Olympic projects get £461million bail-out
The London Olympics have been granted a £461million bail-out by the government following a short-fall in private funding.
The lack of outside investment has forced ministers to use emergency funds to cover the construction of the athletes village and media centre.
Ministers agreed to pump £326million into the Olympic Village, and pay £135million towards the International Broadcast and Main Press Centres, which will now cost £355million to build.
Nearly a quarter of the £2billion contingency fund for the project has now been used, with the 2012 games still more than three years away.
Olympics minister Tessa Jowell said: "The Village and media centres are absolutely essential to a successful London Games with a real lasting legacy.
"With private sector funding now much more difficult to secure because of the global economic downturn, it is right that we take steps to safeguard these projects.
"The extra funds we have allocated today come from existing contingency funds within the overall £9.3 billion budget.
"Lower than anticipated construction inflation and good progress across the project has reduced risks, meaning that the overall budget is unchanged and enough contingency funds remain.
"We are determined to deliver the games within budget.
"The increased public investment in these projects also means that the public purse will receive a greater share of receipts when they are sold after the Games."
The Hackney-based media centre - which is expected to house 20,000 journalists and technical staff from around the world during the games - will be built as a permanent structure, but the public will now foot the entire bill. Ministers assured taxpayers that the public sector would receive all revenues from its sale after 2012.
The Olympic Delivery Authority is continuing to negotiate with banks and developer Lend Lease to secure private investment, and are holding talks with Registered Social Landlords about the social housing provision that will help fund the project.