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London 2012 Olympics on budget despite costs rise

BBC Published May 27, 2010 Reviewed Jul 2, 2026 ✓ Reviewed by citations.press editors

Expected final costs for the 2012 Olympic build have increased by £5 million.

5 £ · expected final costs Olympic Delivery Authority, report

John Armitt stated that £600 million has been saved to date on the Olympic project.

600 £ · savings to date John Armitt, ODA chair

Hugh Robertson warned the project may need to request more money from the Treasury in 18 months.

18 months · time until Treasury request Hugh Robertson, Sport and Olympics Minister

David Higgins said the ODA could achieve £27 million of savings required by the government as part of £88 million of cuts to the Department of Culture, Media and Sport.

27 £ · savings called for by the Government88 £ · cuts announced to the Department of Culture, Media and Sport David Higgins, ODA chief executive

There is £1.2 billion of contingency funding remaining and 65 % of venues and infrastructure are already completed.

1.2 £bn · contingency left65 % · venues and infrastructure completed

Expected final costs have increased by £5 million.

5 million pounds · expected final costs Olympic Delivery Authority, report

The ODA can achieve £27 million in savings as part of £88 million in cuts announced this week.

27 million pounds · savings88 million pounds · cuts David Higgins, ODA chief executive

The ODA has saved £600 million to date.

600 million pounds · savings John Armitt, ODA chair

ODA had saved £600 million to date since the start of the project.

600000000 GBP · cumulative savings by ODA since project start John Armitt, ODA chair

Tessa Jowell said the mayor of São Paulo is interested in buying the temporary basketball arena for the 2016 Olympics.

2016 · next Olympics Tessa Jowell, former Olympics minister

A report by the Olympic Delivery Authority stated that expected final costs for the Olympic build and infrastructure have risen by £5m.

5000000 GBP · expected final costs Olympic Delivery Authority, organisation

Sport and Olympics Minister Hugh Robertson stated that going back to the Treasury for more money would happen in 18 months if contingency was surrendered.

18 months · time to go back to Treasury Hugh Robertson, Sport and Olympics Minister

ODA chief executive David Higgins stated that the organisation could achieve £27m in savings, which is part of the £88m in cuts announced for the Department of Culture, Media and Sport.

27000000 GBP · savings ODA could make88000000 GBP · cuts to Department of Culture, Media and Sport David Higgins, ODA chief executive

ODA chair John Armitt stated that the ODA has saved £600 million to date on the project.

600000000 GBP · savings John Armitt, ODA chair

Former Olympics minister Tessa Jowell revealed that the next Olympics are scheduled for 2016.

2016 year · next Olympics Tessa Jowell, former Olympics minister

There is £1.2 billion of contingency left and 65% of venues and infrastructure completed.

1.2 billion pounds · contingency left65 % · venues and infrastructure completed

The next Olympics will be held in 2016.

2016 · next Olympics Tessa Jowell, former Olympics minister

The project may need to request additional funds 18 months after surrendering contingency.

18 months · timeframe to request more money Hugh Robertson, Sport and Olympics Minister

Anticipated costs for the 2012 Olympic build and infrastructure have risen but the project remains on time and budget, a report has said.

Figures reveal that expected final costs have gone up by £5m, a report by the Olympic Delivery Authority said.

The increase was blamed on transport and infrastructure for the Olympic Village and Stratford City.

The government said it would not use the contingency fund and described the projected budget as stable.

Sport and Olympics Minister Hugh Robertson said: "My suspicion is that this will now become less a contingency for construction and more a contingency fund for the wider project."

Currently, there is £1.2bn of the contingency left with 65% of the venues and infrastructure for the London 2012 Games already completed.

Mr Robertson said the scope of the project "was changing in front of our eyes" and added that further challenges awaited.

He added: "The most damaging thing for the project would be to surrender contingency now and then have to go back to Treasury in 18 months and say 'we need some more money'."

ODA chief executive David Higgins said the organisation could make the £27m of savings called for by the Government as part of the £88m of cuts announced this week to the Department of Culture, Media and Sport.

ODA chair John Armitt said: "This report shows that the project continues to be on time and within budget.

"The ODA has worked hard to make considerable savings since the start of the project with £600 million saved to date to keep us on track."

Meanwhile former Olympics minister Tessa Jowell has revealed that the mayor of Sao Paulo has registered an interest in buying London's temporary basketball arena in time for the next Olympics in 2016.

She said: "London's basketball arena may have a second life in Sao Paulo."

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