Memorandum submitted by the London Organising
Committee for the Olympic Games (LOCOG)
BRIEFING
Introduction
The London 2012 Olympic Games will take place
between 27 July and 12 August with the Paralympic Games taking
place between 29 August and 9 September. More than 9 million tickets
will be on sale across both Games with over 4 million tickets
at £20 or less, over 6 million at £30 or less and over
7.5 million at £50 or less (2004 prices).
Delivering the 2012 Games
Responsibility for the preparation and delivery
of 2012 lies with the two organisations outlined below and is
based on the structure that delivered the successful 2000 Sydney
Games:
LOCOG
The London Organising Committee of the Olympic
Games (LOCOG) is responsible for planning, organising and staging
the 2012 Games and is the successor of London 2012, the organisation
which led London's successful bid. Seb Coe is LOCOG's Chairman
and Keith Mills its Deputy Chairman. LOCOG is recruiting a CEO
and hopes to make an appointment by the end of 2005.
LOCOG is almost entirely privately financed
with an operational budget of £1.5 billion (2004 prices),
drawn from a combination of IOC broadcast rights, the Olympic
Partner (TOP) programme, ticket sales, LOCOG sponsors and licensees.
LOCOG will be the central point of contact with the International
Olympic Committee (IOC).
ODA
The Olympic Delivery Authority (ODA) will be
created by the London Olympics Bill which is currently progressing
through Parliament. It will be responsible for ensuring delivery
of the venues and infrastructure for the Games. The ODA's Olympic
specific works will be financed from the public funding package
of £2.375 billion (outturn prices) which is separate and
distinct from the LOCOG budget. The ODA will be co-located with
the LOCOG in shared offices in Canary Wharf. Prior to the ODA's
formal establishment in early 2006, the London Development Agency
(LDA) is acting as interim ODA.
Olympic Board
Finally, an Olympic Board will also exist comprising
the Olympic Minister, the Mayor of London and the Chairmen of
the British Olympic Association and the LOCOG. The Board will
co-ordinate the work of LOCOG, Government and the ODA.
LEGACY
Key facts
Sport
— Five facilities to remain in Olympic
Park after the Games: Olympic stadium (reduced to 25,000 seats),
aquatics centre, velopark, hockey centre and indoor arena.
— A new "London Olympic Institute"
will be housed in the stadium to provide a sporting academy, training
facilities, sports medicine and accommodation for domestic and
international athletes.
— 25 year business plans for each Olympic
Park legacy venue are being prepared that maximise international
competition and community use.
— Four arenas re-located across UK
after Games.
— All equipment used during Games re-distributed
across UK sports clubs and charities after Games.
— Five temporary swimming pools relocated
across UK after Games.
Non-sport
— Largest new urban park in Europe
for 150 years.
— 11-12,000 new jobs in the Olympic
Park alone after the Games.
— Athletes' village converted into
3,600 apartments after the Games, many available for key workers
such as teachers and nurses.
— Media and press centres will become
a hub for creative industries in east London after the Games.
— Olympic village Polyclinic will be
converted into a nursery, primary and secondary school and lifelong
learning centre for local communities.
Overview
London 2012 has a clear legacy vision that will
make a major difference to London, the United Kingdom and the
Olympic Movement by:
— transforming the physical and economic
landscape in the poorest and most deprived areas of London;
— inspiring a new generation to greater
sporting activity and achievement;
— fostering a healthy and active nation;
and
— supporting the IOC and Olympic Movement
by enhancing the Games.
Background
Legacy for sport
New permanent venues are only being built where
a clear need has been identified and strong business plans have
been established. The Olympic Park will be the principal location
for the Games in London and include nine competition venues. Following
the Games, five of these will remain and provide much needed competition
and training facilities to elite athletes, grassroots sport and
the local community. These facilities form the London Olympic
Institute and will focus on promoting the Olympic ideals.The facilities
to be retained in the Olympic Park are:
— The Olympic Stadium will be
reconfigured to a 25,000 seat athletics stadium including a House
of Sport as part of the Olympic Institute, offering training and
sports science/medicine facilities for competitors, and offices
and support services for national sports federations and other
sports bodies.
