I am publishing today the Government Olympic Executive’s Quarterly Report—“London 2012 Olympic and Paralympic Games Quarterly Report February 2012”. This report explains the latest budget position as at 31 December 2011, and outlines some of the investments which are being made to capitalise on the London 2012 Olympic and Paralympic games.
Across the whole games project, preparations are reaching their final stages. Ownership of the Olympic park has been transferred from the Olympic Delivery Authority (ODA) to the London Organising Committee. The Olympic and Paralympic travel planning website “Get Ahead of the Games” has been launched to help people plan their games-time journeys. The security and emergency services have taken part in some very visible testing exercises, and sports test events continue, most recently the track cycling world cup at the velodrome and the diving world cup at the aquatics centre.
At just 150 days to go until the games, the overall funding package remains at £9.298 billion with £527 million of uncommitted contingency available, a reduction of £1 million on the previous quarter. The ODA’s construction programme is now 96% complete. The anticipated final cost of the ODA’s construction, infrastructure and transport programme is £6.777 billion—a decrease of £79 million on the previous quarter. This includes £26 million that the ODA has returned to the DCMS, which is being transferred to LOCOG and the OPLC for work on park venues and security. On a like-for-like basis, the ODA’s anticipated final cost has reduced by £211 million since the 2010 spending review.
The ODA has achieved £38 million of new savings in the quarter October to December 2011, taking the total achieved since the November 2007 baseline to more than £950 million. Construction of the venues and infrastructure for the games is 96% complete, with the Olympic park and village handed over from the ODA to LOCOG in January 2012 so they can prepare the venues for staging the games.
A number of items of work have been transferred to LOCOG following the handover, as they are now best placed to deliver them. Accordingly, £24 million has been released to LOCOG for operational security and for the conversion of venues for the Paralympic games. Up to £12m has also been released to LOCOG for capital works which will have legacy benefits, including the fit out of the media centres, the installation of electric vehicle charging points and the relocation of the hockey pitches to Eton Manor following the games.
As planned, funds have also been released for pedestrian management outside games venues (£57.7 million) and additional utilities resilience measures across games venues (£12.5 million). These costs were previously forecast so do not constitute an increase, but rather a confirmation of previous budget assumptions.
The remaining balance of contingency within the public sector funding package now stands at £425 million, with an additional £102 million available to the ODA in programme contingency to cover assessed risk. In total, this leaves £527 million of uncommitted contingency remaining.
The change to the ODA anticipated final cost is due to a number of factors, including:
A decrease of £72 million in the programme contingency required to meet remaining assessed risks;
A net £29 million increase in transport operating expenditure reflecting a reallocation of £34 million to venue transport operations offset by £5 million savings;
A decrease of £15 million largely due to LOCOG taking responsibility for operational security from January 2012;
A reduction of £6 million in the forecast construction costs of the village due to close out of commercial contracts; and
An increase of £3 million in the international broadcast centre and the main press centre costs due to commissioning of the building and improved drainage systems.
With 150 days to go to the games, we remain on time and within budget with more than £500 million of uncommitted contingency remaining. This puts us in a strong position and gives me increasing confidence that we can deliver the games under budget.
I would like to commend this report to the Members of both Houses and thank them for their continued interest in and support for the London 2012 games.
Copies of the quarterly report February 2012 are available online at: www.culture.gov.uk and will be deposited in the Libraries of both Houses.