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Government releases Olympics annual report

017/09
5 February 2009

The Olympics are on time and on budget, according to a Government report released today.

The Government Olympic Executive Annual Report shows that while cost forecasts have risen on some venues by £196 million, these have been offset by forecast savings of £193 million on infrastructure around the venues and work to clean up the park.

Olympics Minister Tessa Jowell said:

"This shows that we are on course to remain on budget despite the current global economic downturn.

“While cost forecasts have risen on some venues, these increases have been offset by savings in infrastructure around the venues and work to clean up the park.

“We are now halfway through the project with three quarters of the contingency left available, and we are confident that we can deliver on time and within budget.”

The report highlights:

  • Potential cost savings - for example, the structures and bridges project is currently predicted to cost £1,881million (£98 million less than the November 2007 baseline), and preparing the site so that it is ready for construction is currently forecast to cost £47 million less than the November 2007 baseline of £1,979 million.

  • The potential final cost (PFC) of the stadium has risen to £547million – an increase of £22 million from the July 2008 PFC of £525 million, and from a 2007 baseline of £496 million. Increased potential costs are due to the cost of an external wrap around the building and changes to the roof to meet the loading requirements of the opening and closing ceremonies.

  • The PFC of the aquatics centre has risen to £251million, an increase of £5 million from the July 2008 PFC of £246 million, and from a 2007 baseline of £214 million. Most of the increases are related to the cost of the bridge to be built over the aquatics centre being absorbed into the overall budget, as well as improved facilities for athletes and an enhanced community legacy.


Olympic Delivery Authority Chairman John Armitt said:

“We are managing the budget as an overall envelope. Where there are cost pressures in some areas, such as on venues, we are working to offset these by making savings in other areas, such as the clean up of the site and infrastructure projects. 

“Work continues to make good progress on site and at this point we are not asking for any more contingency.  We remain confident we can deliver within the £9.325 billion budget.”

Construction work is well underway on the Olympic Park site. The stadium continues ahead of schedule and last week the first sections of the stadium roof structure were installed.

Notes to editors

  1. The figures released today are part of the second Government Olympic Executive Annual Report, which can be found on the DCMS website.

  2. The £9.325 billion public sector funding package was announced in March 2007. The Olympic Delivery Authority baseline budget for projects and venues was finalised in November 2007 and is used by the Government Olympic Executive as the basis for monitoring progress against timetable and budget.

  3. The Government announced more funding for the Olympic Village and media centres in January 2009 - press notice can be found on the DCMS website.

 

 

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