This presentation was given to UK journalists by Olympics minister Hugh Robertson, Dennis Hone of the Olympic Delivery Authority and David Goldstone, director of finance at the Government Olympic Executive, on June 13, 2012 It explains the background behind the publication of the government's final quarterly economic report on London 2012.

1. GOE QUARTERLY REPORT
– June 2012
Jeremy Hunt MP
Secretary of State for Culture, Olympics, Media & Sport
Hugh Robertson MP
Minister for Sport & Olympics
Dennis Hone
Chief Executive, Olympic Delivery Authority
David Goldstone
Director of Finance, Government Olympic Executive
13 June 2012
UNCLASSIFIED

2. JUNE 2012
44 days to Olympic Games Opening
Ceremony
 Construction virtually complete
 £476m of uncommitted contingency
 Successful test events
 A great Jubilee weekend
 Country embracing Torch Relay
In a strong position but no complacency as
challenges remain
UNCLASSIFIED

3. OVERALL 2012 BUDGET POSITION
(All figures to nearest £m)
31 Dec 31 Mar 31 May
2011 (£m) 2012 (£m) 2012 (£m)
ODA programme 102 88 88
contingency
PSFP contingency 425 403 388
and other savings
Uncommitted 527 491 476
contingency
UNCLASSIFIED

4. OVERALL 2012 BUDGET POSITION (All figures to nearest £m)
PSFP programme 31 Dec 2011 31 May 2012 Variance from 31 Dec 2011 to
forecast (£m) forecast (£m) 31 May 2012 forecast (£m)
ODA, incl. 6,777 6,761 -16
ODA programme contingency 102 88 -14
Park transformation 294 296 +2
Policing and wider security 475 475 0
Elite and community sports 290 290 0
Venue security 553 553 0
Paralympic Games 95 95 0
LOCOG Park Operations 67 68 +1
Funding available to LOCOG 154 183 +29
Operational provisions 95 117 +22
‘Look’ of London & wider UK 33 33 0
City operations 23 23 0
Domestic & international tourism campaigns 4 4 0
GLA Olympic & Paralympic programmes 13 13 0
PSFP contingency & other savings remaining 425 388 -37
TOTAL 9,298
UNCLASSIFIED 9,298 0

5. ODA ANTICIPATED FINAL COST
 Current AFC is £6,761bn, a reduction of
£16m in the quarter
 Construction virtually complete
 £88m of ODA programme contingency
remaining
UNCLASSIFIED

6. MOVEMENTS IN ODA AFC
 £14m reduction in programme contingency
required to meet risk, reflecting completion and
handover of venues
 £8m reduction in programme delivery costs
due to savings achieved
 £8m reduction in non Olympic Park venues
due to transfer to LOCOG of training venue works
and other savings
 £12m increase on Structures, Bridges and
Highways due to close out process and additional
scope or reconfiguration of existing works
 £11m increase on Olympic Village construction
costs due to commercial contract close out
process and increase in retrofit costs
 £8m increase on other transport operating
expenditure
 Other small increases/reductions across the
programme, incl. a £3m saving on Stadium and
£2m saving on Aquatics Centre
UNCLASSIFIED

7. LOCOG (full breakdown in report)
 Government funding to LOCOG under
Paralympic and Security guarantees. Almost all
rest where LOCOG takes on extra scope (including
transfers from ODA)
 Funding available to LOCOG has increased by
£29m in quarter to £183m, as a result of transfers
from ODA and additional infrastructure works
 £9m of transfer of scope and budget from ODA
to LOCOG for:
- Works to finalise Games-time training
venues (£5m)
- Pre-Games operational security (£4m)
 £20m for extra venues and infrastructure works:
- Finalisation of Olympic Park venues and
infrastructure (£9m)
- Structural resilience of venues (£5m )
- Stadium concession pods and other facilities
(£8m)
- Saving on pre-Games perimeter security
(-£2m )
UNCLASSIFIED

8. OPERATIONAL PROVISIONS
(full breakdown in report)
 Increase of £22m in period to 31 May 2012
 Additional funding of £19m released for
crowd management in Central London and in
Last Mile between transport nodes and
Games venues
 Increase of £3m to provide free public
transport for Games Maker volunteers and
other essential work force during Games time
UNCLASSIFIED

9. THE CHALLENGE
 Olympic Park – Largest
construction project in Europe
 Equivalent to building
Heathrow Terminal 5 twice
over in half the time
 World-class engineering,
design, construction and
project management
 Delivered on time and
within budget
UNCLASSIFIED

10. UK PLC SUCCESS
On time and within budget plus
 Innovative design
 Cutting edge green technology
 Exemplary health and safety
 Jobs and contracts up and
down the country UNCLASSIFIED

11. CONCLUSION
 With less than 50 days to go, the
project is on time and within budget
- £476m of contingency uncommitted
 Massive boost to the global
reputation of UK PLC
 No complacency as the UK is
getting ready to welcome the worldUNCLASSIFIED