andyandy
16th November 2006, 06:24 AM
shocking......
oh well, at least i don't live in London :)
The budget for the London 2012 Olympics could reach £5bn, more than double the original estimate, after games officials admitted yesterday the final cost is likely to be "significantly higher" than first predicted. The fears were highlighted yesterday after it emerged that the Treasury is advocating a contingency fund to deal with a potential overspend of 60% on construction work.
Debate is raging on whether the budget should include a contingency element of between 20% to 60% for cost overruns, as well as an extra £250m for security, a VAT bill of £250m, and around £1.5bn more for regeneration, including the creation of 35,000 homes in the Lower Lea Valley in east London.
Although the government is not expected to announce the new budget until next year, the total funding package is likely to far exceed the original £2.375bn for building venues and infrastructure, plus £1.044bn for regeneration work.
Members of the London assembly yesterday criticised organisers for the apparent elasticity of the budget and the cloak of secrecy surrounding negotiations between the Olympic Delivery Authority, the Department of Culture, Media and Sport, and the Treasury.
Sir Roy and David Higgins, the ODA's chief executive, had been summoned before the assembly to allay fears about the Olympic project following the abrupt departure last month of the organisation's chairman, Jack Lemley. On his return to the US, the American construction expert had warned in an interview with his local paper, the Idaho Statesman, that costs would escalate on an exponential basis and that political feuding was endangering the project.
Yesterday Sir Roy admitted for the first time there had been "serious differences" between Mr Lemley, the ODA board and Tessa Jowell, the culture secretary. He said Mr Lemley was concerned by the large number of stakeholders involved and frustrated that the ODA did not yet have possession of the land for the Olympic Village, which will require a compulsory purchase order.http://sport.guardian.co.uk/london2012/story/0,,1949021,00.html
oh well, at least i don't live in London :)
The budget for the London 2012 Olympics could reach £5bn, more than double the original estimate, after games officials admitted yesterday the final cost is likely to be "significantly higher" than first predicted. The fears were highlighted yesterday after it emerged that the Treasury is advocating a contingency fund to deal with a potential overspend of 60% on construction work.
Debate is raging on whether the budget should include a contingency element of between 20% to 60% for cost overruns, as well as an extra £250m for security, a VAT bill of £250m, and around £1.5bn more for regeneration, including the creation of 35,000 homes in the Lower Lea Valley in east London.
Although the government is not expected to announce the new budget until next year, the total funding package is likely to far exceed the original £2.375bn for building venues and infrastructure, plus £1.044bn for regeneration work.
Members of the London assembly yesterday criticised organisers for the apparent elasticity of the budget and the cloak of secrecy surrounding negotiations between the Olympic Delivery Authority, the Department of Culture, Media and Sport, and the Treasury.
Sir Roy and David Higgins, the ODA's chief executive, had been summoned before the assembly to allay fears about the Olympic project following the abrupt departure last month of the organisation's chairman, Jack Lemley. On his return to the US, the American construction expert had warned in an interview with his local paper, the Idaho Statesman, that costs would escalate on an exponential basis and that political feuding was endangering the project.
Yesterday Sir Roy admitted for the first time there had been "serious differences" between Mr Lemley, the ODA board and Tessa Jowell, the culture secretary. He said Mr Lemley was concerned by the large number of stakeholders involved and frustrated that the ODA did not yet have possession of the land for the Olympic Village, which will require a compulsory purchase order.http://sport.guardian.co.uk/london2012/story/0,,1949021,00.html