U.K. Government Bails Out Olympic Village, Media Center Projects
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Jowell (r) Still Expects London Olympics
Construction Projects To Finish Within Budget |
U.K. Chancellor of the Exchequer Alastair Darling yesterday authorized a US$634.4M "Government bail-out" of the athletes village and media center for the '12 London Olympics, according to Paul Kelso of the London TELEGRAPH. The move "comes after developers and the Government failed to attract private investment to cover the projects," and the money was "advanced after a meeting of the ministerial funders' group." Of the funds authorized yesterday, US$448.8M "will be used for construction" on the US$1.4B athletes village, and the remaining US$185.6M "will go towards the media centre, a [US$488.8M] project which will now be entirely funded by the taxpayer." The bailout means that 40% of the "emergency contingency fund has now been allocated and confirms fears that the credit crisis and the dramatic slowdown in the property market will have serious implications for the Olympic project" (London TELEGRAPH, 1/22). London Olympics Minister Tessa Jowell "maintained that the project would still come in on budget." Jowell: "Lower than anticipated construction inflation and good progress across the project has reduced risks, meaning that the overall budget is unchanged and enough contingency funds remain. We are determined to deliver the Games within budget." But Liberal Democrat Olympic spokesperson Tom Brake said, "There is no evidence that after the Games, Tessa Jowell's pipedream of a 'digital hub' could survive without substantial on-going public investment. It is time to cut the Olympic cloth and settle for a scaled-down media centre." London Assembly Conservative Group Olympic spokesperson Andrew Boff said the bailout news offers a "fantastic opportunity to rip the plans for these frankly sub-standard designs from the drawing board" (LONDON TIMES, 1/22). Jowell said that the media center "would not be downgraded to a temporary building," though she "admitted it would have to be entirely funded from the public purse" (Manchester GUARDIAN, 1/22).
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