Shinji Inoue, the minister in charge of the World Expo 2025, announced Friday it will cost up to 185 billion yen to build venues for the Osaka-Kanssai world expo, 1.5 times the initial estimated cost of about 125 billion yen.
The announcement was made at a press conference held after Friday's Cabinet meeting.
The central government, the Osaka prefectural and municipal governments, and businesses will each shoulder one-third of the cost, which will be about 60 billion yen, up by about 20 billion yen from the initial estimate.
"We are in the middle of a severe economic situation because of the novel coronavirus crisis," Inoue said. "But it is our responsibility to make the expo an exciting event for the people."
He attributed the increase to soaring labor costs and other expenses, including building a device that will spray mist to combat the heat, among other expenditures to make the venues more comfortable and convenient for its visitors.
The government and other entities had estimated the construction cost for the venues in 2017 before the bid was launched. However, the Japan Association for the 2025 World Exposition, an organization that manages the expo, recalculated it because of concerns over rising labor and material costs as a result of a series of large-scale developments in Osaka City.
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