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OLYMPICS: Falling land values hit budget
7:25am Wednesday 10th February 2010
THE cost of hosting the 2012 Olympics in London could rise by up to £180million, it has been reported.
The rising costs are because of a drop in property prices and a bill for maintaining the Olympic after 2011, which was previously undisclosed.
The credit crunch could see sales of land making £150m less according to quarterly accounts from the Olympic Delivery Authority (ODA).
The ODA has also proposed spending between £110m and £160m on security and maintenance at the park from 2011 to 2013.
But officials have said the project, which has a total estimated cost of £9.3bn, will still be on time and within budget as savings will balance out lost revenue.
John Armitt, chairman of the ODA, said: “We are continuing to make strong progress across the project.
“There are, however, still big challenges ahead as construction accelerates across the site and the workforce peaks.”
Olympics minister, Tessa Jowell added: “As we enter the busiest and most exciting phase of the Olympic project so far, this report shows we are still on time and still on budget.
“We have seen a part of east London transformed thanks to the immense progress made by the Olympic delivery authority and contractors.”
She also said £400m of savings had been made in the last year.
But Mr Armitt has said the next year will be the toughest as £1.7bn is to be spent.
He said: “We take nothing for granted, but I am confident that the foundations for success are now in place.”
There has been an overall increase in the Olympic budget of £21m and another £160m has been set aside for maintenance and security at the park to 2013.
Tessa Jowell said: “We will continue to ensure that the investment in the Olympics is an investment that brings benefits to the whole of the UK now and for many years through business skills, sport and culture.”
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Your Say YourLondon
myopinioncounts, Walthamstow says...
12:24pm Sun 14 Feb 10
Most of the Londoners I know predicted it would be a financial disaster that would not 'provide jobs for local people' and fulfill all the other claims made .
It was evident that the budget would be exceeded again and again.
If those who fought to win the bid to host the games had to back it with their own money I doubt they would have been so keen.
Every country who has ever hosted the Olympics has been left with massive debts.
It is time that a permanent site was chosen in a country with a temperate climate, and all nations who want to compete contribute to the cost of building and thereafter maintaining it.
OLYMPICS: Falling land values hit budget
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newyear, says...
10:02am Wed 10 Feb 10