By Nick Mulvenney

BEIJING, Jan 10 (Reuters) Beijing is confident the companies contracted to build the venues for the 2008 Olympic Games will deliver on their commitments despite rising costs, officials said today.

With 20 months to go until the opening ceremony, the BEIJING, Jan 10 (Reuters) Beijing is confident the companies contracted to build the venues for the 2008 Olympic Games will deliver on their commitments despite rising costs, officials said today.

With 20 months to go until the opening ceremony, the $2 billion project to build or renovate the 31 venues for the Games remains on course with all scheduled for delivery by the end of the year, they said.

Xu Bo, the general director of ''Project 2008'' office, admitted, however, that rising costs were a problem for some companies in what was a ''critical year'' for Olympic construction.

''We are strengthening the supervision and regulation in terms of the venue construction here in Beijing,'' Xu said. ''We have some constructors who have had some difficulty controlling the costs.

''The actual expenses are a little bit higher than they expected at the very beginning of the bidding. So therefore we keep a close watch on the latest news in this regard.

''But basically we have confidence because at the very beginning we selected constructors who were large or mid-sized companies with a very professional capacity to fulfil the projects.

''Therefore we don't have any worries in this regard.'' Xu said work was being done on writing national legislation to control expenses.

''Beijing has introduced a market economy, therefore it's natural there will be risks but the companies have their own ethics and professional capacity to fulfil the contracts,'' he added.

SALARY CONCERNS Beijing authorities have already got involved to try and ensure that wages are paid by sub-contractors to the 30,000 migrant workers involved in venue construction.

''There is great concern about this issue, construction projects have been inspected to check whether salaries have been paid or not,'' said Sui Zhenjiang, director of the Beijing Municipal Construction Commission.

''There were some problems and for such problems we have this mechanism and we have already dealt with them,'' he added.

''After our investigations we have suspended the projects involving those 12 or 13 sub-contractors.'' Sui again denied reports that Beijing planned to send the million migrant workers out of the city during the Games and said whether they stayed depended on their companies.

''It's up to their corporations,'' he said. ''If the corporations has more work in Beijing they may stay, if not, they will go home.'' Xu said there were plans to improve the living conditions for the migrant workers involved in the projects.

REUTERS PDS HT1705 billion project to build or renovate the 31 venues for the Games remains on course with all scheduled for delivery by the end of the year, they said.

Xu Bo, the general director of ''Project 2008'' office, admitted, however, that rising costs were a problem for some companies in what was a ''critical year'' for Olympic construction.

''We are strengthening the supervision and regulation in terms of the venue construction here in Beijing,'' Xu said. ''We have some constructors who have had some difficulty controlling the costs.

''The actual expenses are a little bit higher than they expected at the very beginning of the bidding. So therefore we keep a close watch on the latest news in this regard.

''But basically we have confidence because at the very beginning we selected constructors who were large or mid-sized companies with a very professional capacity to fulfil the projects.

''Therefore we don't have any worries in this regard.'' Xu said work was being done on writing national legislation to control expenses.

''Beijing has introduced a market economy, therefore it's natural there will be risks but the companies have their own ethics and professional capacity to fulfil the contracts,'' he added.

SALARY CONCERNS Beijing authorities have already got involved to try and ensure that wages are paid by sub-contractors to the 30,000 migrant workers involved in venue construction.

''There is great concern about this issue, construction projects have been inspected to check whether salaries have been paid or not,'' said Sui Zhenjiang, director of the Beijing Municipal Construction Commission.

''There were some problems and for such problems we have this mechanism and we have already dealt with them,'' he added.

''After our investigations we have suspended the projects involving those 12 or 13 sub-contractors.'' Sui again denied reports that Beijing planned to send the million migrant workers out of the city during the Games and said whether they stayed depended on their companies.

''It's up to their corporations,'' he said. ''If the corporations has more work in Beijing they may stay, if not, they will go home.'' Xu said there were plans to improve the living conditions for the migrant workers involved in the projects.

REUTERS PDS HT1705