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Olympic Games 2012: Construction

Volume 475: debated on Tuesday 29 April 2008

To ask the Minister for the Olympics what her latest estimate is of the cost to construct the Olympic Aquatics Centre for the 2012 Olympic Games; and for what reasons this estimate differs from initial estimates. (201376)

The budget for the Aquatics Centre is £242 million. This iconic venue, designed by renowned architect Zaha Hadid, will provide state of the art facilities and a world class permanent legacy facility for elite and community use. The contract for the Aquatics Centre also includes constructing the land bridge that will be the main gateway into the Olympic Park and will also form part of the roof of the venue. The budget for both the Aquatics Centre and the bridge is £303 million, and this has not changed throughout the procurement process. This figure includes the contract price, allowance for inflation, an element of project management costs, VAT and the costs to convert the venue for long-term legacy use (and associated VAT and contingency). This budget is within the ODA's £6.090 billion baseline budget as set out in the statement made in December.

The Bid Book estimate for the Aquatics Centre was $117 million at 2004 prices (approximately £73 million at a USD/GBP exchange rate of 1.6). However, this did not include inflation, legacy transformation costs, project management costs or VAT.

The overall venues budget remains broadly in line with the Bid Book when an allowance is made for inflation, project management costs, transformation costs and VAT.