The Board of Directors of Sport Club Internacional decided this Monday night (March 21st) to change the type of management for the refurbishment of the Beira-Rio Stadium.
Instead of carrying out the work with their own resources, as was planned in the original project which made sure that the club had due accreditation to host games of the 2014 FIFA World Cup™, the Board Members decided to use a model based on a partnership with a subcontractor, as defended by the current administration.
The club will allow 15 days for the building firms interested in taking on the project make new proposals. According to the changes approved by the Board of the Club, to be chosen the subcontractor should be willing to complete the refurbishment of the Beira-Rio at a set price, which means taking on the risk of possible increases in the cost of the work, in exchange for the exploitation of income from the stadium and also the area round the Beira-Rio complex.
In addition, the building firm will also agree to deliver the stadium in line with FIFA specifications and in time for SC Internacional’s stadium to host the Confederations Cup which will be held in the middle of 2013.
The Board of SC Internacional will also be required to hire the services of a consultancy firm specialized in management of stadiums, to provide the club with guidance about how to seek the best proposal and also judicial assistance to help in the preparation of the Contract.
The proposal was unanimously approved. Under pressure from the Board of Directors and also the Local Organizing Committee (Comitê Organizador Local - COL) of the World Cup, seeking a decision, the SC Internacional Board of Directors has been discussing the issue at meetings since March 2nd.
At that time, the Board of Directors presented a proposal made by building firm Andrade Gutiérrez as an alternative to the self-financing business model, which has been cast into doubt by FIFA since July 2010. According to the current Board, which has been in power since January, this model could make the club get deeper into debt.
Were they to insist on the previous proposal, the club could lose the privilege of hosting the World Cup games to the new Arena do Grêmio, which is being constructed by OAS in the North Zone of Porto Alegre. The self-financing model mentioned the payment of the costs of the work based on the money received from the sale of the old Eucaliptos Stadium (some R$ 30 million) and also the advance rental of 121 new suites at the Beira-Rio (each at a price of R$ 1 million) for a period of 10 years.
The terms of the partnership offered by Andrade Gutierrez, which sought to explore new commercial areas to be created with the refurbishment of the Beira-Rio, for a period of 20 years, were also cast into doubt. A group of Board Members presented a new option: that the Board decided on a partnership, while opening a time frame to receive new proposals.
The new option was accepted by the Board and the proposal was then accepted unanimously this Monday night. “This is a historic moment in the history of the club”, said Club President Giovanni Luigi soon after the results were announced.
New Time Frame
“Once the partner is chosen, there will be a period of 30, 40 or 50 days for the preparation of the contract”, said Mr. Luigi, adding that the signature of the contract with the building firm is expected to take more than two months. Until then, it will be up to the President to negotiate a longer time frame with the COL, which expected the solution of this apparent controversy in March.
Apart from Andrade Gutierrez, the building firm Engevix also made a proposal to the club. However, this proposal was rejected by the Board because plans were not made for the completion of the work for a set price, and also because it asked for club income as guarantee.
This Monday, the Board of Directors also announced the creation of a special Works Commission with 13 members of different groups within the club. The aim here is to follow the refurbishment work and also provide advice for the President’s office during the work on the Colorado stadium.