London 2012 in danger of breaking into contingency fund

The National Audit Office has warned that London 2012 might have to break
further into its £2bn contingency fund. In its progress report on preparations
for the Games, the
NAO
called on officials to find a long-term use for the Olympic Stadium, and define
more clearly responsibilities in areas such as security and transport.

Last month the Government Olympic Executive said up to £160m of contingency
funding may have to be used to maintain and operate the Olympic Park, before its
handed over to the legacy company responsible for its post-Games use.

Amyas Morse, head of the NAO, said plans for the Games’s delivery needed to
be substantiated, particularly making sure the London Organising Committee of
the Olympic Games (Locog) would break even. “In addition, securing long-term use
of facilities such as the media centre and the main stadium should remain a
priority to get the best out of the Games both for the taxpayer and local
people.”

Locog will probably need to raise £2bn from sponsorship and ticket sales. The
NAO has asked it and other delivery bodies to resolve uncertainties over scope
and budgetary responsibilities by the time it presents its budget in October,
reports the Guardian.

Further reading:

First
FD for Olympic Park Legacy Company

2012
legacy depends on ring of financial rigour