The AFC of the construction programme has fallen from £7.301 billion ($11.882 billion) at the last Quarterly Economic Report in February to £7.266 billion ($11.826 billion) to bring about the £35 million ($57 million) reduction while the overall funding package for the Games remains at £9.298 billion ($15.135 billion).

The latest report also shows that 83 per cent of the Games-time construction programme is now complete with the Handball Arena today becoming the third finished venue on the Olympic Park following the handover of the Velodrome and the Olympic Stadium earlier this year in what is the ODA's final year of construction.

"The beginning of this year has seen considerable progress on the Olympic Park with two of the centre-piece venues finished and the Handball Arena now complete," said Robertson.

"The ODA has continued its focus on costs - driving efficiencies across the programme resulting in a £35 million ($57 million) reduction in the anticipated final cost.

"With just over a year to go, the project is in good shape but there is no complacency as we will be staging the two biggest sports events in the world next summer – the Olympic and Paralympic Games.

"There will be big challenges ahead as we undertake the biggest peacetime logistical exercise ever staged in the UK but we can approach them with confidence based on a strong track record of success to date."

Meanwhile funding of up to £12.5 million ($23.3 million) has been made available to the Greater London Authority (GLA) to support its plans for the Games.

This funding will be used to provide facilities for the non-accredited media, to improve accessibility on London's Southbank and to recruit and train 8,000 volunteers to help visitors to the city at Games-time.

"We are on track to deliver an excellent platform for the Games although we are not complacent as we push ahead on the final straight," said ODA chief executive Dennis Hone. 

In total £830 million ($1.3 billion) in savings have been achieved by the ODA since the November 2007 baseline budget was agreed including £49 million in the last quarter.

As of March 2011 the gross allocation of contingency for the ODA programme was £1.069 billion ($1.741 billion).

The remaining balance of ODA contingency now stands at £476 million ($775 million).

This follows changes to the breakdown of the overall funding package in the 2010 Spending Review in which the funding available exclusively to the ODA was reduced by £684 million ($1.1 billion).

Contingency totalling £3 million ($5 million) was released to the ODA during the last quarter for transformation works on the Park after the Games and site preparation works for the sponsors' areas on the Park.

In addition to the remaining ODA contingency, there is £629.5 million ($1.025 billion) potentially available as contingency for other cross-programme issues that may arise including any major changes in security circumstances.

This contingency is part of the £9.298 billion (15.135 billion) funding package and reflects the programme's changing focus from construction to operational requirements.

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