LOCOG Report Voices Concerns Over Credit Crisis Impact On Games
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LOCOG Report Shows Concerns
Over Security, Legacy Of London Olympics |
LOCOG BOD member David Ross, in a "top-level review of preparations" for the 2012 London Olympics presented Tuesday to London Mayor Boris Johnson, indicated that while "good progress is being made, there are concerns over security, the Olympic Village and the legacy of the project," according to Andrew Baker of the London TELEGRAPH. Ross said that the Olympic Delivery Authority's "budget forecast of final costs, which currently stands at [$13.9B (all figures US)], including [$2B] of contingency funds, 'is likely to be spent in full.'" The report suggested that the construction of the Olympic Village is "under threat because of the recent contraction in the credit markets, fall in property prices and the continuing rise in the cost of building materials due mainly to the boom in economic activity in China." Ross said in the report, "I am disappointed that we find ourselves at an advanced stage of the procurement process without clear and agreed plans for legacy for a number of important venues. This needs to be settled as a top priority." Ross also is "concerned about security planning, or rather the lack of it" (London TELEGRAPH, 6/18). Ross indicated that London's Olympic preparations are "facing a 'perfect storm' of financial and security issues which may push the final bill for the Games above the [$18.2B] funding package." Ross said in the report that economic pressures "mean the original budget may be insufficient," as that budget "had a [$3.9B] contingency fund but [$2B] has already been allocated and Ross warns that the remainder may not be enough." Ross in the report also revealed that the main Olympic stadium cost has "increased by [$60.7M] since November and that the overall venues budget has spiralled by [$207.6M], almost 10%, in the same period." Cuts in other areas have "limited the total cost increase to the overall project to [$31.3M]" (Manchester GUARDIAN, 6/18).
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