1. 2012 Olympic Games and Paralympic Games

2. Department for Culture, Media and Sport Improving the quality of life for all Agenda Key priorities and responsibilities Funding and Finance issues ODA and the Build programme Delivering a lasting legacy Role of private finance

3. Department for Culture, Media and Sport Improving the quality of life for all Key priorities Funding –delivering the build on budget, to required outcomes; ensuring LOCOG is self-financing. Building – delivering a project twice the size of Terminal 5 in half the time, with a fixed deadline. The equivalent of building a new secondary schools every four days. Staging - Hosting two of the world’s largest sporting events, which rely on substantial public sector services operating at optimum efficiency. Legacy – Deliver what we’ve promised, across Government and across the UK.

4. Department for Culture, Media and Sport Improving the quality of life for all Who is responsible for what? Mayor - signatory of the Host City contract ODA – Building the infrastructure and venues LOCOG – staging the games LDA – acquiring the land, and owning legacy use of the Park Government – guarantor of funding, security etc GOE - client to delivery bodies HO - responsible for security DCMS, DCLG and DfT contribute to funding X- Government responsibility for UK wide legacy

5. Department for Culture, Media and Sport Improving the quality of life for all March 07 Funding Package Total funding package Non ODA costs Policing and security Other Olympic Max. available for ODA ODA base costs Contingency to be allocated Total ODA Unallocated Contingency Balance, max. available for ODA £9.325bn £1.226bn - £600m (+£238m contingency) - £388m £8.099bn £5.590bn £500m £6.090bn £2.009bn £8.099bn

6. Department for Culture, Media and Sport Improving the quality of life for all Sources of funding Original £m Lottery 1,500 London 875 HMG 1,044 TOTAL 3,419 Additional £mTotal £m 6752,175 3001,175 4,9315,975 5,9069,325

7. Department for Culture, Media and Sport Improving the quality of life for all Normal responsibilities, on an abnormal scale Managing cash flow Over £4m per day at peak Multiple sources of funding, all with own constraints –3 Govt departments, capital –2 Lottery funders, one revenue and one capital –2 Local Authorities capital All constrained by when cash available Accountabilities – Continuous cycle of NAO reviews and PAC reports – Continuous scrutiny from OGC, Select Committee, PQs etc – Unrelenting press and public interest from start to finish

8. Department for Culture, Media and Sport Improving the quality of life for all ODA - November 07 Baseline Provides: Agreed baseline scope and budget, with Aligned risks and timetable, which will be Basis for future progress monitoring and reporting, and Risks fully assessed, allocated and quantified Base costs in line with March announcement (£6,090m) Contingency allocated in line with March announcement (£500m) £2bn of Contingency available, exceeds value of assessed risks 75p in every £ leaves regeneration benefit

9. Department for Culture, Media and Sport Improving the quality of life for all Build - Olympic Park Main buildings Borough boundaries Athletes’ village Aquatics Centre Velopark Media Centre Olympic Stadium Main buildings Waltham Forest Newham Hackney Tower Hamlets Stratford International

10. Department for Culture, Media and Sport Improving the quality of life for all Main Olympic Park Venues Olympic Stadium Olympic Village Aquatics Centre 80,000 seats – will host opening and closing ceremonies and athletics events Commitment to deliver a sustainable athletics and community sports-for-all legacy (inc 25,000 seats) 17,500 seat Zaha Hadid design to mark the entrance to the Park 2,500 seat legacy venue combining elite and community use £3bn private sector development; ODA contribution Will house up to 17,000 competitors and 1,000 officials in Games time In legacy, 4,000 homes, at least 30% will be affordable housing IBC/MPC Site is 1.5 times the size of Canary Wharf tower Expected to be in excess of 5,000 job opportunities with a vibrant and economically sustainable mixed-use development.

11. Department for Culture, Media and Sport Improving the quality of life for all Delivering a lasting legacy Government’s 5 legacy promises: Making the UK a world-leading sporting nation Transforming the heart of East London Inspiring young people to take part in local volunteering, cultural and physical activity Making the Olympic Park a blueprint for sustainable living Demonstrating the UK is a creative and inclusive place to live, visit and do business Lasting benefit from investment in Olympic Park – 75p in £ Legacy Action Plan published June 2008

12. Department for Culture, Media and Sport Improving the quality of life for all Role of Private Sector Finance ODA programme Projects that have long term commercial use potential Sufficient certainty at time procurements needed to commence Leveraging in further investment LOCOG – self financing LDA – development returns

13. Department for Culture, Media and Sport Improving the quality of life for all Private sector finance in ODA programme Village Over 3000 residential units Over £1bn construction cost ODA financing site infrastructure, and benefits from profit share Private (debt and equity) funding of “vertical build”, against Future (deferred) residential property sale receipts Property market/credit crunch issues….

14. Department for Culture, Media and Sport Improving the quality of life for all Private sector finance in ODA programme International Broadcast Centre/Main Press Centre 120,000 m2, to house world’s broadcast and press media Transformed in legacy into new centre of employment and commercial opportunities Intended to attract significant new business to the area Centred on creative industries ODA contributing to developer’s costs, with long term development opportunities managed and financed by developer

15. Department for Culture, Media and Sport Improving the quality of life for all Private sector finance in ODA programme Utilities Private sector funding of energy investment with long term legacy opportunities – Future developers will tap into their services, to generate revenue stream For water, gas, electricity networks, ODA build and then will sell concessions with long term revenue opportunity – 6km of water pipe – 6.5km of gas pipe –18km of electrical ducting

16. Department for Culture, Media and Sport Improving the quality of life for all Olympic Park legacy – leveraged investment Brownfield land Housing Units Permanent Jobs created Private sector investment Transport improvements Community and sporting facilities 250ha remediated,soil cleaned, 220 buildings demolished Up to 3,400 from village Further 5,000 from future developments Over 7,000 from IBC/MPC Over £7bn leveraged investment To stations, rolling stock, capacity 5 permanent venues, new urban park, 110ha public

17. Department for Culture, Media and Sport Improving the quality of life for all LOCOG Budget Revenue Other sources Local sponsorship Broadcast – IOC contract Ticket Sales TOP Sponsorship License income Paralympic Subsidies Expenditure reserve Venues Games Workforce Technology Transport Royalties etc Other £2.0bn

18. Department for Culture, Media and Sport Improving the quality of life for all LDA Development Land LDA borrowed to purchase land in the Olympic Park Prudent assumptions of land sale values, from development sales, to repay debt Mayor/Government MoU agreed profit share for receipts beyond debt payment Profit share repays lottery £675m additional contribution c£1.8bn receipts required, in line with trends over recent years, would repay lottery LDA legacy client role to determine long term viable usage of park and venues – Master Planning, Business Planning underway

19. Department for Culture, Media and Sport Improving the quality of life for all Conclusion Large individual projects Privately financed £2bn start up business Development opportunities, that will repay borrowing that secured land, and repay lottery Long term sustainable Olympic Park to be developed Leveraged investment estimated at £7bn Public and private sectors jointly delivering Olympic objectives