Brazil Estimates Public Spending Cost Of 2016 Olympics At $2.3B; Price To Increase
Brazil's government on Tuesday issued its "first estimate of public spending on projects" related to the 2016 Rio Olympics, though the $2.3B price tag is "set to swell as more projects receive approval," according to Pedro Fonseca of REUTERS. The initial estimate from Brazil's Public Olympic Authority (APO) includes "spending by federal, state and municipal governments for 24 approved projects carried out through both public-private partnerships and by the government alone." The number does not "include spending on 28 planned projects that still require approval." The total estimate, which is "due to be revised in March," also excludes projects such as "airports and pollution control, which are not dedicated strictly to holding the Olympics." Last week, officials said that the operating budget for the Olympics and Paralympic Games in '16 had jumped 27% from prior estimates to 7B reais ($2.9B), "citing factors such as inflation and costs for new technology." The operating budget was "originally set to include" up to 1.4B reais ($580M) in public funds, but officials later "reduced that figure to zero in response to public outcry over the high cost of stadiums and other projects required by the Olympics" and the World Cup. APO officials "contradicted that pledge on Tuesday, saying Brazil's government could indeed take on some of those costs if necessary." The Rio 2016 organizing committee estimated the Games would cost 28.8B reais when it bid to host the event in '09 (REUTERS, 1/28).