Wednesday, May 26, 2010

Infrastructure Brazil: Sports-Driven Infrastructure Business & Financing Opportunities

Austrade will be a supporting organisation for this major conference, which is shaping up to be a must-attend for groups keen to be involved in Brazil 2014 and Rio 2016. Along with other benefits, Austrade has arranged for its guests to receive an extra 25% discount when registering. Please see below for more details...

Rio 2016 media on the move but events remain

Following last week´s 2016 Olympics Organising Committee meeting in Rio, it has emerged that only part of a new and somewhat controversial plan to move certain Games facilities to the city´s currently degraded port area will likely go ahead, although no sporting installations will be affected.

In line with the alternative plan, first (formally) proposed by Rio Mayor Eduardo Paes, the media village will be moved from the Barra region, which will host the majority of Games facilities, including the athlete village, to the port area, which is much closer to the CBD and main tourist attractions of the city. Although the media centre will remain in Barra, a number of associated support facilities will also be hosted in the port area. Full details of the changes are yet to be released.

12 host cities remain with new June deadline for finance

Despite ongoing delays affecting a number of the projects, the 12 Brazil World Cup 2014 host stadia have, once again, been officially approved by the Local Organising Committee (LOC) following FIFA’s latest comprehensive inspection of the works. The LOC has also laid out what remains to be done for each project, plus has asked the respective state and city governments handling the projects to assure their financing models and guarantees for the projects by the end of June, at which time further announcements will be made.

While the LOC and FIFA have previously confirmed that some host cities may well be cut from the event because of delays, there was no mention during this latest approval process of any plans to diminish the amount of host cities, however LOC head, Ricardo Teixeira, who is also the president of the Brazilian Football Confederation and has been involved in a number of controversies over the years, commented that some 2014 Cup hosts could lose the right to host matches in the 2013 Confederations Cup because of the ongoing delays. The latter is held in the host country for the next FIFA World Cup 12 months prior to the Cup.

Tuesday, May 18, 2010

New site to keep Australian business up to date

Welcome to this new resource developed exclusively for Australian major event and sport industry groups interested in the wide range of business opportunities available in relation to the 2014 Brazil FIFA World Cup and 2016 Rio Olympic Games.

The site will be providing weekly news and information on specific, relevant opportunities and developments in all Brazilian 2014 Cup host cities and, of course, Rio de Janeiro, with a view to ensuring Australian expertise is an important part of the planning and realisation of these two mega-events.

Comments, questions and enquiries are always welcome, with the site to grow into an interactive resource and central point for Australia’s involvement in the Brazilian sport and major event industries.

NOTE: Although the new service is officially beginning this month (May 2010), previous content from an earlier version remains accessible and provides some good background on what has been happening with the two events up until now.

Legislation changes to speed up Games procurement requirements

In an unsurprising and considerably overdue move, the Brazilian Federal Government has raised the idea of altering the existing regulations for public tenders to add flexibility and speed up the overall process to assist the realisation of World Cup 2014 and Rio 2016 projects within required timeframes.

Brazil´s new Middle-East sport alignment

In a development with potential repercussions not only for Australia´s World Cup 2018/2022 bid but also for plans to increase engagement with Brazil’s major events industry over the coming years, President Luiz Inacio Lula da Silva has pledged Brazil’s support for Qatar’s 2022 World Cup bid as part of a number of new bilateral agreements finalised with the nation’s Emir, Sheikh Hamad bin Khalifa al-Thani.

Tourism talks a foot in the door for Australia

The chairman of Tourism Australia, Rick Allert, was in Rio de Janeiro during the first week of May as to address a Brazilian Tourism Board (EMBRATUR) seminar titled “The Olympic Games and Tourism - Australia's Experience and the United Kingdom's Preparations”. Mr Allert’s speech covered the experience and expertise in international promotion Sydney and Australia gained from hosting the 2000 Olympics.

Monday, May 17, 2010

Belo Horizonte fighting for opening rights

The Brazilian city with most links to Australia is a good chance to host the Opening Ceremony of the 2014 World Cup.

Belo Horizonte is located around 450km north and 550km north east of Rio de Janeiro and São Paulo respectively, in the state of Minas Gerais, of which it is the capital. The city has a population of around two and half million, with over five million in the official metropolitan region. Minas Gerais state has a population of just under 20 million, making it the second most populous state in Brazil, behind Sao Paulo.

Thursday, May 13, 2010

Consultants readying for action

The big four consulting firms, KPMG, PricewaterhouseCoopers, Deloitte and Ernst & Young, have been busy preparing themselves for Brazil 2014 and Rio 2016 and are poised to win significant work over the coming months and years. All are banking on their wealth of expertise gained on other major event projects in many other countries to hone their approaches in the Brazilian market, utilising their international teams and sports “knowledge” centres located elsewhere as a crucial aspect of their local offering.

Key services being offered for the events include works and finance auditing, risk management, viability studies and assistance with the all important Public Private Partnership model, which will be used for numerous projects, including a bunch of the stadium developments. Importantly, the firms will also be seeking to clarify and define the opportunities for private capital and investments in the two events, with the general consensus being that up to this point it is still difficult to determine exactly how many projects will unfold and where the best prospects lie.

A smaller rival, Terco Grant Thornton, is also getting in on the action and has set up a specialised team of around 100 to work on sport and major event projects in conjunction with international partners within the group.

