The London 2012 Olympic and Paralympic Games is on track to be delivered on time and under budget.
The overall funding package for the Games remains at £9.298 billion with £476 million of uncommitted contingency available, figures from the Government’s last quarterly economic report before the Games show.
The anticipated final cost of the Olympic Delivery Authority’s (ODA) construction and transport programme is £6.761 billion - a decrease of £16 million on the previous quarter. Savings made by the ODA up to 31 May this year have now topped the billion pound mark in total, reaching £1.004 billion.
Secretary of State for Culture Olympics Media and Sport, Jeremy Hunt said: “With only 44 days to go before the Olympics it is fantastic news that there is still £476 million of contingency funds left. Britain has proved that not only can we put on a great show for the world to watch like we did with the Jubilee but that we can also deliver big construction projects on time and on budget.”
Minister for Sport and the Olympics Hugh Robertson said: “With a matter of weeks to go until London 2012 we are in a strong place. The transformation of the previously contaminated land into the Olympic Park on time and under budget is a great success story for UK plc. I would like to thank all those who have worked so hard to deliver this project in such an exemplary manner. We can now look forward to a summer of sport built upon the firm foundations set down by the ODA, LOCOG and everyone else involved in the project.”
Dennis Hone, Chief Executive of the Olympic Delivery Authority, said: “Our marathon task of building an Olympic Park fit for champions is almost at an end. The finish line is in sight but we have still got work to do, supporting the London Organising Committee in the next month and during the Games. The finishing touches are being put to this stage for the world’s best athletes - but we want the audience to be thrilled too: not just the spectators this summer, but the people who will live, work and play in the Olympic Park for decades to come.”
The Olympic Park and Village were transferred from the ODA to LOCOG in January, to allow them to prepare the venues for staging the Games. Funding made available to LOCOG has increased by £29m in the quarter, as a result of these transfers from the ODA, and for additional infrastructure works.
Additional funding of £19 million has also been made available to improve crowd management and public information in central London and the ‘last mile’ - the distance between transport hubs and Games venues. This will include additional stewards and crowd flow measures.
The remaining balance of contingency within the public sector funding package now stands at £388 million, with an additional £88 million available to the ODA in programme contingency to cover assessed risks (both ahead of the Games and for post-Games work). In total, this leaves £476 million of uncommitted contingency remaining.
The change to the ODA’s anticipated final cost is due to a number of factors, including:
- A reduction of £14 million in the assessed programme contingency required to meet remaining risks.
- An increase of £12 million on structures, bridges and highways due to a combination of additional works and additional costs on contractual close out.
- An increase of £11 million on the Village construction costs reflecting potential increased costs in the contractual close out process, including a potential £5m increase in the retrofit costs post-Games. An increase of £3m on the International Broadcast Centre/Main Press Centre also reflects close out cost pressures.
- A reduction of £8 million in programme delivery costs due to savings achieved on the costs of CLM and a potential reduction in IT costs.
The Olympic Delivery Authority’s programme is now 98 per cent complete, but it will not reach 100 per cent until after the Games when its work will include the transformation of apartments in the Olympic Village into thousands of new homes, removing partitions and fitting kitchens.
Notes to Editors
This report covers the period 1 January 2012 to 31 March 2012 - with the exception of the uncommitted contingency fund figures which include adjustments for the additional funding released in the period up to 31 May 2012, reflecting that this is the final report before the Games.
The public sector funding package for the Games announced in March 2007 was £9.325 billion. On 24 May 2010, the Government announced that it would be reduced by £27 million to £9.298 billion.
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