Clean-up hits velodrome

The cost of the 2012 velodrome could rise above its budgeted £80 million as workers remove hundreds of tonnes of rubbish from the site.

The unexpected contamination was discovered by the Olympic Delivery Authority as it prepared to lay the foundations of the 6,000-seat track cycling venue. Now up to 500 tonnes of domestic and industrial waste is being removed from the site per day.

The velodrome will be built in the north of the Olympic Park in Stratford on the site of a 100-year-old tip.

A spokesman for the ODA said complications with earthworks had caused "cost pressures" which did not necessarily mean the velopark, which includes the BMX venue, would break its £80million budget.

The cycling stadium is being designed and built by ISG as part of a package of works which includes transforming the site afterwards to include an outdoor cycle speedway circuit, a 1.6 kilometre road racing circuit and a mountain bike course. A design competition was judged by leading names from the world of architecture and design, as well as Olympic gold medal-winning cyclist Chris Hoy.

In April this year the ODA confirmed that the cost of the facilities had almost tripled from the original bid figure of £28 million.

The ODA spokesman said: "Difficult ground conditions and detailed foundation design have put pressures on the budget for the velodrome.

"We are working closely with the contractor to manage these projected cost pressures and continue to maximise savings right across the project."

Construction of the velodrome is due to begin in 2009 and finish in early 2011, to allow for test events before the Games.The budget concerns with the cycling venue come as Boris Johnson confirmed that funds from the Homes and Communities Agency will be allocated to the Olympic Village.

The public money will be used to plug a funding gap after money from developer Lend Lease dried up.

A spokeswomen for the Mayor said: "The accommodation in the Olympic Village will be converted into permanent housing. A proportion of these homes will then be sold or let as affordable housing.

"Funding from the Homes and Communities Agency budget is being made available, on the same basis as funding for any affordable housing, to meet the costs of these homes." The details of the funding will be agreed next month.