Friday, July 9, 2010

Increase in activity as Brazil prepares for spotlight

It has been a busy week for World Cup 2014 news with the 2010 tournament reaching its climax and focus already shifting to Brazil.

Still in South Africa, President Lula, at the launch of the official symbol for the 2014 Cup, has offered some important comments on preparations for the event, stating that they are aiming to have ‘maximum transparency’ for all public spending, which will be able to be followed via the internet in real time.

Lula’s comments come despite, or maybe because of, this week’s decision by the Brazilian Congress to slacken regulations covering preparations for the 2014 World Cup and 2016 Rio Olympics. The decision will mean stadium and other infrastructure projects, particularly much-needed airport upgrades, will enjoy greater flexibility to ensure the increasingly tight deadlines are met. The main changes are the reduction of environmental licensing requirement and new, simpler rules for both the expropriation of property and contracting companies in certain circumstances. Concerns that the measures will provide added opportunities for corrupt behaviour were met with an assurance that there will be strict supervision and control through the Court of Accounts of the Union.

In other news, the lead contractor for Brasilia’s World Cup stadium project has been decided, with the consortium of Andrade Guitierrez and Via Engenharia winning the tender with the lowest price of R$696 million, despite lingering doubts over Via’s unproven involvement in a bribery scheme uncovered earlier this year involving, amongst others, Brasilia’s former governor, who is presently in custody. The only other tender was from the Odebrecht and OAS Consortium at R$ 702 million.

The project itself is the most expensive of all 2014 host stadia and will involve a major upgrade from the previous facility, with capacity jumping from 42 thousand to 71 thousand, primarily in a bid to attract the 2014 Cup opening ceremony to the city. Sao Paulo, Belo Horizonte and to a lesser extent Rio (as the final host) are the only other possibilities for the important event.