Book Description:
This is the second in a series of National Audit Office reports on the preparations for hosting the London 2012 Olympic and Paralympic Games. The first in this series of reports, 'Preparations for the London 2012 Olympic and Paralympic Games Risk Assessment and Management (HC 252)' (ISBN 010294427X), is available below, published February 2007. 'The Budget for the London 2012 Olympic and Paralympic Games (HC 612)' examines the development of the budget costs, provisions and funding for the venues and infrastructure required to host the Games, as well as related costs such as security.On 15 March 2007 the Secretary of State for Culture, Media and Sport announced to Parliament the budget for the Games and infrastructure associated with the Olympic Park and other venues totalling GBP 9.325 billion, some GBP 5.289 billion higher, in gross terms, than the cost estimate at the time of the bid. This increase in cost estimates, along with a reduction in anticipated private sector funding, means that public sector funding for the Games has increased by GBP 5.906 billion (which includes a contingency of GBP 2.747 billion which may not be used in full).The overall conclusion is that the budget announced in March 2007 represents a significant step forward in putting the Games on a sound financial footing and should help those involved in delivering the Olympic programme to move forward with greater confidence. The budget process followed has been thorough and the judgements and assumptions made by the Department and the Olympic Delivery Authority have been informed by detailed analysis and expert advice.Significant areas of uncertainty remain, such as the finalisation of detailed design specifications, the legacy benefits to be delivered, how potential suppliers will respond to invitations to bid for work, and the impact of inflation in construction prices, as reflected in the high level of contingency that has been provided for. A number of recommendations are made covering the management of the budget and risk.
|
