RSS FeedLondon 2012 Grapples With Economic Downturn
The government is to allocate £461 million of emergency money to keep two crucial developments on track in the run up to the London 2012 Olympic Games. The Olympic Village will receive £326 million while two media centres will get £135 million. The money comes from a £2.7bn contingency fund which is part of the London 2012 budget.
Finance for the Village and the media centres looked in danger because of the impact of the downturn on, explained Olympics Minister Tessa Jowell when she released the cash: “The Village and media centres are essential to a successful London Games. With private sector funding more difficult to secure, it is right that we safeguard these projects.”
The impact of the downturn is not just limited to London 2012′s suppliers. Another setback has been the news that tier one sponsor Nortel has filed for bankruptcy protection. Nortel, which signed up as 2012′s network infrastructure supplier, now faces a battle to survive. It is not yet clear to what extent its financial problems will affect its ability to pay its fee or complete the job it has agreed to undertake.
• It hasn’t all been bad news, however. January also saw the London 2012 Organising Committee sign up Adecco as official recruitment services supplier. A tier two supporter, Adecco is believed to be paying around £20 million.