Wednesday, May 12, 2010

Institute launched to accompany and assist 2016 projects

The ongoing push to move a number of 2016 Rio Olympics facilities from the Barra de Tijuca region, which would remain with the majority of installations even if the new plan is approved, to the city’s currently rundown port area has gained further momentum this week with the launch of the Rio 2016 Institute, a new body modelled on similar initiatives in previous host cities.

The Institute, which is still in the early stages of development, is to consist of an exclusive team of up to 35 experts that will closely accompany the approximately 70 projects already in the works and help ensure works are on track and adhering to required transparency and budgetary procedures. Adding weight to the case for moving certain facilities from Barra, the entity will be located in the Rio port area in an industrial warehouse formerly used by the Porto da Pedra samba school. (for more details on the planned changes see the report below from May 4).

Although the Institute will be subordinate to the Rio-2016 Special Secretariat, the latter’s head, Ruy Cezar, will not be presiding over the new body as his role is to speak for the Rio City Council on the Olympic Public Authority, which brings together federal, state and city government representatives and is responsible for coordinating the bulk of Games projects.

Tuesday, May 11, 2010

Lateness a window of opportunity for latecomers

The FIFA inspection team in Brazil this week to analyse all twelve host city stadium projects and the associated (and often sensationalistic) reports of missed deadlines, ‘incredible’ delays and possible FIFA repercussions have shown, at the very least, just how much work remains to be done to prepare the country for the 2014 World Cup.

With all but a few of the projects behind schedule and, more importantly, still requiring a major amount of work (some are yet to appoint a main contractor and those that have are just starting initial demolition or basic construction work), there are still hundreds of tenders, supply contracts, specialised technology requirements, advisory roles, etc. still to come, not to mention added opportunities stemming from inevitable design alterations and last minute changes.

For Australian businesses able and willing to win work on Brazil 2014 projects, the current amber alert not only shows that the window of opportunity is still open, but that things are likely to start moving a lot quicker than they have been up until now. Furthermore, the previously hazy details surrounding most projects are now coming into sharper focus, so a much clearer picture of potential opportunities are set to emerge over the coming months. All in all, it would be a good time to start considering where your business may fit in.

Monday, May 10, 2010

Belgian Approach Provides Key Pointers

Australian groups with an interest in World Cup 2014 and Rio 2016 opportunities should note the latest international move to link with the two events: a huge trade mission from Belgium is in Brazil this week accompanying Prince Philippe on an official visit to the country. A report in business newspaper Valor details how executives from 120 companies are taking advantage of the royal presence and have already offered some telling insights into the best options for approaching the complex yet dynamic market.

Re-iterating a common piece of advice on the Brazilian business environment, a number of participants have confirmed that they are primarily looking at partnership and even acquisition opportunities as a means of dealing with the country’s infamous “bureaucratic complexity”.

Amongst the diverse delegation are a range of businesses looking directly at Cup and Games opportunities, as part of an industry body called Belgium SportsTechnology Club. The entity has brought together 50 companies offering a “complete project” to organiser of both the Cup and Rio 2016, including two service providers that have already decided to establish a presence in Brazil: event, travel and hospitality specialist Suseia, and Veldeman Structure Solutions, which offers a range of temporary construction solutions.

Although yet to finalise anything, event specialist Production Resources Group has also been in discussions with Cup organisers about potential requirements, according to the report.

Tuesday, May 4, 2010

England agreement latest on a growing pile

With a number of countries already well positioned to be part of the preparations for the 2014 World Cup and Rio 2016 Olympics, England has sured up its involvement this week with the signing of an accord for the exchange of information and expertise in relation to organisation of the summer Olympic Games. The agreement also aims to ensure strong legacies for both London 2012 and Rio 2106 by increasing the flow of tourists between Brazil and England.

Upon the signing of the accord, Sandie Dawie, representative for Britain´s National Tourism Agency, commented that one of their first pieces of advice is to ensure everything is planned and budgeted in stages, and that there is an efficient and prepared team in place. These measures, she explained, help deal with inevitable bad press concerning perceived delays and related issues. For the London 2012 Games, organisers have been using the “2-4-1” program: two years preparation, four years of construction and one year of final rehearsals.

In April, both Germany and China also made official links with the Brazilian major events industry, the former formally signalling its intention to invest in the 2014 Cup and pass on expertise gained from the 2006 edition, while the latter agreed to share knowledge gained through hosting Beijing 2008 and assist with key infrastructure projects.

IOC flying in to new Olympic Port proposal

Planning for the Rio 2016 Olympics should step up a notch over the next few weeks with the IOC to visit the city for meetings from May 16-17.

The visit will be particularly interesting following the rise of an alternative plan for some key locations included in the official bid. The idea was first put forward by the Mayor of Rio, Eduardo Paes, in October 2009, and involves the transfer of the media village, two press and television media centres and some smaller temporary competition venues from the Barra region in the south-western part of Rio, around 20km from the CBD, where the bulk of venues will be concentrated, to the Port region just out of the CBD and just a few kilometres from the famed Maracanã stadium and João Havelange Stadium, which will host the athletics competitions.

Called Olympic Port, the proposal aims to take advantage of ongoing and much needed redevelopment of the port, which is quite degraded despite offering a range of important infrastructure. Following recent zoning changes in the port surrounds, there is considered to be plenty of room for such facilities, with buildings of up to 50 levels now allowed. The Mayor also cited the much-lauded port redevelopment for the Barcelona Games in 1992 as an example of what they hope to do.

The main questions surrounding the proposal relate to why it wasn´t included in the bid in the first place and just who is set to benefit from such a major change.