Britain's Olympics chiefs must keep a "tight control over costs and time" in its preparations for the 2012 Games in the face of a rocky economic climate and changing security demands, according to MPs.
As London 2012 prepares for the big handover of the Olympics from Beijing next month the Public Accounts Committee (PAC) reviewed plans regarding the delivery of the project and also for clinching sporting success.
Firm leadership and an "eagle ey
e" is needed to ensure that London's £1 billion contingency is not exceeded because "arrangements to manage the whole programme and the associated risks are not yet in place," according to PAC chairman Edward Leigh.
Even with assurances from the Department for Culture, Media and Sport (DCMS) that the present £9.3 billion public funding budget for the Games will not be exceeded, the PAC were cautious.
Mr Leigh said: "In the light of growing uncertainties, the Department (DCMS) should keep an eagle eye on potential demands on the £1 billion of contingency funds which have not yet been earmarked."
The PAC notes that the Olympic Delivery Authority (ODA), in charge of Games build and infrastructure, has not yet reached agreement with Lend Lease, its preferred developer on building the Olympic Village.
By March 2008, the ODA was forecasting total spending of £7,111 million, £16 million more than its November 2007 baseline of £7,095 million. The loss of competitive tension in procurement of the main stadium and aquatics centre has contributed to the £106 million increase in forecast venue costs, with offsetting decreases in the costs of site preparation and infrastructure.
The DCMS is confident that £675 million from the National Lottery will be repaid through land sales after the Games and that the project will stay within budget.
But the Government is not even "out of the starting blocks" in its drive to raise £100 million for elite sport from the private sector to help boost Britain's medal chances in 2012, Mr Leigh said.
The PAC stated there is "a risk" that the £100 million will not be met and, in turn, could hit London 2012's aim to boost sports participation. This was an important pledge which underpinned London's bid to host the Games.
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