— The Aquatics Centre will be reconfigured
to a capacity of 3,500 seats after the Games, retaining two 50
metre pools, a 25 metre diving pool and fitness centre to accommodate
elite, development and local club/community uses. Operational
funding will be provided by partners including the University
of East London and Lee Valley Regional Park Authority.
— Velopark will become a unique
cycling complex that includes the Olympic Park Velodrome, reconfigured
to 3,000 seats, a road track, competition and recreational BMX
tracks and a mountain biking training area for use by all levels
of cyclists, operated by Lee Valley Regional Park Authority.
— The Hockey Centre will be
reconfigured to provide significant competition and training facilities
for hockey at all levels, with 5,000 seats retained around the
main pitch for use at all levels, operated by a not-for-profit
company.
— The Olympic Park Arena 3 will
be retained as an indoor sports centre and will become a training
and competition venue and a regional home for indoor sports with
flexible seating for up to 10,000 people.
Economic and Community Benefits
The Lower Lea Valley in East London, one of
the city's poorest and most disadvantaged areas will be significantly
regenerated by:
— The creation of thousands of new
jobs in growth sectors. An estimated 7,000 new jobs will be created
in the construction industry as a result of the Games and c 12,000
new jobs as a result of the legacy development.
— Provision of modern health and education
infrastructure, including two primary schools and a secondary
school, alongside high quality sports facilities that will be
accessible to all.
Legacy for Environment
The creation of 127 hectares of new urban parkland
will form the biggest urban park created in Europe for over 150
years—a Hyde Park for the east of London. Polluted waterways
will be restored and wetlands conserved.
Legacy for Education and Culture
A London Games will create an educational and
youth programme for the years leading up to the 2012 Games. Initiatives
include:
— an Athlete Ambassador Programme for
schools and community groups to personify the values of the Olympic
ideal;
— develop a range of educational materials
based upon Olympic Values to support the National Curriculum;
and
— a Young Ambassadors' Programme focused
on the most deprived areas of the UK to help young people develop
language skills and equip participants to serve as volunteers.
FUNDING
LOCOG operational budget—$2.5 billion (£1.5
billion) 1, 2
The operational budget of the Olympic Games
and Paralympic Games covers the operating costs of running the
Games and includes inter alia: the administrative costs
of the London Organising Committee of the Games ("LOCOG")
from its inception in July 2005; the rental or compensation payments
for venues; the costs of venue overlays (ie non-permanent structures
necessary to provide field of play and back of house facilities);
technology costs such as scoring and results systems; the operational
costs of the athletes village; the provision of catering and transport
facilities for athletes, officials and the Olympic family; the
costs of the Games workforce, marketing and ticketing costs, the
costs of medical and other support facilities at the athletes
village and venues and the provision of in-venue security.
The operational budget for the Games is estimated
to be $2.5 billion (£1.5 billion).
To offset the operational costs, LOCOG generates
revenues from the private sector. 3 Approximately $900 million
(£560 million) is funded directly by the IOC from monies
raised through the TOP sponsor programme and the sale of TV rights.
The remaining $1.5 billion (£900 million) will be raised
principally through local sponsorship and official suppliers ($725
million/£450 million), ticket revenues ($500 million/£300
million) and licensing ($90 million/£60 million).
The candidate file shows the operating budget
conservatively estimated at break-even, however we confidently
expect LOCOG to produce an operating profit in excess of £100
million.
Non LOCOG investment in competition and non competition
venues
LOCOG does not fund the capital costs of venues
or other permanent infrastructure. Approximately $900 million
(£560 million) is expected to be invested in new venues such
as the Olympic Stadium, the Aquatic centre, the Velodrome and
the sports arenas in the Olympic Park.
A further $215 million (£l30 million) is
expected to be spent on constructing the permanent infrastructure
of the International Broadcast Centre (IBC) and Main Press Centre
(MPC).
Both the venues and the IBC/MPC have for the
purposes of the bid been assumed to be funded from the $3.8 billion
(£2.375 billion) package agreed between the UK Government
and the Mayor of London, although it is anticipated that private
sector investment would be forthcoming.
