Revealed | How the cost of transforming the Olympic stadium rocketed

al-imran (31)in #olympic • 7 years ago

What a design.The original cost for transforming the Olympic stadium from games to legacy mode was never properly scrutinised, leading to a massive cost overrun, a new report published on Friday (December 1) by the mayor of London said.

The independent report Moore Stephens Olympic Stadium Review by forensic accountant Moore Stephens was looking into the spiralling costs of transforming the stadium into the home of West Ham United football club.

The final cost has been put at £323M, which the report says is significantly higher than the “unrealistic” original estimate of £190M. Much of the cost has been shouldered by the tax payer due to a deal done by previous mayor of London Boris Johnson and new lease holders West Ham United football club.

The deal meant the taxpayer would own, transform and operate the stadium, effectively renting it to the football club. This left the public with liability for cost overruns.

In games mode, the stadium was designed to seat 80,000 with a permanent sunken, concrete lower tier structure and temporary upper tier and steel truss supporting the roof. In legacy mode, this steel was to be removed along with the upper tier and roof and the permanent lower tier retained with a much smaller roof and seating for 25,000 people.The report said: “In our opinion, the decision to transform the stadium and to contract with WHU [Consortium of West Ham United Football Club and London Borough of Newham] was made on incorrect financial estimates and an insufficient appreciation of the critical commercial and financial risks.

“It is our opinion that the financial estimates were incorrect not because they were estimates, but because there were errors in their calculation, compilation and presentation.”

Khan said he was now taking over control of the London Stadium to put it on a “more secure financial footing” and was working with the London Legacy Development Corporation (LLDC) to put a plan together to control costs going forward.