London Games offered £225m loan
The European Investment Bank is the long-term lending arm of the
European Union.
Organisers of the London 2012 Games have had a £225m loan from the
public sector approved, which could go towards helping to build the
Olympic Village.
The Olympic Delivery Authority (ODA) said it has yet to decide if it
will accept the public sector European Investment Bank's offer.
The government had hoped the private sector would raise the £1bn needed
for the village's construction.
The ODA has said the recession has made raising private finance
difficult.
In September it said it had secured only half of the money needed for
the athletes' village and media centre in Stratford, east London.
“ We have said that the European Investment Bank could be a funding
source for the affordable housing ”
ODA spokesman
Athletes will stay in the 3,000-home Olympic Village - the biggest
component of the 500-acre Olympic Park - which is being built by
Australian firm Lend Lease.
A spokesman for the ODA said: "As we have made clear in recent months,
discussions on potential funding of the Olympic Village involve both
affordable housing and private sector development.
"We have said that the European Investment Bank could be a funding
source for the affordable housing.
"Alongside this, discussions are continuing with Lend Lease over the
wider Olympic Village development.
"We expect talks to have concluded this summer."
'Harsh terms'
In September ODA chairman John Armitt said it had originally expected to
already have "quite big sums of private sector funding" for the village
and media centre.
"The consequence of what is happening in the markets means that the
availability of funding is more difficult," he said.
"That is not to say that it is not available but, if it is available, it
is available on harsh terms."
After the Games the village will become part of the overall Stratford
City regeneration scheme, which will include a shopping centre and up to
3,300 new homes.
The original budget for the 2012 Olympics was £3.4bn but this was
increased to £9.3bn last year.
The European Investment Bank is the long-term lending arm of the
European Union.
Story from BBC NEWS:
http://news.
Published: 2009/04/10 11:09:14 GMT
Friday, 10 April 2009
harold hoffman: (bet ya WE'LL PICK UP THE TAB AND BET YA THEY'LL INSIST ON EU SECURITY ON UK SOIL
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