GOE QUARTERLY REPORT – June 2012Jeremy Hunt MPSecretary of State for Culture, Olympics, Media & Sport

Hugh Robertson MPMinister for Sport & Olympics

Dennis HoneChief Executive, Olympic Delivery Authority

David GoldstoneDirector of Finance, Government Olympic Executive

13 June 2012UNCLASSIFIED

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JUNE 201244 days to Olympic Games Opening Ceremony

Construction virtually complete £476m of uncommitted contingency Successful test events A great Jubilee weekend Country embracing Torch Relay

In a strong position but no complacency as challenges remain

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OVERALL 2012 BUDGET POSITION(All figures to nearest £m)

31 Dec 2011 (£m)

31 Mar 2012 (£m)

31 May 2012 (£m)

ODA programme contingency

102 88 88

PSFP contingency and other savings

425 403 388

Uncommitted contingency

527 491 476

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OVERALL 2012 BUDGET POSITION (All figures to nearest £m)PSFP programme 31 Dec 2011

forecast (£m)31 May 2012 forecast (£m)

Variance from 31 Dec 2011 to 31 May 2012 forecast (£m)

ODA, incl. 6,777 6,761 -16

ODA programme contingency 102 88 -14

Park transformation 294 296 +2

Policing and wider security 475 475 0

Elite and community sports 290 290 0

Venue security 553 553 0

Paralympic Games 95 95 0

LOCOG Park Operations 67 68 +1

Funding available to LOCOG 154 183 +29

Operational provisions 95 117 +22

‘Look’ of London & wider UK 33 33 0

City operations 23 23 0

Domestic & international tourism campaigns 4 4 0

GLA Olympic & Paralympic programmes 13 13 0

PSFP contingency & other savings remaining 425 388 -37

TOTAL 9,298 9,298 0

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ODA ANTICIPATED FINAL COST Current AFC is £6,761bn, a reduction of £16m in the quarter

Construction virtually complete

£88m of ODA programme contingency remaining

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MOVEMENTS IN ODA AFC £14m reduction in programme contingency required to meet risk, reflecting completion and handover of venues

£8m reduction in programme delivery costs due to savings achieved

£8m reduction in non Olympic Park venues due to transfer to LOCOG of training venue works and other savings

£12m increase on Structures, Bridges and Highways due to close out process and additional scope or reconfiguration of existing works

£11m increase on Olympic Village construction costs due to commercial contract close out process and increase in retrofit costs

£8m increase on other transport operating expenditure

Other small increases/reductions across the programme, incl. a £3m saving on Stadium and £2m saving on Aquatics Centre

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LOCOG (full breakdown in report)

Government funding to LOCOG under Paralympic and Security guarantees. Almost all rest where LOCOG takes on extra scope (including transfers from ODA)

Funding available to LOCOG has increased by £29m in quarter to £183m, as a result of transfers from ODA and additional infrastructure works

£9m of transfer of scope and budget from ODA to LOCOG for:

- Works to finalise Games-time training venues (£5m)- Pre-Games operational security (£4m)

£20m for extra venues and infrastructure works:- Finalisation of Olympic Park venues and infrastructure (£9m)- Structural resilience of venues (£5m )- Stadium concession pods and other facilities (£8m)- Saving on pre-Games perimeter security (-£2m )

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OPERATIONAL PROVISIONS (full breakdown in report)

Increase of £22m in period to 31 May 2012

Additional funding of £19m released for crowd management in Central London and in Last Mile between transport nodes and Games venues

Increase of £3m to provide free public transport for Games Maker volunteers and other essential work force during Games time

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THE CHALLENGE Olympic Park – Largest construction project in Europe

Equivalent to building Heathrow Terminal 5 twice over in half the time

World-class engineering, design, construction and project management

Delivered on time and within budget

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UK PLC SUCCESSOn time and within budget plus

Innovative design

Cutting edge green technology

Exemplary health and safety

Jobs and contracts up and down the country

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CONCLUSION With less than 50 days to go, the project is on time and within budget- £476m of contingency uncommitted

Massive boost to the global reputation of UK PLC

No complacency as the UK is getting ready to welcome the world