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London 2012 Olympics budget remains stable
(Agencies)
Updated: 2007-12-11 10:04

 

LONDON - Although extra contingency money will be allocated for security at the London 2012 Olympics, the overall budget has not gone above the 9.3 billion pounds ($18.97 billion) announced in March, the government said on Monday.

Olympics Minister Tessa Jowell confirmed an additional 238 million pounds of contingency money would be set aside for security during the Games in London's East End on top of the 600 million pounds announced in March.

The government released the figures as part of its most detailed financial breakdown of costs, following a request in July by the financial watchdog, the National Audit Office (NDA), to draw up a detailed plan for controlling the budget.

The baseline budget, to be met by the public sector funding package, remains at 6.1 billion pounds, including tax but excluding a contingency pot of two billion pounds, with the total government funding package still at 9.325 billion pounds, said Jowell.

"The budget is consistent with the funding package I outlined in March," she said in a statement to the House of Commons.

"Months of careful scrutiny have confirmed the Olympic Delivery Authority (ODA) has the money it needs to deliver the venues and infrastructure for a terrific summer of sport, as well as leaving a long-term legacy for one of the most deprived parts of the country."

The contingency was confirmed as enough to cover the risks at both project and overall levels, she said.

However, the financial update showed the ODA, which oversees construction of Olympic venues and infrastructure, had been given all the 500 million pounds earmarked for initial contingency to cover costs on early projects.

Non-ODA costs, including the Paralympic Games, are expected to come to 1.2 billion pounds.

TALKS CONTINUE

The cost of some individual projects, such as the aquatics centre, have yet to be published as talks with potential contractors are still continuing.

However, the breakdown showed 1.94 billion pounds would be spent on the preparation and infrastructure of the site.

The main Olympic stadium was still priced at 496 million pounds, with other Olympic Park venues costing 574 million pounds. Non-Olympic park venues were estimated to cost 101 million pounds.

Transport improvements will cost a total of 897 million pounds.

Other projects at the site, including logistics for site construction and security, will reach 868 million pounds. The government is forecast to contribute 492 million pounds towards the cost of the broadcast and media centres and Olympic village.

Corporation tax and interest is expected to be 73 million pounds.

Hugh Robertson, Shadow Olympics Minister, said: "Today's statement establishes a welcome initial baseline but falls far short of the full and open budget we had been seeking."

He called for pricing of the Games' legacy, a breakdown of the contingency and publication of monthly cash flows.

Some observers have criticised Jowell for her handling of the budget which has risen sharply from the 2004 bid book cost.

A number of parliamentary committees, including the Culture, Media and Sport Committee last week, have voiced concerns over financial monitoring and preparations for the event.

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