I am publishing today the Government Olympic Executive’s Quarterly Report - London 2012 Olympic and Paralympic Games Quarterly Report July 2011. This report explains the latest budget position as at 30 June 2011, and outlines some of the many wider economic and social benefits to the UK.
The overall Public Sector Funding Package (PSFP) for the Games remains at £9.298bn. As reported in the Annual Report in February this year, the breakdown of the funding package altered from April 2011 reflecting the changing focus of the programme from construction to the operational delivery of the Games. We continue to seek value for money and cost savings in our day-to-day running of the project. The ODA has also achieved additional significant savings in the quarter and, with just over a year to go to the 2012 Games, the Anticipated Final Cost (AFC), which is the current forecast of the final cost of the ODA’s programme, including risks, scope changes and inflation is £7.250bn, compared to £7.266bn at the end of March 2011, a total decrease of £16m.
In the last quarter £1.5m was released from the PSFP to support crowd management and public safety at the sailing venue in Weymouth. An additional £0.8m was also released to dress two venues outside London and expand the installation of Olympic rings and Paralympic Agitos on buildings in the UK, while £3.1m was released for a small number of additional events as part of the London 2012 Festival.
Throughout the Big Build, the ODA has made strong progress in preparing the venues and infrastructure at the Olympic Park with 88 per cent of the Games-time construction programme now completed and in many cases ahead of schedule. Completed venues now include the Velodrome, the main Stadium (running track to be laid later this year), the Handball Arena, the Basketball Arena and the International Broadcast Centre (IBC). Construction works are nearing completion on the Aquatics Centre which remains on track to be finished by 27 July 2011 - one year to go until the opening ceremony of the London 2012 Olympic Games. The venue will be unveiled by the ODA to mark one year to go.
The London 2012 Olympic and Paralympic Games are continuing to help businesses and people through the difficult economic times. The Games are also benefitting those living in the host boroughs, with nearly 25 per cent of those working on the Park hailing from the surrounding area. Currently, over 40,000 people have experienced work on the Olympic Park and Athlete’s Village since April 2008. More than 98 per cent of the ODA’s suppliers are based in the UK whether they be supplying the official merchandise for London 2012 or supplying the rain-screen cladding on the Olympic Stadium. Smaller businesses have also had the chance to share in the success of the Games with 73 per cent of CompeteFor contracts awarded to SMEs.
The Games are also supporting the Government’s Plan for Growth, by providing unique opportunities for business across the UK to grow internationally. UK Trade & Investment (UKTI) is enabling this through the Host 2 Host programme which seeks to maximise the economic benefits of hosting the London 2012 Olympic and Paralympics Games. The programme allows business to created links and share best practice with previous and future host cities of Olympic Games and other major sporting events.
I would like to commend this report to the members of both Houses and thank them for their continued interest in and support for the London 2012 Games.
Copies of the Quarterly Report July 2011 are available online at the DCMS website and will be deposited in the libraries of both Houses.