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£69m increase in final cost of 2012 Olympics

The anticipated final cost of London 2012 for the Olympic Delivery Authority has increased slightly, with construction work now almost 80 per cent complete.

The government and ODA’s annual report on the London 2012 Olympic and Paralympic Games was published today and provides an update on the work currently being completed.

The report reveals that the ODA’s current AFC is £7.301 billion, an increase of £69 million since September 2010 that reflects £57m additional funding for park operations. The overall public sector funding package for the games remains at just under £9.3bn.

The most recent ODA report was released on the same day as a water supply failure saw thousands of workers sent home from the Olympic village site after a water pipe was broken, leaving no drinking water or lavatory facilities.

The site is expected to return to normal tomorrow after work was carried out to repair the broken pipe.

Among the construction updates set out in the ODA report were:

  • The Velodrome structure is complete and watertight and remains on target to be the first Olympic Park sporting venue to be completed early in 2011
  • Construction is underway on Eton Manor, with the sites for the temporary swimming pools being dug out, foundations for the tennis courts and stands progressing, and structural works starting on the permanent sports complex.
  • Planning permission has been secured for construction at Royal Artillery Barracks with a contractor due to be appointed early in 2011.
  • The main construction of the Olympic Village set for completion on schedule by the end of 2011

Recent milestones include the completion of the first brand new venue, the Lee Valley White Water Centre at Broxbourne, and the official turning on of the main stadium’s lights by the Prime Minister and the Mayor of London

In 2011 the majority of venues and infrastructure projects will be completed. The latest employment figures show that there are now more than 12,000 workers on the Olympic Park and Olympic Village projects combined, and the project continues to provide jobs and contract opportunities around the UK at a difficult economic time

A total of over £780m in savings has been achieved by the ODA since the November 2007 baseline was agreed, including £33m in the last quarter

Minister for sport, Hugh Richardson said: “We are looking forward to delivering a world-class games, but we also want to ensure a lasting sporting, economic and social legacy for everyone in the UK.

“We are already seeing the legacy of London 2012 even before the Games have begun. Businesses around the UK have been helped through the tough economic climate by winning contract opportunities linked to London 2012.

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