Preparations for the London 2012 Olympic and Paralympic Games progress report, February 2011, Department for Culture, Media and Sport

The preparations for the 2012 Olympic and Paralympic Games are going well overall and, despite time pressures, the Olympic Delivery Authority remains on course to deliver its construction programme. Five of the 24 main projects being undertaken by the Olympic Delivery Authority have now been completed ready for handover, and on current projections, the remaining projects will be delivered on time, though timings on three projects are becoming tight. Progress with the complex operational planning required for Games time has also been strengthened since the NAO last reported. The overall cost to the public purse of security during the Games has increased from £600 million to £757 million. The final cost of the Games is inherently uncertain. While the responsibility for important areas of cost has been resolved, £498 million of new scope has been added and there is now less contingency available to manage risk. £974 million contingency in the Public Sector Funding Package remains. Risks have been reduced but there can be no guarantee that the remaining contingency will be sufficient to cover further unknown risks to the Game. Progress has also been made in firming up the finances of LOCOG but there are still concerns that if it does not break even, public funding will be required. The report calls for an estimate of the net benefits expected to accrue to the UK which can be directly attributed to the Games.