By Avril Ormsby
LONDON (Reuters) - The cost of the London 2012 Olympics could rise by up to 180 million pounds, mainly because of security, but will remain within budget, organisers said on Tuesday.
The anticipated final cost is set to rise by 21 million pounds, largely as a result of the poor economic climate, but a further 110 to 160 million pounds could be spent on securing the Olympic Park and venues during the Games and immediately afterwards, the Department for Culture, Media and Sport said in its latest financial reports.
The extra money will come from the remaining 1.25 billion pound contingency fund, and the overall cost will stay within the 9.3 billion pounds budget.
Organisers hope some of the 110-160 million pounds will be offset by savings elsewhere.
Of the 21 million pounds, 13 million has already been drawn down from the contingency.
"As we enter the busiest and most exciting phase of the Olympic project so far, this report shows we are still on time and still on budget," Olympics minister Tessa Jowell said in a statement.
Following a government review, the Olympic Delivery Authority (ODA), responsible for Games' infrastructure, has been given additional responsibility for security and operations between 2011 and 2013, which will cover testing, Games time and the immediate legacy.
Up to now, it was unclear who would take control of the Park during this period, with the ODA, the London Organising Committee (LOCOG) and the Olympic Park Legacy Company all sharing an interest.
The security cost is separate to the 600 million pounds budget put aside for securing the Games, such as policing.
Despite savings of 100 million pounds during the past quarter, mainly on site preparation and venues, an extra 21 million has been added, largely as a result of the credit crisis.
There has been a reduction in the expected returns from future land receipts because of the deterioration of the property market.
Work was temporarily affected by the winter weather, the worst to hit Britain in 30 years, but was now back on track.
(Editing by Steve Addison)
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