The anticipated final cost of the 2012 Olympics has fallen by £61m, with the sale of the Athletes’ Village bringing in £14m more than previously expected.
Figures from the government’s December 2011 Olympic Quarterly Economic Report show the build cost is expected to be down £61m on the prior report’s estimation three months earlier, to just under £7.2bn,
Contracts for the sale of the Olympic Village to Delancey and Qatari Diar were exchanged on 9 August for a total of £557.5m.
The report says the net benefit to the Olympic Delivery Authority was £14m better than the overall position estimated in the June 2011 report.
However, this benefit is split across a number of project budgets, and other forecast movements in the quarter, relating to the costs to complete the Athletes’ Village works post-games, which has offset some of the savings.
Separate to the ODA programme, an extra £271m will be required for venue security at the Games, which includes the recruitment and training of 23,700 venue security personnel for more than 100 competition and non-competition venues across the UK.
Minister for sport and the Olympics Hugh Robertson said: “This has been a big year for the programme with the construction project reaching its peak and the staging of the Games coming to the fore.
“As we get ready to enter the Olympic year and the pressure mounts, I am confident that we remain on track to deliver a memorable Games that will enthral the nation and the world.”
Nick.whitten@estatesgazette.com
