(ATR) The British government today published a detailed breakdown of 2012 Olympics costs and pledged to keep within the $19bn budget for the Games.
Olympics minister Tessa Jowell confirmed that the baseline cost for the Games, excluding “general program contingency”, is $12.5bn. That is in line with the Olympic Delivery Authority budget announced as part of the total government funding package in March.
Non-ODA costs include money allotted for security ($1.2bn) and elite and community sport.
Despite a 20 per cent chance of cost overruns, Jowell insisted any overspends would be covered by over $4bn contingency built into the $19bn budget to cover building and transport costs.
“The program-wide risks, and other risks outside the ODA’s control, have been assessed and quantified and the contingency available has been confirmed as sufficient to cover such risks,” she said.
New figures revealed Monday include a $4bn spend on Olympic Park preparations, including power lines, bridges, roads, utilities and landscaping.
Venue costs are set at $2.4bn. Of this figure, the $1bn spend on the 80,000-seat Olympic Stadium has been known for some time. A figure of $1.2bn is allocated to building other venues in the 500-hectare park, including the aquatic center which is expected to come in at around $150m.
Additional venues away from the east London site will cost a further $206m.
The ODA's transport projects accounts for $1.8bn of its budget. Another key figure is the $1bn set aside for development of the IBC/MPC and Olympic Village.
“This statement shows that after a thorough assessment of all the potential risks associated with a development of this scale, the budget is consistent with the funding package I outlined in March this year,” Jowell said.
“Months
of careful scrutiny have confirmed that the Olympic Delivery Authority has the money it needs to deliver the venues and infrastructure for a terrific summer of sport, as well as leaving a long-term legacy for one of the most deprived parts of the country.”
Jowell also revealed how the ODA's $1bn initial allocation of the contingency funds has been spent.
Designed to “manage early cost pressures”, more than half of this figure was spent on site preparation and infrastructure, and venues. Much of the remainder has gone on “other park-wide projects.”
“Now we look ahead to what will be a dramatic 2008, with the first building work starting on the Olympic Park site, the Beijing Games and the start of the four-year countdown to London 2012,” Jowell said.
Jowell reiterated that the Olympic project continues to enjoy a high level of public support and insists it is on track.
But shadow Olympics minister Hugh Robertson says the budget still lacked transparency.
While welcoming the initial baseline budget, he said it “falls far short of the full and open budget we had been seeking.”
“The obvious omission is any mention of the mass participation sports legacy which was the key commitment in the London 2012 bid but, as yet, remains uncosted and unfulfilled,” he said.
“Monthly cash-flows and a breakdown of the contingency are also needed if we are to ensure the budget doesn't increase further.”
Robertson's concerns are likely to be addressed in January when further budget details will be announced.
The ODA will issue a summary of the baseline scope, aligned budget, program and risks.
Jowell will provide a detailed account of progress across the Olympic program when the first Olympic annual report is produced in the New Year.
And she has vowed to make further reports to Parliament on a six-monthly basis, including information on further allocation of contingency.
With reporting from Mark Bisson in London.
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