By Mike Rowbottom in London

February 9 - As the Olympic Delivery Authority (ODA) looks forward to what its chairman, John Armitt, describes as its "toughest year", with building work on the Olympic site reaching maximum complexity, further rises in the Anticipated Final Cost (AFC) of the project have been announced.



In its quarterly figures, the ODA reports a rise of £21 million since November, and flags up the likelihood of an additional expense in the coming year of between £110 million and £160 million to cover its new role in taking on overall responsibility for venue security and the Olympic Park operation - a role that was decided upon by the Olympic Board.
 
The latest rise in the AFC has been partly due to the slump in property prices.

The ODA, which had hoped to gain around £250 million from the post-Games development of Stratford City, has now revised that figure to £100 million.
 
But that projected loss has been offset by savings worth more than £100 million through lowering the cost of the Main Press Centre and the International Press Centre and a reduction in forecast risks.
 
So while the AFC has risen in the last quarter from £7.241 billion to £7.262 billion, the equivalent of 0.3 per cent, the ODA remains confident of delivering its programme for the 2012 Games on time and within its £8.1 billion overall budget.
 
Of the overall remaining contingency money of £1.25 billion, the ODA expects to spend £772 million on its programmes.

The remaining £478 million will be retained as Funders’ Group contingency, to cover unexpected costs such as changes in Government policy or tax levels.
 
"As we enter the busiest and most exciting phase of the Olympic project so far this report shows we are still on time and still on budget," said Olympics Minister Tessa Jowell.
 
The Big Build is now over halfway completed, with key achievements in the last year including the completion of the Velodrome steel structure, the Aquatics Centre roof, the first three Olympic Village blocks and the main structure of the main Olympic Stadium.
 
Now, however, the building operation becomes more complex as a total of around 60 contractors move it.

"The number of workers on site will rise to around 10,000, creating a huge challenge both in terms of logistics and Health and Safety considerations.

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