The anticipated final cost of building London’s Olympic Park and venues has fallen by £16M to £7.25bn, according to figures from the government’s latest quarterly update.
Figures from the Government’s July 2011 Quarterly Economic Report show that the overall funding package for the Games remains at £9.298bn.
But the Anticipated Final Cost (AFC) of the Olympic Delivery Authority’s (ODA’s) programme is now £7.250bn. This is a decrease of £16M on May’s report, where the AFC stood at £7.266bn.
Around £3M has been saved on transport projects due to bids being more competitive than expected. Around £18M has also been saved on site logistics and security. But extra cash has had to be allocated for a range of operations including dredging works to improve waterways in and around the Olympic Park for Games-time and legacy use.
Construction of the venues and infrastructure for the Games is now 88% complete with five venues on the Olympic Park now finished. The Aquatic Centre will be completed and unveiled on 27 July, one year to the day until the Opening Ceremony. In total £870M in savings have been achieved by the ODA since the November 2007 baseline budget was agreed, including £33M in the last quarter.
“With one year to go to London 2012 the Games construction is 88% complete and ahead of time and under budget,” said Olympics minister Hugh Robertson.
The ODA and the people who have worked on the venues have done a remarkable job to deliver top quality facilities in a challenging environment imposed by a fixed deadline and strict budget. Despite this they have continued to drive down costs which means we can celebrate one year to go with confidence and a real sense of excitement and expectation.”
ODA chairman John Armitt said there was still no room for complaceny.
“A world-class platform has been created for the Games and strong foundations will be left to build a lasting legacy. But we are not complacent as we continue to work hard towards the finishing line.”
Armitt said the achievements to date were testament to the strength of the British construction industry.
“The Olympic Park project is on schedule and budget and we have successfully hit all of our milestones over the last five years. This is thanks to the skill and professionalism of thousands of British businesses who have won contracts and shown the rest of the world what UK plc can achieve.
“The Olympic Park is a great showcase for UK industry and many companies have used it to go on and win work on other projects across the world.”
- Next week NCE is publishing a special major project report on the London 2012 Olympics to celebrate the industry’s achievement. The report will be available online and via NCE’s iPad App