Other capital investments related to the Olympics
are also funded from the agreed package—these comprise for
the most part transport infrastructure such as road and rail improvements
adjacent to the Olympic Park4 (c $600 million/£380 million)
and enhanced infrastructure within the park such as land bridges
and tunnels (c $560 million/£350 million5) at 2004 prices.
2
In summary, the £2.375 billion Agreed
Funding Package funds the following expenditures:
| The construction of new venues
| £560 million |
| IBC/MPC construction | £130 million
|
| Olympic transport infrastructure | £380 million
|
| Enhanced infrastructure in the Olympic Park5
| £350 million |
| Other costs including security, elite sport, contingencies and inflation
| £955 million |
| Total | £2,375 million
|
| |
Lower Lea Valley development
The Olympic Park is based on a redevelopment plan for the
Lower Lea valley, costs associated with the underlying infrastructure
requirements of the park that are not associated with the
Olympics have been estimated at c $1.3 billion (£800 million)
6 at 2004 prices. This capital investment will be funded largely
from central government and is not included in the $3.8 billion
(£2.375 billion) funding package.
Athletes' Village
The $1 billion (£650 million) athletes' village will
make use of an existing planned housing development and will be
privately funded as part of the broader redevelopment of Stratford
City.
Other Non-Olympic Capital Investments
Capital investments that will benefit London and help to
stage the Olympic Games but which are committed independently
of the Games coming to London include road and rail schemes totalling
$11.5 billion (£7 billion), that will proceed regardless
of whether London hosts the 2012 Games and which for the most
part are already funded and underway. 4
TRANSPORT
Key facts
— London will be the best connected Games ever.
— 10 Railway lines will serve the Olympic Park in
2012. Nine of these exist today and the tenth—the high speed
Channel Tunnel Rail Link—will be completed in 2007.
— The Olympic Park will be served by three stations
with a capacity of 240,000 passengers per hour, a train every
15 seconds.
— The Olympic Javelin train service will transport
spectators between the Olympic Park and King's Cross/St Pancras
Station in the heart of London in just seven minutes, carrying
25,000 per hour.
— Each spectator ticket will include travel within
London on all trains, tubes and buses on the day of the event
through to 04.00 the next morning.
— 100% of spectators will use public transport,
cycle or walk to events.
— Two major park and ride sites will be established
with a combined capacity of 12,000 cars and both within 25 minutes
of the Olympic Park.
— Olympic Family fleet cars will be low or zero
emissions.
— As the Games will occur during school holidays
and summer vacation time, London's overall traffic demand falls
by 20%.
— London's international airports are the best connected
in the world.
— $30 billion has been committed by the Mayor and
Government between now and the Games to improve London's transport
infrastructure.
Overview
London 2012's key objectives for transport include:
— Minimise athlete travel distances and times.
— Provide safe, reliable and congestion free transport
for the Olympic Family.
— Offer public transport facilities which are fast,
frequent and for spectators.
— Ensure that transport for the rest of London continues
smoothly.
— Take advantage of the significant investment in
public transportation and infrastructure which is already planned.
— Utilise the best connected international airport
in the world.
Background
Minimise travel distances and times for athletes by creating the
most compact Games possible
More than 50% of athletes will live and compete within the
Olympic Park, 80% will be within 20 minutes of their venues, and
more than 97% within 30 minutes. 93% of training venues will also
be within 30 minutes. For the Paralympic Games, 98% of athletes
will be within 15 minutes of their venue.
Provide safe, reliable and congestion-free transport to, and between,
venues for the Olympic Family
The 240 kilometre designated Olympic Road Network (ORN) will
transport the Olympic Family quickly between destinations using
traffic signal management and lane enforcement. The route between
Hyde Park and the proposed Olympic Village has been completed
in just 21 minutes and 45 seconds using traffic signal management.
