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Commonwealth bid city pulls out Commonwealth bid city to pull out
(20 minutes later)
One of the three cities vying to host the 2014 Commowealth Games has pulled out of the race, it has emerged. One of the three cities vying to host the 2014 Commowealth Games is set to pull out of the race, it has emerged.
The Canadian city of Halifax has dropped its bid, according to the Canadian Broadcasting Corporation. The Canadian city of Halifax and the province of Nova Scotia have withdrawn support from the bid due to concerns over a projected $1.7bn budget.
Politicians are understood to believe the budget is too high. The decision leaves two cities, Glasgow and Abuja in Nigeria, in the race. Without the backing of the two levels of government, the Halifax bid team is expected to drop out of the race.
Glasgow is expected to find out in the autumn whether it has been successful in its bid. That would leave two cities, Glasgow and Abuja in Nigeria, in the race. The winner will be announced this autumn.
Halifax announced its bid in March 2006.Halifax announced its bid in March 2006.
We will not jeopardise our fiscal position Peter KellyMayor of Halifax
However, reviews of the operating and capital costs revealed that the bid's budget had reached nearly $1.7bn - almost $1bn more than originally expected.
In a statement, Barry Barnet, minister of health promotion and protection, said: "We have said from the beginning that we would only support a bid that does not compromise the province's fiscal position, is the right size for Nova Scotia and leaves a lasting legacy for residents.
"I am personally extremely disappointed with this outcome but the results of the independent assessments and our own due diligence process are clear.
"The risks associated with pursuing the Games are simply too high."
Consultants analysed the potential legacy of a successful bid, as well as value for money, projected revenue and economic impact.
'Significant risks'
Their report found "a number of significant risks" of hosting the event, including a higher than anticipated need for public funding and insufficient contingency funding.
The statement said this could "leave the provincial government vulnerable in the event of cost over-runs".
The mayor of Halifax, Peter Kelly, said: "Our commitment has always been to the taxpayers of this municipality.
"We were hopeful we would be in a position to support the games but, given the concerns raised through the consultants' reports, we cannot support going forward.
"We will not jeopardise our fiscal position."