The Olympic village that will play host to the 2012 London Olympics may have to be funded by public money, according to Government Sports Secretary Tessa Jowell.

Around £1bn could now have to be funded publicly, while the government also dips into its £2.7bn contingency fund.

The public body responsible for developing and building the new venues and infrastructure for the Games, The Olympic Delivery Authority (ODA) and the government are working to complete a deal for private finance with Lend Lease, said Jowell.

“At the moment there is no private sector contribution, but we haven’t given up on securing a deal,” she said.

Meanwhile, former Home Office minister and advisor to The British Olympic Association has warned that inadequate security procedures have left London 2012 venues vulnerable to terrorist attack.

According to an interview in Spectator magazine, John Patten claims that well-placed sources claim that the Olympic site, situated in east London, is at risk from terrorists who could plant smart bombs in the foundations of venues currently under construction.

One of the biggest attractions of the village is expected to be the Aquatics Centre or ‘gateway’ to the park during the Games. The centre includes a 50m competition pool, a 25m competition diving pool and a 50m warm-up training pool.

By staff writer.