The Tokyo Olympic organizing committee estimates the total cost of hosting the 2020 Games at between ¥1.6 trillion and ¥1.8 trillion, people familiar with the matter said Saturday.
The central, Tokyo metropolitan and other governments will be asked to put up between ¥1.11 trillion and ¥1.34 trillion, with the new estimate to be presented to a meeting of a four-party working group scheduled for Wednesday.
Last month, the games organizers proposed slashing the estimated ¥3 trillion budget to under ¥2 trillion. But the IOC, having recently consulted with cities that abandoned their bids for the sporting spectacles over cost concerns, is calling for further cuts, with Vice President John Coates stating the IOC "can do much better" and "has not agreed to that amount of money (¥2 trillion)."
Coates said prospective host cities are watching what happens in Tokyo and must not get an incorrect impression of the costs involved.
An informed source said the operational costs of the games will be ¥820 billion, with the IOC covering half of that. Organizers will also foot ¥90 billion of the ¥330 billion bill for temporary facilities.
The original budget estimates during the 2013 bidding process totaled ¥734 billion, but excluded transport and security costs to be covered by the central and metropolitan governments because those were not required to be included by the IOC back then.
A metropolitan government investigation has since figured the actual cost of hosting the event could swell to ¥3 trillion.