Brazil Increases Rio 2016 Olympic Budget: Daily

Public funds will pay for 57 percent of infrastructure projects in the city, the rest will be privately acquired.

By William Jones, Contributing Reporter

RIO DE JANEIRO, BRAZIL – Officials in Brazil have revealed that the infrastructure budget for the Rio de Janeiro Olympics in 2016 will be R$24.1 billion (US$10.76 billion). The figure is a lot more than first expected but is being viewed as a statement of intent to prepare the city, without the delays that the 2014 World Cup is currently experiencing.

Rio 2016 Olympic Budget, Rio de Janeiro, Brazil News

Rio’s new governor, Luiz Fernando Pezão, along with the minister of sport José Aldo Rebelo Figueiredo and Rio mayor Eduardo Paes, photo by Bruno Itan/Imprensa RJ.

The total cost of Rio 2016 has escalated to R$36.7 billion, which is significantly higher than the organizing committee’s 2009 estimation in that the games would cost R$28.8 billion. The infrastructure budget alone has been raised by around 25 percent and will cover expensive renovations to the city’s transport links such as the new metro line.

According to the mayor of Rio de Janeiro, Eduardo Paes, the reason for the jump in the budget is due to the inclusion of more projects in the city’s budget, as well as inflation. The mayor has also told the public that 57 percent of infrastructure projects in the city would be paid for with the use of public funds, while the rest would be privately acquired.

“We have no room to spare with Deodoro [the Olympic venue]. We cannot make a single mistake here. But there is still time to get it done,” Paes said at the budget announcement. He also added that the facilities, some originally built for the 2007 Pan American Games, were “on schedule”.

With two years to go the International Olympic Committee (IOC) has criticized Brazil’s progress while there have also been further complications at some construction sites for Olympic events where workers have gone on strike.

Read more (in Portuguese).

* The Rio Times Daily Updates feature is offered to help keep you up-to-date with important news as it happens.

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