|
Olympics Minister Tessa Jowell has admitted that efforts to raise private funds to help build the biggest 2012 venues may end in failure.
When asked by a parliamentary culture media and sport committee yesterday whether it was possible no private funding would materialise she answered: "Of course there is a possibility, but that doesn't mean we will give up on the possibility." The minister who called the 2012 games "economic gold in a time of economic lead" is struggling to find private backers to help build the £900m Olympic Village and the £400 million media centre.
Contingency funds
Organisers have not ruled out a government rescue package to save the projects via the £1bn contingency fund. Lend Lease; the Australian developers building the Olympic Village have been unable to secure backing from the banks leaving the Olympic Delivery Authority to dip into the fund with a £95m bailout. She however, did not concede that the two largest 2012 projects would be entirely public funded.
'On budget on target'
She insisted to MPs that the projects were still on budget and using contingency money was not "any kind of failure". The Olympic village has already been slimmed down from 4,600 to 2,800 flats, following a fall in property prices. Plans to sell off the part of the village as expensive luxury apartments when the games have finished had to be modified, the committee was told. MPs said the value of the property to be sold off had fallen by £1bn - she did contest the figure but that did not have "an official status".
|
