Where the money goes Monies drawn down from the fund by the Olympic Lottery Distributor (OLD) are used to make grants or loans under section 30 of the 2004 Act. The distributor’s main grant recipient is the Olympic Delivery Authority (ODA), the body responsible for delivering the venues and supporting infrastructure for the 2012 Games.
Following discussions with CRND it was agreed that the OLDF funds should be invested from the outset in the Debt Management Account Deposit Facility Call Notice Deposit Account, in order to preserve capital and retain full liquidity, given uncertainties over size and timing of drawdowns.
On 15 March 2007, the Secretary of State announced to the House of Commons that the Government had agreed a new Olympic funding package of £9.325 billion (including a £2.747 billion total contingency).
This funding package provided up to £2.175 billion towards the public funding package for staging the 2012 Games:
The Payments into the Olympic Lottery Distribution Fund etc. Order 2008 permits the Secretary of State to transfer up to £1,085m from the National Lottery Distribution Fund (NLDF) to the OLDF in quarterly instalments between 2009 and 2012. This comprises £410m as originally envisaged in the Olympic bid and announced in 2003, and a proposed further £675m arising from the budget review. The Order was approved by the House of Commons on 15 January 2008 and by the House of Lords on 30 January 2008. It was made by the Parliamentary Under Secretary of State, Gerry Sutcliffe MP, on 2 February 2008 and came into force on 3 February. The first transfer of funds took place on 2 February 2009 and thereafter each quarter.
The balance of £340m lottery contribution will come directly from the existing sport distributors funded by the NLDF and will not pass through the OLDF. £289.5m represents funding used by the sports distributors in securing benefit to elite and community sport of holding the Olympics and Paralympics in the UK, and the remaining £50.5m is a contribution to the construction of the aquatics centre and the velodrome, both new facilities intended to provide lasting benefit after the Games.
Following the General Election of May 2010 the coalition government committed itself to reducing the level of government expenditure. As part of this programme the Olympic Delivery Authority was asked to find savings of £27m in 2010-11. The public sector funding package was reduced by £27m and now stands at £9.298bn