The Olympic Delivery Authority has said the problem of securing funding for the 拢1.2bn Olympic village has been exacerbated by the turmoil in the financial markets over the past week, write Sarah Richardson and Dan Stewart.
John Armitt, the chairman of the ODA, said: 鈥淭here was a certain amount of finance available six months ago, less two months ago and there was probably even less last week. Getting any form of loan from the private sector at the moment is very difficult.鈥�
The ODA last month struck an interim deal with Lend Lease on the village, enabling the firm to act as contractor without an equity stake for an interim period until a final funding agreement can be reached, which would see Lend Lease part-fund the project.
However, the tightening of the financial markets and reluctance to lend, particularly to the housing sector, has thrown doubt over Lend Lease鈥檚 ability to finance the scheme.
Armitt, who was speaking to 黑洞社区 at a fringe event at the Labour conference, said the ODA was still forecasting a deal 鈥渁round the end of the year鈥�.
He said the ODA believed it had secured 鈥渕ore than half鈥� of the necessary funding for the project.
The news came as the Olympic minister Tessa Jowell ruled out the possibility of the government underwriting the athletes鈥� village instead of Lend Lease.
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