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Government - Olympic budget stabilised

The Government has completed its detailed budget breakdown for the 2012 Olympic Games, and construction costs have stabilised at the level announced in March.

Baseline coasts for the games remain at £6.090bn, as part of a total package of £9.325bn, £8.099bn for the public sector, although security costs have increased.

In a written statement, Tessa Jowell said: "The ODA has completed a detailed project by project analysis of its scope, costs, programme and risks, to assess the total projected cost of their programme of works for the Games and for legacy transformation.

"This has confirmed that the base cost, excluding general programme contingency, is £6.090bn, the same as the ODA budget within the announcement in March 2007 of a total Government funding package of £9.325bn."

The contingency fund for the project remains very large, at more than £2bn, split into an ODA, and non-ODA portion. "As a result of this further work and recent decisions, there still remains £2.009bn of contingency.

"This contingency includes provision against known programme-wide risks, and against risks that are outside the ODA's control. The programme-wide risks, and other risks outside the ODA's control, have been assessed and quantified and the contingency available has been confirmed as sufficient to cover such risks."

The non-ODA contingency is £238M. Contingency fund cash will be allocated on a case-by-case basis.

Total gross costs are:

Site Preparation and Infrastructure:

Powerlines £282M, Utilities £255M, Enabling works £364M, Structures, Bridges, Highways £830M, Contribution to Prescott Lock upgrade £5M, Other infrastructure (Greenway, Landscaping £206M.

Total Site Preparation and Infrastructure £1.942bn.

Venues:

Stadium £496M, Other Olympic Park Venues £574M, Non Olympic Park Venues £101M.

Total Venues £1.171bn.

Transport:

Stratford Regional station £119M, Contribution to DLR upgrade £86M, Thorntons Field relocation £47M, Contribution to North London Line upgrade £110M, Other transport capital projects £178M, Other transport operating expenditure £357M.

Total Transport Projects £897M

Other Parkwide Projects:

Logistics for site construction £337M, Section 106 and master planning £127M, Insurance £50M, Security for park construction £354M.

Total Other Parkwide Projects £868M

IBC/MPC, Olympic Village £492M

Programme Delivery £647M

Corporation Tax and Net Interest £73M

TOTAL £6.090M. Remaining contingency: £2.009M

Jowell said, "This statement shows that after a thorough assessment of all the potential risks associated with a development of this scale, the budget is consistent with the funding package I outlined in March this year.

"Months of careful scrutiny have confirmed that the Olympic Delivery Authority 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.

"Now we look ahead to what will be a dramatic 2008, with the first building work starting on the Olympic Park site, the Beijing Games and the start of the four year countdown to London 2012. The project has high levels of public support and is on track."

Shadow Olympic minister Hugh Robertson said, "Today's statement establishes a welcome initial baseline but falls far short of the full and open budget we had been seeking. The obvious omission is any mention of the mass participation sports legacy which was the key commitment in the London 2012 bid but, as yet, remains uncosted and unfulfilled.

"Monthly cash-flows and a breakdown of the contingency are also needed if we are to ensure the budget doesn’t increase further," he said.

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