Construction work has started on the Olympic Village keeping plans on track to deliver accommodation for athletes and officials during the London 2012 Games, and leaving a lasting legacy of thousands of new homes in the heart of east London.

The announcement was made by the Olympic Delivery Authority (ODA) and preferred development partner Lend Lease.

The Olympic Village will provide 17,000 beds for athletes and officials during the Olympic Games and 7,500 in the Paralympic Games. After 2012, it will leave the legacy of up to 3,500 new homes with the new communities supported by new parks, open space, community facilities and transport links.

Piling works are now underway on the Olympic Village site which involves inserting concrete columns up to 24 metres in length into the soil to reinforce the ground where the first blocks of the Olympic Village will sit. The piling works will form the permanent foundations for the first blocks of the Olympic Village allowing works on the concrete substructure to start later in the summer.

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David Higgins, ODA Chief Executive said: "The start of construction on the Olympic Village is a significant milestone and maintains the progress and momentum of the project as we work through the financial arrangements. Given the challenging economic environment, we are in detailed discussions about the level of public investment in the Olympic Village. Clearly this will be a world-class development capable of delivering returns on any investment when the homes are sold after the Games.

"The Olympic Village is about more than just housing athletes during 2012, it will be an integral part of much wider regeneration, delivering new homes and community facilities in the heart of east London to ensure that the legacy of 2012 lives on for generations."

Lend Lease Europe Chairman, Nigel Hugill, said: "We were all quietly very determined to have cranes operating well before the start of the forthcoming Games in Beijing. Foundation piling for the first block of the Athletes' Village is now well underway.

"More than fifteen of the brightest architectural practices from the UK and mainland Europe are now commissioned. They are working flat out with our own delivery teams to a clear brief which provides for substantial offsite prefabrication. As well as what could ultimately be up to 3,500 high quality homes, the designs include a major new health facility and a brand new school for 1,800 local 4-18 year olds. We are far from complacent but we are certainly content with delivery progress to date."

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(CD/JM)