22 Jan 2009

British government bails out Olympic projects

10:10 am on 22 January 2009

The British government released contingency funds on Wednesday to keep two projects on track for the 2012 London Olympics.

Fund for both the Olympic village and the international broadcast and media centre has been affected by the international credit crunch.

The government said Stg461 million ($US633.6 million) would be injected into those two projects with another Stg35 million for increased costs on projects such as an aquatics centre and the Olympic stadium.

Olympic Minister Tessa Jowell said in a statement that the village and media centres "are absolutely essential" to a successful Games in London.

The extra money comes from a contingency fund which forms part of the overall Stg 9.3 billion budget for building the venues and infrastructure.

Around 17,000 athletes will be housed in the village during the Olympics and more than 6000 during the Paralympics. The apartments will be sold afterwards.