Figures from the Government's Annual Report on London 2012 show that the overall funding package for the Games remains at £9.298 billion ($14.870 billion) while the Anticipated Final Cost (AFC) of the ODA programme is £7.301 billion ($11.676 billion).

This includes a like for like increase in the ODA's spend of £12 million ($19 million), plus additional funding for park operations – which has been included in the AFC for the first time - of £57 million ($91 million), which makes the overall increase in the quarter £69 million ($110 million).

Hugh Robertson, the Minister for Sport and the Olympics, said: "The construction phase is progressing on time and to budget putting the London 2012 programme in the best possible shape.

"This is the year when tickets will go on sale, test events start, volunteers are recruited, the torch relay route is announced and venues start being prepared for competition.

"Now is the time for everybody to start planning their Games."

It was reported in February 2010 that the ODA will take on additional responsibilities for the operation of the Olympic Park and its venues and facilities between 2011 and 2014.

As previously reported, the ODA estimated that the total additional cost of Park Operations would be up to £160 million ($256 million) depending on the finalisation of scope, delivery approach, procurement and other factors.

The ODA's budget for this additional park operations work has now been finalised at £158 million ($253 million) of which London 2012 will receive £67 million ($107 million) for work such as venue operations, licensing and testing.

Following the decision around the Comprehensive Spending Review (CSR) to make financial support available to operational delivery, London 2012 will also receive £36 million ($58 million) from the funding package to contribute to the cost of using the Olympic Village and to meet costs arising from changes to venues that generated savings for the ODA.

A further £27 million ($43 million) is being retained by Government to cover further cost pressures that may arise in staging the Games.

Funding of up to £22.5 million ($35.9 million) has been committed to some host local authorities to ensure the cost of Games-time operations, including additional waste and street cleaning, are not borne solely by local council-tax payers.

Provision of up to £90.5 million ($144.7 million) will also be made available to various Olympic organisers for other operational activities to be agreed.



Construction of the venues and infrastructure for the Games is 79 per cent complete with key achievements this year including the completion of the first purpose-built venue, the Lee Valley White Water Centre at Broxbourne, and the official turning on of the Stadium lights by the Prime Minister.

The Velodrome is on course to be the first Olympic Park venue to be completed while the ODA also announced today that the multi storey car park for the Main Press Centre is complete.

ODA chief executive Dennis Hone said: "We remain on schedule and within budget as we push ahead into the final year of construction.

"We continue to bear down on costs where possible with around £780 million ($1.2 billion) now saved since the start of the project to keep us within budget.

"We announced over a year ago the additional costs for Park Operations which have now been absorbed into the latest Anticipated Final Cost in line with expectations.

"The ODA is on track to deliver a fantastic stage for the Games and in legacy though we are not complacent – there is still a lot of hard work ahead."

From April 2011, overall £500 million ($800 million) will be available as contingency for additional cross-programme issues that may arise, including any major changes in security circumstances.

This reflects the programme's changing focus from construction to operational requirements.

In December the ODA announced the shortlist of private-sector organisations who have been invited to tender for the Athletes' Village.

This begins the process that will see the public purse repaid for its investment.

Today's Quarterly Economic Report comes just ahead of London 2012 publishing the Olympic Games Sports Competition Schedule, which is due tobe released tomorrow.

The schedule will give the date, time and venue for every one of the 640 sessions across the 26 Olympic sports.

To read the full DCMS report click here.

Contact the writer of this story at [email protected]


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