TaxAdministrationTreasury forced to bail out 2012 Olympic village

Treasury forced to bail out 2012 Olympic village

Treasury will be forced to bail out the Olympic village as the credit crunch threatens PPP deal with developer

John Armitt,
Olympic
Delivery Authority
(ODA) chairman, has for the first time admitted the
Olympic athletes village would definitely require additional public funding to
cover a shortfall which risks running into tens of millions of pounds.

Armitt told the Guardian: ‘The government at the end of the day will
have to come in and support the village [financially] – that is understood. But
negotiations are going on at the moment to try and minimise the degree to which
further government funding to support the village is required.’

Armitt’s admission co-incides with a warning from the National Audit Office
(NAO) the existing deal with
Lend Lease, the
developer in charge of building the £1bn village, could collapse entirely.

The village is the single most expensive element of the Olympic Park
construction project, but plans for a public-private partnership between Lend
Lease and ODA have been undermined by problems in the banking market, which have
made securing loans more difficult.

Further reading:

Olympics village in £200m shortfall

London Olympics bill again under fire

Read
the Guardian story

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