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London's Olympic costs skyrocket
The cost of London 2012 Olympic's is rising rapidly.
Last Modified: 21 Nov 2006 16:40 GMT

Tessa Jowell upping the costs to keep them down (Picture: GALLO/ GETTY)

Culture Secretary Tessa Jowell has revealed the cost of London’s 2012 Olympic Park will cost $1.7 billion more than initially budgeted.

Ironically, the new figure of $6.3 billion (up from $4.5 billion) includes an extra $760 million payment to delivery partner consortium CLM, who are to ensure the 2012 Games comes in on time and on budget.

The increase in costs was blamed on the doubling in the price of steel and a decision to revise transport costs to take into account inflation in the run-up to 2012.

"An additional cost of 400 million (pounds),  not included in the original bid, is in order to fund the delivery  partner whose overriding responsibility is to ensure the costs of the  Games are kept on budget and that the timescales are kept," Jowell said in parliament.

Jowell said it was likely the increase in cost would be met by a combination of London council taxpayers and Lottery games.

Source:
Agencies
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