According to AFP London Mayor Boris Johnson said Wednesday that the London 2012 budget would not rise beyond a projected 9.3 billion pounds, while admitting that accounting had to be taken of the economic downturn.
Johnson said, “the problems with the financial markets have made things more difficult but the budget of 9.3 billion pounds will not be exceeded despite the economic crisis”.
He added that despite the deepening crisis, talks were in hand with private investors regarding the massive infrastructural developments necessitated by the Games, particularly construction of the Olympic village. Once the Games are over the athletes’ accommodation would be converted into residential property.
The original estimate for the Olympic stadium in London’s bid in 2004 was 282 million pounds but the global credit crunch and structural changes to the stadium’s roof are to blame for the rise, according to the government’s annual report on the progress of the Olympic Games preparations.
The cost of the aquatics stadium has risen five million pounds to 251 million pounds since the last estimate in September last year, but the government says cost savings are being made to help offset the increases.
