Re: scan: London 2012 Starshow: bill leaps to £10bn

Olympics bill leaps to £10bn
28.02.07

International Olympic Committee officials are so concerned about the 
impact of the rise from the original budget of £2.375billion that they 
have demanded a full breakdown of costs at a key meeting with London 
2012 chairman Lord Coe in Canary Wharf.

Lord Coe's hands are tied because it is understood the Government plans 
to delay announcing the revised bill for the Games until July after 
disputes within Whitehall on how it is going to be paid.

It is not likely to be made public until Tony Blair's successor is in No 
10.

The Government is also believed to want to settle on a final figure of 
just £6billion because of the public relations damage of admitting the 
larger figure.

But the lower sum does not include the costs of security, VAT and a 
contingency fund for overruns that will mean the cost of the Games will 
eventually total £ 10billion.

An investigation shows the main reasons for the rise are:

• More than £2billion needs to be found to cover the regeneration costs 
for east London around the Olympic Park. This was not included in the 
original budget.

• At least £1billion - more than five times that originally thought - 
will be needed to cover security costs following the London bombings on 
7 July 2005.

• An extra £750million for infrastructure costs - originally expected to 
be met from the private sector - must be included in public funding 
because it is not possible to secure it in time to start building the 
Olympic Park in the summer.

• At least £2.7billion is being demanded as a contingency to cover any 
overruns.

cont'd....
http://www.thisislondon.co.uk/sport/article-23387233-details/Olympics+bill+leaps+to+%C2%A310bn/article.do