Procurement and timetable
Projects related to the 2014 Brazil FIFA World Cup are coordinated by each of the 12 host cities state & municipal governments. Federal government is also involved in major infrastructure areas that are already part of the national development plan (PAC). Investments to build and reform stadiums in the 12 host cities will be around US$5.7 billion; and projects should consider an entire revitalization of stadium’s surrounding area in order to leave a legacy to the city.
The national commercial air traffic should double until 2014 and US$3.3 billion will be invested in airport infrastructure and modernisation in the 12 host cities to attend the estimated demand. Large investments will also be made in hotel accommodation, ports infrastructure, tourism, training and security, since estimated number of tourists during the event is 500,000. All host cities will have to expand their hotel network to accommodate estimated number of visitors.
An estimation of US$11.5 billion will be invested per year in the next 5 years in telecommunications infrastructure (fixed line network expansion, broadband Internet and 3G mobile high-speed networks implementation).
The 2016 Rio Olympics project is coordinated by Federal, State and City governments as well as by the Brazilian Olympic Committee through the Rio 2016 Organizing Committee but most of the efforts and decision power will be concentrated at city government level. Major decisions on the projects and companies to participate will be made from April/May 2010 with the consolidation of the Rio Organizing Committee and the creation of the Rio Business Office which will concentrate all the investments opportunities related to the World Cup and Olympic Games as well as other development plans for the city and state.
Estimated annual impact in the Brazilian GPD is US$11 billion (2009 to 2016) and US$13.5 billion (2017 to 2027) and the planned investments should result in 121,000 new direct and indirect employees per year (2009 to 2016) and 131,000 per year (2017 to 2027). The sectors of the Brazilian economy that will best benefit from the games will be:
- civil construction (10.5%)
- real state & rental services (6.3%)
- business services (5.7%)
- oil & gas (5.1%)
- telecommunication services (5%)
- logistics (4.8%)
Tourism in the city of Rio de Janeiro should increase 15 per cent in 2016 in relation to the previous year and the city of Rio will have to extend its hotel accommodation capacity up to 50,000 hotel rooms. The strategic regeneration of Rio’s historic Port area will be accelerated, resulting in a major new accommodation, entertainment and tourist district reconnecting the harbour to the rest of the city.
The city will have 4 clusters with specific needs and solutions (Barra, Deodoro, Maracana and Copacabana) and 11 permanent and 4 temporary sport installations will be constructed plus modernisation of existing ones with estimated budget of US$508 million. A BRT (Bus Rapid Transport) system will be implemented in the city to connect the planned clusters as well as modernisation and extension of metro lines with a total estimated cost of US$2.6 billion.
The remediation of Rodrigo de Freitas & Barra Lagoons and Guanabara Bay are also a priority that has an estimated cost of US$565 million.
Latest news and updates on the procurement processes can be found at: www.brazil2014-rio2016.com and www.brazilgames.icn.org.au
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