Exactly two years before the kick off, South Africa Local Organising Committee CEO Danny Jordaan had bad news for anyone thinking South Africa would bring the World Cup home on budget.

"We are presently dealing with cost escalation - a reality that will have an impact on us," Jordaan told a press conference yesterday.

"What the final figure is going to be, I do not know."

The main reason, but not the only one, for the rise in costs is linked to the cost of steel which is needed for the five new stadiums.

The price has dropped slightly since February but it is still much higher than 2006, when construction began.

The current cost projection of 9.8 billion rand (US$1.2 billion) was, according to Mr Jordaan, overly optimistic.