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The cost of the 2012 Olympic Stadium has risen again by nearly £50m and suppliers are holding organisers to ransom, Tessa Jowell admitted today. Altogether the construction budget now stands at £1.36billion, an increase of £97million. The Olympics Minister was speaking to MPs about the government's Olympic Executive quarterly report. The centerpiece Stratford stadium will now cost £547million, up £43m - other venues will also cost more to build. Along with the 80,000 seater arena, the aquatics centre, velodrome and other venues have gone up by nearly £100 million. Bosses are blaming engineering difficulties, changes of design and land contamination.
Suppliers 'holding to ransom'
Blame is also being levied at the door of suppliers, who, the report says, are holding organisers to ransom due to the lukewarm response to tenders. The current economic climate has made builders wary of getting involved in another Wembley Stadium scenario were the constructor had to shell out millions in overruns.
Other increases
Site preparation and infrastructure is will expected to rise by £16million to £1,881million. The Aquatics centre will go up by £5million to £251million. "Other Park venues" will rise by £25million to £446million. The cost of the velodrome, has risen from £80million to £105million because of land contamination. "Non Park venues" will rise by £24million to £123million. The increase is thought to include the rising cost of the artificial white water canoe venue in Broxbourne, Hertfordshire.
Savings made
The report did show some signs of savings, stating: "In a programme of this size, it is inevitable that there will be upwards and downwards movements within the funding package over the life of the programme." The transport budget will apparently fall by £47million to £817million.
Contingency funds raided
Organisers failed to attract any private investment to help build the Olympic village and media centre. Just last Olympic bosses raided £496million from the contingency fund to keep the two projects on track - 40% of this budget is now gone. 2012 is costing the taxpayer £9.3bn.
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