LOCOG Feeling Credit Crunch As Media Center Funding In Doubt
Funding for a US$742.9M media center for the 2012 London Olympics is "in doubt because of restrictions on lending in the financial markets," marking the "second casualty in the [US$17.3B] Olympics project of the credit crisis," according to Ashling O'Connor of the LONDON TIMES. LOCOG officials are "already struggling to raise money from the private sector to fund" the US$1.9B athletes village. A senior London Olympics source said of securing funding, "It's difficult because, in this climate, no one wants to lend." Without private financing, the U.K. government "would be forced to raid a [US$1.9B] contingency fund set up for unforeseen events." The emergency money is "part of the [US$17.3B] budget that ministers vowed would be the ultimate cost to taxpayers of the Olympics." But O'Connor notes "consuming most of it with nearly four years to go until the Games would leave the Government with little room for manoeuvre should other parts of the budget, such as security, begin to spiral." Construction of the media center is "scheduled to start in the spring" (LONDON TIMES, 9/25). In London, Helen William reports it is "believed that approximately [US$928.3M] of the funding is in place," but the credit crunch is "having an impact on the availability of funding" for Australia-based Lend Lease, which is building the athletes village (London INDEPENDENT, 9/25).
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