Demolition work on the five major Olympic sites have now been completed and the construction work will begin in earnest next year.

 

The Government have set a budget of £9.3 billion for construction, transport improvements and regeneration of the area in East London.

 

The actual running of the Games will come from a separate £2b illion budget funded through television rights, ticket sales, merchandise and sponsorship.

 

Sebastian Coe, chairman of LOCOG, said: "In a project of this scale and complexity, we have to make the most of every day, and we have done just that this year, making excellent progress.

 

"We have made strong progress in our operational planning and, importantly, are engaging and inspiring people all over the UK to appreciate and value the power and magic of sport.

 

"We enter 2008 excited about the prospect of Beijing 2008, and of the beginning of our own Olympiad.

 

"As the eyes of the world turn to London after Beijing, we will be ready, and we won't disappoint."

 

The Olympic Delivery Authority (ODA), the organisation charged with constructing the venues, announced that demolition on the sites of the biggest venues - the Olympic Stadium, the Aquatics Centre, the Velopark, as well as the Olympic Village and the main press centre/international broadcasting centre - has been completed.

 

On the Olympic Park site as a whole, more than two-thirds of buildings have been demolished and half the site cleared of debris.

 

ODA chairman John Armit said: "This has been a year of solid progress on the ground in the preparations for the 2012 Games.

 

"With such a huge project it was essential we got off to a good start.

 

"We have done that and are exactly where we planned to be at this stage.

 

"Big Challenges lie ahead but we have put in place strong foundations for the future.

 

"In 2008, we will change gear as we enter the start of the `Big Build' phase with construction beginning in earnest in the summer."

 

The International Olympic Committee have also been pleased with the progress and their co-ordination commission delivered a positive report to the body's executive board last week.