The Associated Press reports negotiations on building London 2012’s Olympic village will continue into next year, passed the December 25 deadline, because of the global financial crisis. The Olympic Development Authority, which has been meeting with Australian construction company Lend Lease, is reportedly having problems securing private financing from the banks to build the village and then sell it off as apartments when the Games are over.
Olympics minister Tessa Jowell said Tuesday, “due to the current situation in the credit and housing markets it is now likely that these negotiations will run into next year. Our priorities are to secure value for public money, the village delivered on time, and a long term asset that will provide up to 3,000 homes with a return for the taxpayer”.
The number of apartments has now been scaled back from 4,200 to 3,300 for the 17,000 athletes and coaches because of the fall in the housing market. There are proposals to reduce the number of apartments even further.
Colin Moynihan, British Olympic Association (BOA) chairman said, “the Olympic village is critical. Part of Beijing’s great success was having the best Olympic village in history. It is hugely important to the IOC, the BOA and the athletes, so we will be looking very carefully at the new plans put forward”.
