London 2012 Olympics budget remains stable

By Avril Ormsby

LONDON (Reuters) - Although extra contingency money will be allocated for security at the London 2012 Olympics the overall budget has not gone above the 9.3 billion pounds announced in March, the government said on Monday.

Olympics Minister Tessa Jowell confirmed an additional 238 million pounds of contingency money would be set aside for security during the Games in London's East End on top of the 600 million pounds announced in March.

The government released the figures as part of its most detailed financial breakdown of costs, following a request in July by the financial watchdog, the National Audit Office (NDA), to draw up a detailed plan for controlling the budget.

The baseline budget, to be met by the public sector funding package, remains at 6.1 billion pounds, including tax but excluding a contingency pot of two billion pounds, with the total government funding package still at 9.325 billion pounds, said Jowell.

"The budget is consistent with the funding package I outlined in March," she said in a statement to the House of Commons.

"Months of careful scrutiny have confirmed the Olympic Delivery Authority (ODA) has the money it needs to deliver the venues and infrastructure for a terrific summer of sport, as well as leaving a long-term legacy for one of the most deprived parts of the country."

The contingency was confirmed as enough to cover the risks at both project and overall levels, she said.

However, the financial update showed the ODA, which oversees construction of Olympic venues and infrastructure, had been given all the 500 million pounds earmarked for initial contingency to cover costs on early projects.