Games infrastructure bill now $3 billion more than first estimates

A costing sheet sent to the Commonwealth in 2021 reveals the bill for Queensland’s Olympic and Paralympic Games venues has blown out by $3 billion since the Palaszczuk government’s first estimates.

The document, sent to the then Morrison government shortly after Brisbane secured the 2032 bid, showed Queensland believed all “non-transport infrastructure” could be built or upgraded for little more than $4 billion. The state was seeking to secure a 50-50 split.

On Friday, following months of negotiations and disagreements about how to carve up costs, the state and new Australian government merrily announced they had arrived at a $7 billion deal.

Premier Annastacia Palaszczuk after south-east Queensland was awarded the 2032 Games. Credit: Getty

Rebuilding the Gabba and its precinct would now cost $2.7 billion and be funded entirely by Queensland, they said. This was $1.7 billion more than what premier Annastacia Palaszczuk flagged fewer than two years ago.

The Commonwealth would then pay the $2.5 billion needed for the new 17,000-seat Brisbane Arena, while a further $1.9 billion would be split between the governments to fund multiple venues across the south-east corner.

Friday’s revised stadium bill moved the total Games budget to $11.5 billion (USD $7.85), which included $4.5 billion for operational costs such as wages, technology, transportation, administration, security, catering and ceremonies. This operational element was expected to be “cost neutral” once broadcast rights, ticketing and sponsorship materialised.

The Queensland Labor government expects the Games to deliver $8.1 billion in economic and social benefits to the state and $17.6 billion the nation, while reaching the eyeballs of more than 5 billion people across the world.

Transport and other infrastructure needed for the Games and Brisbane’s rapidly growing population would not be included in the final cost tally.

Asked about the 2021 costings, seen by this masthead, a State Development spokeswoman said they were only indicative. In addition, the price tags were in 2020 dollars and excluded the escalation in construction costs and supply chain constraints.

“Over the past 14 months, considerable work has been undertaken to further define scope, budget, schedule and project risks. New estimates include costs at the anticipated time of delivery,” the spokeswoman said.

In any case, modern Olympic and Paralympic Games rarely run to budget. A 2020 study by the University of Oxford, conducted before the Tokyo Games, concluded every Summer event since 1960 had an average overrun of 213 per cent, a figure disputed by the International Olympic Committee.

The study found final costs (excluding non-sport infrastructure and in 2015 US dollars) was $13.7 billion for Rio 2016, $15 billion for London 2012 and $6.8 billion for Beijing 2008.

The Queensland government emphasised new or upgraded venues would live on long after the Olympics, in line with the IOC’s so-called new norms – an approach seeking to ensure Games leave a lasting community benefit free of legacy-tarnishing white elephant infrastructure.

Swimming venue Brisbane Arena, for example, would utilise a drop in pool, which would be removed after the Games to allow for live events close to public transport, the governments said.

The Gabba was more controversial, coming at the expense of the historic East Brisbane Primary School. The Greens, staunchly against the development, flagged more protests despite promises the school would be reincarnated elsewhere.

In a positive for sports fans, the rebuild would provide a modern home to cricket (whose players and administrators have taken dim views of today’s facilities) and Australian Rules Football.

The government anticipated the new Gabba precinct would, in time, add 2000 new units, including social and affordable housing. And despite the tight inner-city footprint, it would not require a concourse over Stanley or Vulture streets.

The current venue contained 42,000 seats, but configurations for football and cricket meant the capacity was effectively 37,000 and 34,000, respectively.

The finished product would fit 50,000 people – 10,000 short of Perth’s new $1.8 billion Optus Stadium.