Offer world-class public transport facilities which are fast,
frequent and simple to use for spectators
The Park will be served by 10 rail lines delivering one train
every 15 seconds and carrying 240,000 people per hour. An Olympic
Javelin shuttle service using the new Channel Tunnel Rail Link
and bullet trains will speed 25,000 passengers per hour to the
Olympic Park from the centre of London (King's Cross St Pancras)
in just seven minutes and from Ebbsfleet in 10 minutes. The Olympic
Park will be served by rail and tube stations at West Ham, Stratford
Regional and Stratford International.
There will be no spectator parking at Olympic venues, although
two park and ride sites will provide a total of 12,000 parking
spaces, with 9,000 spaces at Ebbsfleet station. London's 21,000
taxis and the entire DLR network are accessible to people with
disabilities, as will be all London's buses by end 2005.
Ensure that transport for the rest of London continues to operate
smoothly
During August, travel demand in London is down by as much
as 20%, leaving ample capacity for the 5% additional demand created
by the Olympics.
Take advantage of the significant investment levels in public
transportation and infrastructure which are already planned
London was the first capital city to introduce a hi-tech
congestion charging system to limit traffic in the central zone.
Between now and the 2012 Games, over £18 billion ($30 billion)
will be spent on improving and operating London's public transport
infrastructure. This is not dependent on winning the bid but is
already planned and committed.
Support the planning with a proven record of delivery and management
London has extensive experience in managing large scale sporting
and cultural events. London Underground regularly manages an additional
one million people through key central London stations for major
events such as the Notting Hill Carnival, Europe's largest outdoor
event.
Utilise the best connected international airport in the world
London Heathrow is the best connected airport in the world.
Backed up by Gatwick, Stansted and London City Airport, current
capacity already far exceeds projected traffic and the completion
of Terminal Five will add further capacity. Heathrow, Gatwick
and Stansted are all linked to central London by express train
services and London City will soon be connected to the DLR. Throughout
the Games rail passengers from mainland Europe will be able to
access the Olympic Park via one cross platform Interchange at
Ebbsfleet, a ten minute rail trip from the Park.
ARTS, CULTURE
AND EDUCATION
Key facts
— London has over 200 museums, 500 cinemas, 100
concert and music halls and five symphony orchestras.
— Every day there are at least 150 cultural events
in London.
— London's restaurant and café culture encompasses
cuisines from over 70 different countries.
— 39% of London's total area is made up of parks
and green spaces, more than any other city of its size in the
world.
— London's major public spaces, from Trafalgar Square
and Covent Garden in central London to Victoria Park in east London
and Hyde Park in the west, will be focal points to celebrate the
Games.
— In the "Why London" survey conducted
by the British Airport Authority (January 2005) 91% of foreign
visitors to London rated the Capital's culture as Excellent or
Good;
— In the same survey, 81% ranked the "Friendliness
of People" as a key attraction.
— It is home to an internationally recognised creative
industry that generates more than £21 billion per year for
the nation's economy.
Overview
London 2012 has three key objectives for its arts, culture
and education programme:
— Provide a dazzling and spectacular ceremonial
programme which is creatively and impeccably staged.
— Unlock Britain's creative wealth and London's
reputation as a world cultural capital to celebrate youth and
internationalism.
— Instil the Olympic spirit through inspiring education.
Background
Provide a dazzling and spectacular ceremonial programme
Inspired by John Donne's "No man is an island"
and the UK's rich maritime heritage, the 2012 cultural and educational
programme will emphasise voyage and discovery, and the desire
of an island nation to make new and lasting connections within
our communities and the world, specifically:
— Olympic Friend-ship: Launched at the Beijing
Games, the FriendShip will be a full size ocean-going clipper
crewed by young people, artists, environmentalists, and scientists
travelling the globe exchanging a rich cultural cargo with every
nation visited.
— Olympic Torch Relay: Subject to the approval
of the IOC, the Torch Relay will be an international journey of
hope and reconciliation, crossing the home countries of Nobel
Peace Prize winners and inspiring areas of conflict with the Olympic
message of peace.
— Opening and Closing ceremonies: The combined
talents of our world-class directors, artists, lighting engineers,
illusionists, spectacularists and carnivalists will fill the Olympic
Stadium with magic in a celebration of exploration, discovery
and friendship.
