London 2012 Olympics to cost 9.3 bln pounds

LONDON, Mar 15 (Reuters) The estimated cost of staging the 2012 London Olympic Games has more than doubled to 9.3 billion pounds (18 billion dollar), the government said today.

Confirming speculation among legislators and the media that costs would spiral, sports minister Tessa Jowell said the government would stump up an additional 4.93 billion pounds to fund the games.

''The London Olympics are a project that will change Britain for the better, forever,'' Jowell told parliament, saying the games would bring ''huge financial gain'' to Britain.

Uncertainty over the Olympic costs has led to concern the government would raise funds by imposing a heavier burden on taxpayers in the capital and by taking more money from the national lottery, depriving other good causes of funds.

The fears have soured the euphoria that gripped the British capital when it was awarded the 2012 Olympics in July 2005.

When London bid for the games, it estimated the cost of building the main Olympic sports infrastructure in east London at about 3 billion pounds and threw in another 1 billion pounds for regeneration of the dilapidated surrounding area.

Jowell said today that the budget for construction costs was now estimated at 5.3 billion pounds, including: -- 3.1 billion pounds for building the main Olympic Park and other sports venues -- 1.7 billion pounds for Olympic infrastructure and regeneration -- 500 million pounds for a contingency fund.

It also budgeted 388 million pounds for the Paralympics, 600 million pounds for policing and security, 836 million for tax and 2.25 billion for a further contingency fund.

REUTERS PDS RN1923