Friday, June 13th, 2014, 3 p.m.
Exactly three years from now, Brasília, Belo Horizonte, Salvador or São Paulo may host the opening game of the 2014 FIFA World Cup™. Brazil has exactly 1,095 days left to complete the work on the stadiums, expand the urban mobility systems and also modernize the airports to welcome the players, the journalists and also the supporters who will make their way over to the country of soccer to see the 2014 FIFA World Cup™. Ever since the country was chosen as the host country for the World Cup, back in 2007, a total of 1,323 days have already gone by, many of which were lost thanks to administrative problems, disputes by inspection authorities, difficulties in getting financing, and a host of other problems arising from lack of planning.
To mark this date, the team of journalists at the 2014 Portal has checked the progress of the main projects, city by city. The stadiums, which are the main items for the hosting of the World Cup, are still progressing, except in São Paulo, where the work has not got past the land leveling stage, and Natal, where there has been no sign of any work so far. The main problems found are in those very projects that could leave some kind of legacy to the country: urban transport systems and airports. So please check out the situation throughout the country.
Stadiums
On the Brazilian candidacy for the World Cup, back in 2007, the Brazilian Soccer Confederation (Confederação Brasileira de Futebol – CBF) presented a budget of US$ 1.1 billion (which at that time was about R$ 1.94 billion) for the construction or refurbishment of 18 stadiums.
However, after the selection of the 12 host cities, in 2009, what we have seen has been a complete backtrack on this route. The cost of the stadiums has soared and now stands in the region of R$ 6.75 billion and should increase even more, as many of the contracts do not include items such as the purchase of seats, floodlights, playing fields and also intervention in the areas surrounding the Arenas.
Together with the increase of 348% in the budget of the stadiums, the financing model has also changed. Only Curitiba, Porto Alegre and São Paulo will have private funds included in the projects for the Arenas.
Even so, the City Hall of the capital of Paraná will have to release funds totaling R$ 90 million in building potential for the work on the Arena da Baixada, while the capital of São Paulo will have to surrender a total of R$ 420 million in taxes for the Itaquerão.
Even with the abundance of resources, the work is progressing slowly. No stadium has managed to get authorization for loans from the National Bank of Economic and Social Development (Banco Nacional de Desenvolvimento Econômico e Social - BNDES), which awaits the review of contracts or the presentation of executive projects.
Urban Mobility
Among the projects earmarked for the 2014 FIFA World Cup™, those of urban mobility call less attention and, maybe for this very reason, they are also further behind. Out of the 50 urban mobility projects which are considered as top priority to improve the travel of the population and also supporters in the host cities, totaling a financial investment of R$ 11.8 billion, only two have even started.
A study by the Federal Government reckons that 58% of the projects for monorail systems, Light Rail Vehicles, Bus Rapid Transit (BRT) systems and expressways have run behind schedule. This has led the Brazilian President, Dilma Rousseff, to say that, if the work does not get under way by December, then the projects will be downgraded from the Special Growth Acceleration Programme (PAC) for the World Cup to the ordinary PAC, with the loss of more favorable financing conditions.
The host cities have alleged a host of different problems as causes for the slow pace. One of the problems is that of compulsory purchases. During a meeting with Ms. Rousseff last month, the Mayors requested less strict conditions for the removal of the local residents. The justification here is that bureaucracy would be getting in the way, preventing the projects from moving ahead.
The situation is definitely a cause for concern. A United Nations report published in April suggests that the World Cup work has violated the right to housing in the cities of São Paulo, Rio de Janeiro, Belo Horizonte, Curitiba, Porto Alegre, Recife, Natal and Fortaleza.
Aside from rough treatment, the difficulties in making the projects move ahead can also be seen in the lack of funding for this work. Five cities have not managed to get loans from the Federal Savings Bank (Caixa Econômica Federal – CEF), which manages the World Cup PAC (Manaus, Recife, Fortaleza, Natal and Brasília).
Some of the host cities have started to back down: the Governor of the State of Amazonas has said that the monorail project and the BRT in Manaus are not necessary for the World Cup; Fortaleza has reduced the number of projects.
Cuiabá, Recife and Salvador have not yet decided whether they will use the Bus Rapid Transit (BRT) system or a Light Rail System, which is like an overground metro system. São Paulo plans to burn more than R$ 1 billion of PAC projects for a monorail project 30 km from the stadium to be used.
