Wednesday 18 July 2012

The London 2012 Games – on time, on budgetHugh Robertson, MP – Minister for Sport and the Olympics

David Goldstone – Finance Director, Government Olympic Executive

JULY 20129 days to Olympic Games Opening Ceremony

UNCLASSIFIED

Olympic Park delivered on time and within budget

£476 million of uncommitted contingency remaining

Successful test events, Diamond Jubilee and Olympic Torch Relay

We are in a strong position but not complacent; challenges remain

UNCLASSIFIED

THE CHALLENGE – 2005

Transform one of the most deprived areas of the UK

Create an extraordinary legacy for the UK and the world

Deliver the Olympic Park – largest construction project in Europe

Equivalent to building Heathrow Terminal 5 twice over in half the time

UNCLASSIFIED

The contaminated site was filled with disused tyres and industrial waste

UNCLASSIFIEDThe site was limited by old infrastructure and poor transport links

UNCLASSIFIED

The site was criss-crossed by electricity pylons that had to be dismantled

UNCLASSIFIED The UK’s largest and greenest clean-up operation

OLYMPIC PARK

UNCLASSIFIED

2.5 sq km site – bigger than Hyde Park A whole new quarter of East London A place to work, live and play Designed not just for Games but for long-term legacy

NEW WORLD-CLASS SPORTS VENUES

A NEW COMMUNITY – FOR GAMES & LEGACY

UNCLASSIFIED

Olympic & Paralympic Village – Home to 23,000 athletes and officials during Games– Converted into more than 2,800 homes in legacy A new school (Chobham Academy) and new health centre

UNCLASSIFIED

NEW INFRASTRUCTURE AND TRANSPORT FOR EAST LONDON

New power, water and sanitation

30 bridges and connections

East London one of the most connected parts of the capital

£6.5bn investment into transport system

Stratford station capacity trebled to over 200 trains per hour

Wednesday 18 July 2012

The London 2012 Games – on time, on budgetHugh Robertson, MP – Minister for Sport and the Olympics

David Goldstone – Finance Director, Government Olympic Executive

Public Sector Funding Package: Funders

2007 Baseline Budget 31 May 2012

Lottery 2.175

London 1.175

Central Govern-

ment 5.975

£9.325bn

Lottery2.175

London0.875

Central Govern-

ment 6.248

£9.298bn

Public Sector Funding Package: Programmes

Programme 2007 Baseline Budget (£m) 31 May 2012 (£m)

ODA and Park Transformation 8,099 A 7,057 B

Elite and community sports 290 290

Paralympic Games 66 95

Look 32 33

Security 838 1,028

LOCOG 0 183

Operational programmes 0 220

Tourism campaign 0 4

PSFP contingency remaining 0 C 388

Total 9,325 9,298

NotesA ODA baseline budget contained £350m for Park transformationB ODA forecast of £6,761m, plus £296m for Park transformationC Contingency was held against ODA programme

LOCOG c.£2.1bn budget privately funded

Contingency Available

November 2007 Baseline (£m)

31 May 2012 (£m)

ODA Programme contingency

968 88

“Funders” / PSFP contingency

1,004 388

Total 1,972 476

Contingency Remaining

ODA Expenditure: 75p in every £1 leaves a lasting legacy

Long term re-generation 75%

Works specific to the Games 25%

Credit crunch

• Village and Broadcast/Media Centre were to be privately funded

• Decision to bring into public ownership was made in 2009, due to credit crunch

• Village was sold to private developers in 2011 for approx. £550m (in addition to approx. £270m earlier receipts)

• Competition for legacy tenant for the Broadcast/Media Centre is near completion

Meeting the Challenges

From construction to operations

Savings from the construction phase have been utilised to support operational requirements:

• Park operations

• Crowd management

• Increased security

• Ceremonies

Meeting the Challenges

Meeting the Challenges

Managing to time and within budget• “Big Build” complete at one year to go• £1bn total ODA savings reinvested to meet pressures• Nearly £500m of uncommitted contingency remains