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London Olympics cost may rise again, says NAO report

26 Feb 10 The London 2012 Olympics is on time and within its £9.3bn pound budget, but there is the risk that it will have to make further calls on the £2bn contingency fund, a National Audit Office report said today.

The London 2012 Olympics is on time and within its £9.3bn pound budget, but there is the risk that it will have to make further calls on the £2bn contingency fund, a National Audit Office report said today.

"With just under two-and-a-half years to go, there are plenty more hurdles which the delivery team are yet to jump,” said Edward Leigh, chairman of the committee of public accounts. "But with less contingency funding available, the room for manoeuvre has been reduced."

High among the NAO's concerns is a potential shortfall in the estimated sales revenue of the Olympic Village. The government was forced to use contingency funds to pay for the £1bn pound project when the planned private financing fell through during the credit crunch.

Private investment for the construction of the £334m Media Centre also failed to materialise and were also covered by public funds. The NAO said its location away from the main public transport hub at Stratford could hamper the government's attempt to persuade businesses to move in after the Games.

The audit office also raised concerns about the Games' legacy plans and called for clarity and coordination between the numerous 2012 bodies on scope, costs, budgets and responsibilities.
 

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