TOKYO (AP) -- Zaha Hadid Architects will not enter the competition to design and deliver a new National Stadium for the 2020 Tokyo Olympics.
The company had intended to enter the competition even after its original design was chosen and later scrapped as its cost was estimated to be over 250 billion yen ($2 billion).
The government has begun accepting new bids for the national stadium project, with a cost ceiling of 155 billion yen ($1.3 billion).
Zaha Hadid Architects had planned to team up with major Japanese design and engineering company Nikken Sekkei in a bid to regain the project.
But the two firms were unable to secure a construction company and announced they will not enter the competition.
"It is disappointing that the two years of work and investment in the existing design for a new National Stadium for Japan cannot be further developed to meet the new brief through the new design competition," Zaha Hadid Architects said in a statement.
The government and Tokyo Olympic organizers favored the original design as a potential new landmark for the city, but a huge and growing public debt led many to question the costs of such massive public works projects.
Shortages of construction workers and rising costs for materials are also potential problems for contractors who will have to rush to meet the International Olympic Committee's request that the stadium be ready by early 2020.