The Mayor's adviser David Ross recently warned that a "perfect storm" of global financial issues, the terror threat and the rising cost of raw materials could break the £9.3 billion budget. Raising private finance for the athletes' village looks certain to force Games chiefs to raid their £2.7 billion contingency fund. The forecast cost of venues has risen this year by £106 million, but this was offset by savings on bridges and roads in the Olympic Park, leading to a forecast net increase of £16 million. Latest figures will be published later this month in the Government's half-yearly report.
VILLAGE
The £1 billion athletes' village faces a cash crisis as Australian developer Lend Lease struggles to raise its half-share in the public-private scheme. Lend Lease has been hit by the credit crunch and falling property values, both of which hamper its cash-raising efforts. Meanwhile the Olympic Delivery Authority has cut the number of apartments for the 17,000 athletes and officials from 4,200 to 3,500 to save cash, which means more athletes per room during the Games.
MEDIA CENTRE
The ODA insists "significant" private sector investment will go into the £400 million media centre. Details of a deal with developers Carillion/Igloo remain unclear following reports the consortium has struggled to raise its £150 million share of the funding. Under the public-private model, the developers will effectively lease the building in Hackney to Olympics chiefs for the Games and sell it off as a "media hub" after 2012.
STADIUM
The budget for the 80,000-capacity venue is forecast to rise again to £525 million - more than double the 2004 estimate. Work on the foundations began ahead of schedule last month. But the search for a post-Games tenant to pay maintenance bills continues, with Leyton Orient FC and a rugby league club still in talks. Meanwhile, if a private sponsor can be found, a city academy specialising in sport will be housed in the stadium. The National Skills Academy, the University of East London and the English Institute of Sport are all possible tenants.
AQUATICS CENTRE
The budget has spiralled from an estimate of £74 million to £303 million, including the cost of a bridge linking the pool complex to Stratford town centre. Balfour Beatty will begin foundation work on the site next month. Games chiefs are working on plans for the pool to be retrofitted with booms and moveable floors so it can be put to a variety of uses after the Games. Meanwhile local councils are in talks to help fund a £24 million leisure pool complete with slides and flumes on the temporary water polo site next to the main complex.
