London 2012 Olympic Stadium Cost To Rise

“Olympic sources” told the Independent newspaper that the cost of building the London 2012 Olympic Stadium will be more than the 250-million-pound budget submitted to the International Olympic Committee (IOC) because of soaring energy and construction costs.

At the time of the bid construction inflation was three percent and now the rate has risen to seven per cent.

According to the newspaper rising energy costs have pushed up the price of the 80,000-seat stadium to at least 280 million pounds, putting pressure on the original Games budget of 2.4 billion pounds.

The government reportedly has asked accountants to review costs and there are reports that the budget may rise to five billion pounds because of the expected regeneration of London’s East End.

The Independent reports that contractors will be asked to submit plans to reduce the stadium capacity to 25,000 when the Games are over to avoid making it into a white elephant.

Meanwhile the newspaper says the Olympic Delivery Authority (ODA) will come under pressure to explain how it will alter its plans since two major projects are now six months behind schedule. Construction on the Olympic Park Loop Road and the Aquatic Centre were supposed to start last December. Write or read comments about this article

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