Unlock London's reputation as a world cultural capital
London is a world centre for arts and culture—in theatre,
music and dance, museums, libraries and the visual arts, fashion,
architecture and film. The full range of London's cultural strength
will be evidenced through:
— World Cultural Fair: As athletes come from
all around the world to compete we will ask them to bring their
nations with them, transforming London with a world cultural fair.
— 2012 Festival of World Youth Culture: To
inaugurate the Olympic renaissance of East London, 2012 will see
the launch of a festival of world youth cultures staged along
the waterways, bridges and streets of the revitalised Lower Lea
Valley.
— International Shakespeare Festival: Our
greatest English poet/playwright has been adopted by the world.
Shakespeare's works will be performed all over the city by artistic
communities from around the globe.
— Olympic Proms: Prioritising new work and
international creativity, the Olympic Proms will showcase the
widest range of musical styles and commissions by young composers
from many countries.
— Five Rings Exhibition: Representing the
world's continents, the five rings will inspire museum and gallery
partnerships to host collections from around the world and invite
international curators to offer new Interpretations of our shared
histories.
— Five day Olympic Carnival: Drawing on the
success of the Notting Hill Carnival, the event will maintain
the celebratory momentum between the close of the Olympic and
the start of the Paralympic Games.
Instil the Olympic spirit through inspiring education
The Olympic and Paralympic Games will provide a lasting educational
legacy for the UK. Based on the idea of education as a voyage
of discovery, Britain's children will undertake a four year virtual
journey aboard the Olympic Friend-ship, gaining an appreciation
and understanding of the values and ideals of the Olympic movement.The
voyage of the Olympic Friend-ship will also inspire and reinforce
a number of other educational initiatives:
— Primary school programme in partnership with WWF
to study environments of the Olympic Friend-ship's ports
of call.
— Olympic Language Programme to encourage
secondary school children to teach their heritage, languages and
culture to other school children.
— Young Ambassadors' Programme focused on
the most deprived areas of the UK will develop language skills
and equip participants to serve as volunteers and Ambassadors.
This will contribute to creating a legacy of new skills and opportunities
for young people.
— The Olympic Youth Camp on the Olympic Friend-ship
moored close to the Games, will provide an experience based on
the importance of reaching out to other cultures and celebrating
diversity in the true Olympic spirit.
FACTS AND
FIGURES
Ticketing
— 9.6 million tickets for sale across the Olympic
and Paralympic Games: 8 million for Olympics and 1.6 million for
Paralympics.
— 4.3 million tickets available at £20 or less;
6.2 million tickets at £30 or less; 7.6 million at £50
or less (free travel on London transport).
— Tickets for athletics will start at £15.
— Marathons, cycling road races and triathlons will
be free to watch.
— Projected sell-out rate of 82% for Olympic Games
and 63% for Paralympics.
— 20,000 £10 tickets available for Olympic
Park to watch events on big screens.
— UK spectators likely to make up 80-90% of total
attendance.
— 30 million people live within a day-trip of London;
7 million live in London.
Athletes' Village
— The Olympic Village will be the most spacious
in Olympic history with 17,320 beds and an average 16 sqm floor
space per athlete.
— Each apartment will have internet access, TV,
private courtyard, and many will have balconies with views over
the Olympic Park.
— Athlete buildings no higher than eight storeys
with 2-5 bedrooms.
— Olympic Village dining hall can cater for 5,500
athletes at same time.
— Athletes' Boulevard will have shops, casual dining,
and outdoor cafes.
Transport—Olympic Family
— 80% of athletes within 20 minute of their events.
— 97% of athletes within 30 minutes of their event.
— 93% of all training venues will be within 30 minutes
of the athletes village.
Transport—Public
— 90% of venues will be served by three or more
public transport options.
— two major park and ride sites will be established
with a combined capacity of 12,000 cars (both off the M25) and
within 25 minutes of the Olympic Park.
— 9,000 park and ride spaces will also be available
at Ebbsfleet where spectators can board the javelin service which
will take 10 minutes to the Olympic Park—the same station
where continental spectators travelling by Eurostar will join
the javelin to the Olympic Park.