Airports
Often considered the main Achilles’ heel in Brazilian preparation for the 2014 FIFA World Cup™, the 13 World Cup airports are poised to receive some R$ 5.23 billion in investments. There are plans for 24 work projects, but only five are in progress. Under the responsibility of the Brazilian Airports Authority (Infraero), 16 intervention projects have already been postponed.
This scenario has led to criticism from the FIFA President, Joseph Blatter, and also from the Secretary-General of this institution, Jérôme Valcke. “We may have to ring bells in Brazil to say that the World Cup will be in three and a half years”, Mr. Blatter said six months ago.
In April, the warning was stepped up through the launch of a study conducted by the Institute of Applied Economic Research (Instituto de Pesquisa Econômica Aplicada - IPEA). According to this study, the work on nine airports will not be ready before 2014, which could lead Brazil to an embarrassment of global proportions.
Until then, Infraero plans to install temporary terminals in five airports to reduce the problems caused by the increase in demand. The puxadinhos, a term which could be translated as “the hasty ones”, will be in Brasília, Porto Alegre, Cuiabá, Campinas (SP) and Guarulhos (SP).
In March, the Government created the National Secretariat for Civil Aviation. The first move was to grant concessions for three airports to private enterprise. The airports at Guarulhos, Viracopos and Brasília will have private investors, with Infraero participation of up to 49%. The forecast is that the airports at Confins (MG) and Galeão (RJ) will also pass through this process.
Twelve Host Cities
Belo Horizonte
Stadium: working to schedule but without executive project.
Mobility: changes in executive projects have postponed the intervention work for 2010 and 2011.
Airport: refurbishment of terminal is being tendered.
Brasília
Stadium: Prosecution Office threatens to cancel contract due to lack of financial guarantees.
Mobility: Light Rail project started work in 2009, now stopped because of irregularities.
Airport: work should get under way in August 2012.
Cuiabá
Stadium: out of Confederations Cup and already seven months late.
Mobility: Government still undecided between the BRT and Light Rail. Compulsory Purchases not yet started.Airport: Refurbishment of terminal and road system expected to start in March 2012.
Curitiba
Stadium: cost increased by up to 63%; construction firm not tendered for.
Mobility: Government had to review projects, causing delays to tenders.
Airport: projects being tendered.
Fortaleza
Stadium: out of Confederations Cup, this stadium was one of the last to start work.
Mobility: work on the Light Rail System, on the Bus Rapid Transit (BRT) system and the expansion of key avenues has been postponed for at least nine months.
Airport: Invitation to Bid not yet published.
Manaus
Stadium: out of Confederations Cup, has allegations of overpricing.
Mobility: Monorail and BRT have not got under way, Government threatens to throw in the towel.
Airport: Invitation to Bid for refurbishment of the terminal was launched in May.
Natal
Stadium: This is the stadium which is furthest behind in the World Cup, having not yet started.
Mobility: refurbishment of the main roads of the city is running one year late.
Airport at São Gonçalo do Amarante: consortium will be chosen on July 19th.
Porto Alegre
Stadium: the cost has increased by 93% after the outsourcer came into the project.
Mobility: Government has not managed to hire 90% of the projects.
Airport: Projects now being tendered.
Recife
Stadium: Prosecution Office disputes the tender for the Public Private Partnership (PPP).
Mobility: Government undecided between BRT and Light Rail. Delays already come to five months.
Airport: implementation of the new control tower planned for January 2012.
Rio de Janeiro
Stadium: the budget increased from R$ 705 million to almost R$ 1 billion, a rise of 41%.
Mobility: the Transcarioca BRT project started in February, nearly 1 year late.
Galeão Airport: Refurbishment of Terminal 1 in progress.
Salvador
Stadium: The cost could have risen from R$ 591 million to R$ 835 million, an increase of 41%.
Mobility: Nine months behind schedule, the Government of the State of Bahia has not yet decided whether to implement a Light Rail System or a Bus Rapid Transit (BRT) system.
Airport: Refurbishment of the terminal scheduled for June 2012.
São Paulo
Stadium: work recently started but without financial guarantees; cost has risen by 52%.
Mobility: Government to use financing for work not connected with World Cup.
Guarulhos Airport: Invitation to Bid for concession of Terminal 3 should start in December.
Viracopos Airport: Construction of new terminal to start in June.
*Reporting and Text: Rafael Massimino and Diego Salgado. Editing: Marcos de Sousa
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04/05 | News
