LONDON – Olympic organizers intend to “bear down” on costs in the wake of the global financial crisis and do everything possible to avoid overruns on the $17 billion budget for the 2012 Summer Games.

Mayor Boris Johnson appeared before the British Parliament's Olympic watchdog committee Tuesday, five months after he defeated incumbent Ken Livingstone and assumed a central role in planning the games.

Johnson praised organizers for doing a “first-rate job” in “increasingly difficult market circumstances.”

“The whole thinking about the Olympics has changed in that market conditions have changed,” he said, adding the city will deliver a “fantastic” Olympics while staying within budget.

The financial turmoil is complicating London's ability to secure private funding for key construction projects. Organizers may be forced to use reserves from the government's contingency fund of $1.9 billion to help pay for the athletes' village and a new broadcast and press center.

“We are looking at some changes, some economies we might be able to make,” Johnson said. “There are ongoing discussions about whether there are savings to be made about venues and what more we can do to bear down on some of the expenditures.”

Johnson said about 25 percent of the construction budget and 2 percent of the contingency already had been spent.

The Olympic Development Authority had hoped to raise $900 million from the private sector for the $2 billion Olympic Village, which has been scaled back to 3,300 apartments for 17,000 athletes and coaches.

“I'm very reluctant to see any early spending of the contingency,” Johnson said. “There are issues of financing of the village. There are ongoing negotiations. We are still trying to get private sector investments.”

Johnson said organizers are determined to ensure long-term use of the facilities in the Olympic Park, an area of east London being regenerated for the games and beyond.

“It's absolutely vital that we get value for generations to come,” he said. “We can't afford to waste money or lose money. We don't want to see money unnecessarily squandered on this or that.”

The mayor said the Olympics will be a “wonderful thing for London and this country, but I have to balance that against the need to bear down on costs. Every argument is what we can do to cut costs and save the taxpayer money without jeopardizing the success of the games. That's where it all turns.”

Johnson said London was not intimidated by the success of the Beijing Olympics, and would make the games more entertaining for spectators.

“The IOC doesn't ... want London to produce a carbon copy,” he said. “We can produce a games just as good, if not better, without wasting a lot of money.”

The mayor said organizers are considering distributing handheld devices to fans to allow them to monitor what is happening throughout the Olympic Park and to watch video replays. London school children should be allowed into Olympic sites when the venues are not full, he said.

“It will be very, very different (from Beijing), much, much more fun,” Johnson said. “We will use the whole of the city to create a festival atmosphere.”