ODA admits raiding Olympic contingency fund
Last week, the ODA and developer Lend Lease unveiled the latest images of the village, and gave a progress update on the piling work that started back in June.
The move to crack open the contingency fund came after Lend Lease failed to raise its half of the £1 billion needed, due to the credit crunch.
A spokesman for the ODA said: 'Work on the village continues on schedule and piling has been completed on the first three blocks.
‘£95 million of interim funding has been allocated to the ODA from contingency to enable building to progress.’
He added: 'Discussions on long-term funding arrangements are continuing in what is clearly a very difficult economic environment.’
It is understood that a meeting has been set up between the ODA and Lend Lease at the end of the year to make a decision on the funding.
ODA chairman John Armitt has already admitted that the government could be forced to fund the entire £1 billion, unless the liquidity crisis in the financial markets improves.