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Russian Official Warns Of Massive Cost Overruns For Sochi 2014


Pavlenko said contractors have overpriced the cost of building infrastructure for the Sochi Olympic Games -- particularly athlete housing and roads -- by about 40 percent.

Pavlenko said contractors have overpriced the cost of building infrastructure for the Sochi Olympic Games -- particularly athlete housing and roads -- by about 40 percent.

A top Russian government official says that greedy contractors and sloppy management will likely make the 2014 Winter Olympics in Russia the most expensive in history.

Sergei Pavlenko, head of Russia's Federal Service of Financial and Budget Oversight, said the final price tag for the games in Sochi will be between $13 billion and $18 billion -- most of it to be paid by Russian taxpayers.

He said contractors have overpriced the cost of building infrastructure for the Sochi Olympic Games -- particularly athlete housing and roads -- by about 40 percent.

Pavlenko said initial cost estimates were a particular problem because work was approved at locations where the ground is too soft to support major buildings.

Final construction costs have risen because of the cost of reinforcements needed to prevent buildings from sinking into the ground.

compiled from agency reports
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