London Latest - Budget Warning; Sculpture Unveiling; Waste Goals on Track

London 2012 Budget Warning

The British government's financial watchdog warns that unforeseen problems are placing fresh demands on contingency funding to deliver the London Olympics within the $14 billion budget.

The public accounts committee said in a report released Wednesday that construction across the Olympic project was on schedule.

"What's worrying is that the financial position is tight," said the committee's chair Edward Leigh MP.

The Olympic Delivery Authority (ODA) has $1.9 billion contingency remaining from the original $4.2 billion fund, most of which is earmarked for predicted risks. But the committee warned that it would leave only $294 million 'headroom'.

"If there is any chance of this [$14 billion] budget being exceeded, then we require the Department to tell us immediately," Leigh said.

The report noted that "not all of the known risks will materialize, but new cost pressures continue to emerge". It pointed to previously unplanned work to secure and maintain the Olympic Park, between construction completion and handover to the Olympic Park Legacy Company, which could require a further $242 million of the contingency.

"Staying within the budget also depends on receiving some £600 million receipts from the Olympic Village development. So the position is tight, with no room for complacency and limited flexibility to respond to new problems as the Games approach," the report said.

The committee also urged the London 2012 organizing committee (LOCOG), which is self-financing partly through ticket sales and merchandising, to make clear how it "intends to balance the need to raise income from ticket sales with its commitment to the principle that tickets be affordable to the general public".

Iconic Visitor Attraction for Olympic Park

London Mayor Boris Johnson today unveiled the artist and design of a spectacular new visitor attraction destined for the Olympic Park.

Turner Prize-winning artist Anish Kapoor has been commissioned to deliver the artwork costing $29 million, which is to be called "The ArcelorMittal Orbit".

The 115m sculpture, set to be Britain's largest piece of public art, will consist of a continuous looping lattice of tubular steel. It will be 22m taller than the Statue of Liberty in New York and offer unparalleled views of the entire 250 acres of the Olympic Park and London’s skyline from a special viewing platform.

The sculpture was commissioned by Johnson and Olympics minister Tessa Jowell. It is part-funded by steel magnate Lakshmi Mittal, chairman and CEO of ArcelorMittal, which will contribute $24 million. The London Development Agency will provide the rest of the finance.

Today's announcement coincides with the news that ArcelorMittal is to be a tier two sponsor of the London Olympics.

Jowell said: "Alongside the Olympic stadium and aquatics centre, Anish Kapoor’s brilliant design will be like to honey to bees for the millions of tourists that visit London each year."

London's mayor said the sculpture would become an "internationally acclaimed family attraction".

"Anish Kapoor's inspired art work will truly encapsulate the energy and spirit of London during the Games and as such will become the perfect iconic cultural legacy," he said.

The attraction will stand in the southern part of the Olympic Park between the stadium and aquatics centre and be open in time for the 2012 Olympics. Post-Games, the Olympic Park Legacy Company will take ownership and run the visitor attraction.

Report: Games on Track for Waste Targets

The independent agency monitoring waste production for the London Olympics says LOCOG is on track to meet its goals for low waste.

The Commission for a Sustainable London issued a report praising LOCOG’s work saying the Games are on track to be environmentally friendly.

Shaun McCarthy, Chair of the Commission, said in a statement: "The good news is that the ODA and LOCOG are both working towards ambitious targets. If achieved, this ambition and dedication will make the 2012 Games an exemplar of how to run a sustainable event and will set brand-new green standards for future Games.Our concerns are that while all this good work is going on inside the venues, waste in the areas immediately surrounding the venues could be forgotten about. There needs to be a consistently high standard and this means more collaboration between stakeholders and organisers."

According to the report, ODA is exceeding its goal of recycling 90 percent of demolition waste and is using nearly double the amount of recycled products as predicted.

LOCOG set a goal of recycling 70 percent of all waste generated before and during the Games and the commission said LOCOG is developing plans to implement the goal.

The biggest concern in the report is the live sites. The report said the sites will need waste standards that are just as rigorous as the ones imposed for other venues if London’s Olympic organizers hope to achieve their goals.

Contracts Still Available

ODA Chairman John Armitt is urging East Midlands businesses to "seize the moment" with around 100 direct building contracts remaining.

Armitt is meeting with several businesses in East Midlands on Wednesday and Thursday to promote ODA projects. ODA has worked with more than 10,000 business across the United Kingdom to prepare and build Olympic projects.

"Businesses of all types and sizes are helping to deliver the London 2012 Games," Armitt said. "While the bulk of the ODA's direct contracts have now been awarded, there are still opportunities through the UK-wide supply chain and with LOCOG. Companies should 'seize the moment' and sign up to CompeteFor, the online business dating agency, to be part of this once in a lifetime opportunity."

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With reporting from Mark Bisson, Ed Hula III and Sam Steinberg.