estimate to be increased, reflecting rising construction material and labor costs. The venue construction cost was first put at ¥125 billion, when Osaka was selected to host Expo 2025. It was raised to ¥185 billion in December 2020, partly due to the need to strengthen measures against summer heat.
The construction cost is set to be shared equally by the national government, the Osaka prefectural and city governments, and the business community.
At an online meeting on Friday, Hiroyuki Ishige, secretary-general of the association, asked for understanding for the increase of ¥50 billion in the venue construction cost.
According to Ishige, an additional ¥44.3 billion in material costs and ¥8.4 billion in labor costs are expected to be needed if the current rate of inflation continues. The association will also set aside ¥13 billion for contingencies.
Meanwhile, the association will cut costs by ¥15.7 billion by reviewing procurement methods and changing venue designs, Ishige stressed.
Osaka Gov. Hirofumi Yoshimura said he would not say at this time whether he would accept the second increase in the venue construction cost.
Industry minister Yasutoshi Nishimura said that the central government will scrutinize the cost increase, while noting that the cost-sharing scheme among the three parties should be maintained.
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