Government forced to bail out major Olympic projects

Status
Not open for further replies.

TeamPlayer

Yellow Belt
The government today revealed it would have to raid its London 2012 contingency fund for £461m to pay for the ongoing construction of the athletes village and the international media centre, after private sector investment dried up.

The Olympics minister, Tessa Jowell, also announced that the media centre – due to form a major part of the legacy from the games – would not be downgraded to a temporary building. But she admitted it would have to be entirely funded from the public purse.

Ministers and 2012 organisers had prepared the ground for today's decision by revealing that private-sector interest in the £1bn Olympic village and media centre had all but evaporated. The developer Lend Lease was to build 3,000 flats that would be sold on after the games, but those plans were hit by the collapse of the property market.

Despite reducing the number of flats by around 1,000, the developer has been struggling to find any takers, requiring the government to sanction the use of £326m from the fund to keep work going while talks continue.

Guardian.co.uk
 
Status
Not open for further replies.
Top