The Olympic Delivery Authority (ODA) and Lend Lease claimed that this on track to deliver first-class accommodation for athletes and officials during the London 2012 Games, and leaving a lasting legacy of thousands of new homes in the heart of East London . 

 

But the Olympics Shadow Minister Hugh Robertson criticised the Government after the Evening Standard claimed that the taxpayer will have to pay £422 million because a shortfall in private funding due to the credit cruch.

 

Robertson told the Evening Standard: "The Government and the ODA announced a figure of £492 million for the village and the media centre in January, well after the credit crunch had taken effect, so it is staggering that this figure has already risen so markedly.

 

"Given that all the major sports infrastructure has now overrun its budget, it is difficult not to conclude that the presence of such a large contingency fund is simply encouraging cost inflation."

 

Paul Deighton, the chief executive of London 2012, told insidethegames last week that the public purse would be reimbursed after the Games when the flats in the Village were sold off.

 

The Village will provide 17,000 beds for athletes and officials during the Games and 7,500 in the Paralympic Games.

 

After 2012, it will leave the legacy of up to 3,500 new homes, many of which will be affordable, with the new communities supported by new parks, open space, community facilities and transport links, the ODA claim.

 

Piling works are now underway on the Village site involve inserting concrete columns up to 24 metres in length into the soil to reinforce the ground where the first blocks will sit.

 

The piling works will form the permanent foundations for the first blocks of the Olympic Village allowing works on the concrete substructure to start later in the summer.

 

David Higgins, the ODA chief executive said: “The start of construction on the Olympic Village is a significant milestone and maintains the progress and momentum of the project as we work through the financial arrangements.

 

"Given the challenging economic environment, we are in detailed discussions about the level of public investment in the Olympic Village.

 

"Clearly this will be a world-class development capable of delivering returns on any investment when the homes are sold after the Games.

 

“The Olympic Village is about more than just housing athletes during 2012, it will be an integral part of much wider regeneration, delivering new homes and community facilities in the heart of east London to ensure that the legacy of 2012 lives on for generations.”

 

Sebastian Coe, the chairman of London 2012, said: “The Olympic Village is a key part of the project. It is a haven for athletes at Games-time and a good, comfortable environment helps them prepare to compete well, in the most important competition of their lives.

 

"Athletes’ needs are at the heart of all our plans. It is therefore very encouraging to see the Olympic Village making good progress.

 

“It is a compact Village and it is essential that we continue to work closely with the ODA and Lend Lease in developing the athletes’ accommodation during the Games to ensure that the most is made of all areas.

 

"The latest plans for the Olympic Village were recently presented to the IOC’s Coordination Commission and they were well received.”

 

Lend Lease Europe chairman, Nigel Hugill, said: “We were all quietly very determined to have cranes operating well before the start of the forthcoming Games in Beijing .

 

"Foundation piling for the first block of the Athletes' Village is now well underway.

 

“More than 15 of the brightest architectural practices from the UK and mainland Europe are now commissioned.

 

"They are working flat out with our own delivery teams to a clear brief which provides for substantial offsite prefabrication.

 

"As well as what could ultimately be up to 3,500 high quality homes, the designs include a major new health facility and a brand new school for 1,800 local 4-18 year olds.

 

"We are far from complacent but we are certainly content with delivery progress to date.”

 

Olympic Village Facts & Figures

 

· 28 buildings on the Olympic Village site have been demolished including the largest building on the Olympic Park site - the former Frigoscandia factory - and the tallest buildings on the site - the two 12 storey former University of East London buildings

 

· The Olympic Village will provide 17,000 beds for athletes and officials during the Olympic Games and 7,500 in the Paralympic Games

 

· After the Games up to 3,500 new homes will be left, with 30 per cent as affordable housing

 

· Over 10 hectares of open space, including public squares and five parks will be created

 

· A new Primary Healthcare Centre and an Academy School will be built for use by legacy communities and will initially be used for Games time operations during the 2012 Games

 

· New transport facilities will be built including new bus routes, cycle lanes and pedestrian routes

 

The full article in the Evening Standard can be read at http://www.thisislondon.co.uk/standard/article-23489741-details/Taxpayers face £420m bill as Olympic builder struggles to raise cash/article.do.