— On event days 78% of spectators likely to travel
from within London and 22% from the rest of the UK and Europe.
— Each spectator ticket will include travel within
London on all trains, underground, buses and trams on the day
of the event through to 4 am next morning.
— Integrated tickets will also include park and
ride.
Hotel Rooms
— By 2012 over 135,000 rooms will be available within
50 km of Olympic Park; currently over 120,000 rooms are available.
— Over 40,000 rooms already guaranteed—including
many well-known independent hotels and chains, with no minimum
stay requirements.
— Six of London's finest 5 star hotels on south
end of Park Lane will serve as the IOC Centre of Operations—2,000
rooms have been secured, just 20 minutes drive from Olympic Park.
— Binding legal agreements are in place with accommodation
suppliers for over 25,000 rooms during Games Period securing rooms
at reasonable rates.
— IOC can be certain that London hoteliers will
not artificially inflate rates or attempt to profiteer.
Sustainability
— 80% of visitors/staff will use rail services to
reach the Olympic Park.
— low/no emission vehicles will be used to transport
Olympic Family.
— no private car access to any Olympic venue except
for Olympic Family.
— an "Olympic active spectator programme"
will encourage spectators to walk or cycle to venues, via use
of bike pools and secure cycle storage.
— a tri-generation plant will supply electricity,
heat and chilled water to the Olympic Park-technology which produces
33% lower CO2 emissions than from the electricity grid.
— with half of the world's population living in
urban environment, London's focus on a sustainable Games presents
a high profile opportunity to demonstrate solutions to global
problems.
Guarantees
— 400 guarantees have been signed by over 200 different
institutions including: 11 Government departments (including the
Prime Minister and Chancellor), devolved administrations, 27 boroughs,
all sport venues, all 28 Olympic International sport Federations,
all 35 National Governing Bodies of sport in the UK, major hotel
groups and outdoor advertisers.
Jobs
— Thousands of new jobs will be created in London
and across the UK as a result of staging the 2012 Games. And once
the Games end, the Olympic Park itself will accommodate 12,000
new jobs.
London—international media hub
— More than 2,000 international correspondents representing
1,000 foreign news organisations from over 90 countries are based
in London—more than any other city.
— For first time in any Games live Olympic backdrop
presentation facilities will be available to broadcast rights
holders via rooftop studios on the MPC with a direct view of the
Olympic stadium and Park.
Culture
— Victoria Park in east London and Hyde Park in
west London will be focal points to celebrate the Games with pop
and classical concerts, cinema, theatre and medal ceremonies on
each day of the Games.
REFERENCES
| 1 | Figures for the operational budget and capital expenditures in the candidate file are quoted in USD at an exchange rate of £:$ 1.6—which represents the long-term equilibrium exchange rate.
|
| 2 | Figures for the operational budget and capital expenditures in the candidate file and in this note are quoted in 2004 money. NB the government financing package of £2.375 billion ($3.8 billion) is quoted in final outturn money and therefore there is no direct comparison between these figures.
|
| 3 | LOCOG also receives a government grant of approximately $70 million to defray certain Paralympic costs.
|
| 4 | Of the $11.5 billion road and railway investment mentioned in table 6.2.2a of the Candidate File, approximately $600 million relates to road and rail improvements in and around the Olympic Park and is funded from the Agreed Funding Package.
|
| 5 | Approximately 30% of the total cost of enhanced infrastructure of £500 million ($800 million) is estimated to be funded by the private sector with approximately £350 million (at 2004 prices) being funded from the agreed funding package.
|
| 6 | The c £800 million ($1.3 billion) non-Olympic infrastructure costs include: site investigation and earthworks, demolitions, roads and parking areas, watercourses, bridges and tunnels, relocation of railway sidings, utility and power diversions, water and sewerage works, telecommunications and certain legacy conversion costs. This investment of $1.3 billion together with the infrastructure associated with the Olympics of $800 million (see 5 above) comprises the Olympic Park Infrastructure investment of $2.1 billion shown in table 6.6.2a of the Candidature file.
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September 2005
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