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However, Victorian Premier Daniel Andrews revealed that the figure had skyrocketed to more than Aus$7 billion (UGX 17.5 trillion), making it "well and truly too much" for the state to bear.
The Australian state of Victoria announced on Tuesday that it would no longer be hosting the 2026 Commonwealth Games due to unforeseen budget blowouts.
The decision has left organizers scrambling to salvage the multi-sport event, while the Commonwealth Games Federation (CGF) expressed its disappointment and commitment to finding a solution.
The initial estimated cost of hosting the Games was projected to be around Aus$2 billion (UGX 5.003 trillion).
However, Victorian Premier Daniel Andrews revealed that the figure had skyrocketed to more than Aus$7 billion (UGX 17.5 trillion), making it "well and truly too much" for the state to bear.
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10:10 - 17.07.2023
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Andrews emphasized that he would not divert funds from vital sectors like hospitals and schools to finance a sporting event that exceeded its budget by threefold.
"I've made a lot of very difficult decisions in this job. This is not one of them. Frankly, $7 billion for a sporting event, we are not doing that," Andrews told a press conference in Melbourne.
"I will not take money out of hospitals and schools to host an event that is three times the cost estimated and budgeted for last year.”
"The Games will not proceed in Victoria in 2026. We have informed Commonwealth Games authorities of our decision to seek to terminate the contract," he added.
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The event, featuring 20 sports and 26 disciplines, was scheduled to take place across five regional hubs in Victoria.
The hubs included Geelong, Ballarat, Bendigo, Gippsland, and Shepparton, with each hub having its own athletes' village.
Despite exploring alternatives such as reducing the number of hubs or relocating the Games to Melbourne, Andrews concluded that none of these options were viable.
Meanwhile, the Victorian state opposition criticized Andrews' decision, describing it as a "massive humiliation" and one that could be hugely damaging to Victoria's reputation as a global events leader.
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While Andrews stated that talks with the Commonwealth Games Federation had been amicable, the Federation expressed its disappointment with the decision.
In a statement, they highlighted that they had only been given eight hours' notice and had not been given the opportunity to jointly find solutions prior to the decision being reached by the government.
The Federation noted that the additional expenses incurred by Victoria were contrary to their advice and assurances given during the bidding process.
They also emphasized their commitment to finding a solution for the Games in 2026 that would be in the best interest of the athletes and the wider Commonwealth Sport Movement.
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With Victoria's withdrawal, the fate of the 2026 Commonwealth Games hangs in the balance, as fewer countries have shown interest in hosting the event in recent times.
The Games, which traditionally attract over 4,000 athletes from the 54 nations of the Commonwealth, face challenges in maintaining their relevance.
The last edition of the Games was held in 2022 in England after Birmingham stepped in as a replacement host.
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