Oct. 8 (Bloomberg) -- London's 2012 Olympics organizers may scrap plans to build temporary arenas for sports such as basketball and shooting to save money as the global financial crisis squeezes the 9.3 billion-pound ($16.3 billion) project.

``The credit crunch is hitting the Olympics hard, but we remain resilient,'' said John Armitt, chairman of the London Delivery Authority, at a meeting of the city's legislative assembly today.

Organizers have eliminated the need for four temporary venues by moving events to existing arenas such as the ExCeL London conference center. The authority is awaiting a review by consultants KPMG into whether to reassign basketball, equestrian and shooting events, said David Higgins, chief executive of the authority, which is in charge of building the Olympic Park.

The Olympics site is Europe's largest public construction project, and plans include regenerating a rundown section of east London where the games will be staged. Developers involved in the project have been unable to get bank loans for the Olympic Village, where athletes will stay, and for the broadcast center.

Armitt suggested that the Olympic Village developer, Australia's Lend Lease Corp., may not be able to arrange private financing for the 1 billion-pound project by the end of December, as planned.

``You should not hold yourself to getting a deal by Dec. 31 if you can get a better deal by Jan. 31,'' he told reporters, adding that the funding talks are very ``fluid.'' Calls to Lend Lease in London and Sydney weren't immediately returned. The company remains committed to the project, Armitt said.

`Cozier' Than Beijing

Mayor Boris Johnson told a parliamentary committee yesterday that the Olympic Park will be ``cozier'' than that used for this year's Beijing games. The Chinese government spent four times the amount the 2012 organizers are planning to spend on the games.

The British government said today it would offer an unprecedented 50 billion pounds in emergency funding for the country's banks after the freeze in credit markets threatened to bring down the financial system.

The authority, whose construction budget comes from taxpayer and lottery funds, agreed to cover the initial construction costs of the village, which will house 16,000 athletes in 3,000 apartments, to keep the project on schedule.

The government is also exploring the possibility of using Islamic bonds to finance some of the project, Armitt said. A spokesman for Department of Culture, Media and Sport said the idea is in the early stages of discussion. Such bonds are compliant with Sharia law, which bans interest, and may attract Middle Eastern investors.

The 400 million-pound broadcast center is being scaled back because its projected value after the games can't be guaranteed ``in the current market,'' Armitt said.

He said he was confident the 2012 games won't exceed the 9.3 billion-pound budget, which includes about 2 billion pounds of contingency to cover cost overruns.

To contact the reporter on this story: Brian Lysaght in London at blysaght@bloomberg.net.

Last Updated: October 8, 2008 11:44 EDT