SBD Global/April 18, 2014/Olympics

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  • Rio Games Sees Budget Increase By 25% In Wake Of Project Delays, New Transit Plans

    Brazilian authorities "unveiled an infrastructure budget" of $10.76B for the 2016 Rio Olymipcs, which is 25% "more than planned, as they try to reassure the world they can deliver facilities on time," according to Pedro Fonseca of REUTERS. The budget "covers 27 projects in urban development and public transport," including $3.56B for "a newly added fourth metro line." Rio Mayor Eduardo Paes said that the higher budget "was due to the inclusion of new projects and inflation, which has blown up costs" by 30% since Rio was named host in '09. He added that 57% of the infrastructure costs "would be paid for with public funds." The total cost of the Rio Games has risen to $16.33B, "which does not include more than half of the 52 projects or facilities that will be used exclusively for the games and still require approval." So far, "only 24 projects have been budgeted" at $2.49B. Additionally, the organizing committee's budget "has risen" 27% to $3.12B. The IOC and the Int'l Sport Federations last week "criticized the Brazilian government for the slow pace of work" (REUTERS, 4/17). BLOOMBERG's David Biller wrote Rio de Janeiro Mayor Eduardo Paes said that the city "is on track in its planning for the 2016 Summer Olympics," as officials prepared Wednesday's presentation of two tenders for work at the Deodoro sports complex. Paes' comments "came after the heads of several sports federations expressed concern about the pace of Rio’s progress," leading the IOC to announce that Exec Dir Gilbert Felli and other officials would fly to Rio to oversee and consult with local planners. Paes said that "he doesn’t see Felli’s visit as an intervention." Paes: "Their presence is very good, because we are going to show them we have no reason for concern. We’re left without any time to lose in Deodoro; we can’t have any errors there. The Olympic Park has nothing delayed" (BLOOMBERG, 4/16).

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