Infrastructure Remains a Concern in Brazil Ahead of Mega-Events

Ahead of the 2014 World Cup and the 2016 Summer Olympics, infrastructure concerns are rapidly increasing in Brazil.

President-elect Dilma Rousseff has pledged to rebuild and revitalize airports, roads, ports, railways and power plants as part of efforts to improve infrastructure. Her administration may create an agency or secretariat for aerospace issues, Valor Economico newspaper reported Nov. 23.

Such a plan “makes sense,” Rosangela Ribeiro, an analyst at brokerage SLW Corretora said in a phone interview from Sao Paulo. “We have a big infrastructure problem, and this jeopardizes the flights. I think it can have a positive result.”

Rio Must Act to Avoid Airport `Disaster' Before World Cup, Governor Says
Bloomberg
December 17, 2010

Qatar's World Cup Infrastructure to be FInished in '7 Years'

Qatar's Prime Minister is pledging to finish all of the country's 2022 World Cup-related infrastructure projects within 7 years.

Hamad bin Jassim bin Jaber Al Thani said: “All our infrastructure shall finish in seven years maximum”.

Qatar PM: Infrastructure "shall finish in 7 years"
Construction Week Online
December 16, 2010

$100 Billion In Infrastructure for Qatar

Economists are predicting more than $100 billion (USD) worth of investment in infrastructure ahead of the 2022 World Cup in Qatar. Much of that investment is expected to be through public-private partnerships.

A compelling statistic the report reveals is the present value of major infrastructure projects currently under construction in Qatar which amounts to over US$55Bn, around half of the estimated US$100bn to be awarded in the near future.

"The build-up to the World Cup will give additional momentum as well as push ahead the time frame of these projects," added James.

...More than $75bn has been invested in this sector since 2004.

''World Cup Will Spur'' Qatar's $100bn Infrastructure Projects Market
The Peninsula
December 5, 2010

Critic: Long-Term Impact Unlikely from Russia's 2018 Investment

Critics argue that the $10 billion investment Russia plans for its infrastructure ahead of the 2018 World Cup won't be enough to make a long-lasting impact on its cities.

Yulia Tsyplyayeva, chief economist at Moscow's office of BNP Paribas, said Friday that Russia badly needs structural reforms but the World Cup is unlikely to give an impetus to them.

Russian cities to get hollow World Cup facelift
Forbes
December 3, 2010

Infrastructure Cited As Main Concern for Brazil

Infrastructure is causing major concerns in Brazil, where officials are hoping to continue the country's growth in power among world economies.

Sun-drenched fields produce grain twice as fast as the rest of the world, but getting that grain to port across unpaved roads can cost almost half its value. Mineral deposits lie untouched for lack of rail lines to move them to markets.

Investors drawn to the country's sophisticated financial markets struggle to travel between major cities because congestion leaves airports in chaos. (Graphic on Brazilian infrastructure: link.reuters.com/qyt23p)

These problems will not prevent Brazil from emerging as a major world economy, said Edemir Pinto, Chief Executive of the BM&FBovespa (BVMF3.SA) exchange operator.

Brazilian infrastructure lags behind the boom
Reuters
November 24, 2010

Airports a Potential Embarrassment for Brazil

The Brazilian Sports Minister is warning that the country's airport infrastructure will be an embarrassment for the country during the 2014 World Cup and 2016 Summer Olympics in Rio de Janeiro if not improved.

Orlando Silva warned that not enough progress was being made in improving airports in the vast country which depends almost exclusively on air transport for long-distance travel.

"Today, I have a very strong concern about our airports," Silva told reporters during the Soccerex conference.

Brazil's airports a potential embarrassment: minister
Reuters
November 23, 2010

Brazil's Airports Blasted as Unready for Crowds

Brazil's airport infrastructure has been blasted by an official at a major airline association as being unready to host crowds associated with the 2014 World Cup and 2016 Olympics.

The language used by Giovanni Bisignani, CEO of the International Air Transport Association, to describe Brazil's overwhelmed airports at an industry conference Thursday was some of the harshest criticism yet leveled at the nation on the topic.

"Brazil is Latin America's largest and fastest growing economy but air transport infrastructure is a growing disaster," he told industry leaders at a meeting of the Latin American and Caribbean Air Transport Association in Panama. The organization represents 230 airlines around the world.

Air transport group critical of Brazil's airports
November 19, 2010

New Terminal Opens at Sochi Airport

A new $200 million USD terminal has opened at the Sochi airport, the first of the city's broad Olympics-related projects to complete.

The terminal is the first major facility commissioned for the games and ticks off a box on Russia’s long to-do list in preparation for the event.

The new terminal is fully operational and services both domestic and international flights. It boasts the latest know-how in ecological and resource efficiency and the most modern equipment, the company said in a statement.

New Sochi Airport Terminal Opens
The Moscow Times
September 17, 2010

Sochi Olympics Fuel Transportation Infrastructure Spending

Transportation infrastructure spending is on the rise on Sochi, Russia, site of the 2014 Winter Olympics. Industry officials expect the national market to increase 4% to roughly $23.5 billion USD.

Spending to build roads and bridges for the 2014 Sochi Olympics has already peaked, he said, as the projects are slated to be operational in 2012.

Despite the impressive size of Russia's road construction market, it has no foreign contractors because of the high entry barriers, Mozalyov said.

Infrastructure Spending Is Rising, Builders Say
The Moscow Times
September 17, 2010

Critic Blasts Russia's World Cup Bid

Only two of the 13 proposed host cities in Russia have the adequate infrastructure to host such an event, according to Russian sports expert Yury Ivanov. He calls the bid a big waste of money, and largely at the whim of Prime Minister Vladimir Putin.

The sports expert says that one can compare Russia’s situation with South Africa’s in the run-up to the world cup this year. Pretoria spent some three billion dollars to get ready, Ivanov says, but “Russia’s expenses, considering all [its] problems with corruption will be one and a half times greater.”

The idea of pursuing the world cup, the writer says, “according to rumors belongs to Vladimir Putin,” and that explains why “the tactics of the struggle of the Russian Football Union … repeat the pattern of the struggle for the Olympiad in Sochi: Everything is being build on the basis of the personal guarantees of the prime minister.”

Putin’s Pursuit of Sports Glory Busting Russia’s Budget
Georgian Daily
August 23, 2010

The Preparation Challenge for Brazil

As Brazil prepares to host the 2014 World Cup and the 2016 Olympics, much sport-related work is underway. But beyond the fields and venues, the country has major infrastructure, transportation and safety issues to address.

About 60 percent of the sports venues are already completed because Brazil hosted the 2007 Pan American Games and -- with an eye toward capturing the big prize -- built those facilities to Olympics specs.

But billions of dollars of sports-driven projects from port renovation and airport overhauls to the construction of major highways, transit systems, stadiums and an Olympic Village complete with a beach are planned. Besides accommodating the influx of fans, athletes and officials, the goal is to leave a lasting legacy for Brazilians.

Brazil getting extreme makeover in preparation for Olympics
The Miami Herald

Sochi: Hard at Work

With many major infrastructure projects underpinning its hosting duties for the 2014 Winter Olympics, the Russian city of Sochi is hard at work transforming itself into an international sporting area.

It means the construction of a new winter community in the North Caucasus mountains, the construction of 300 kilometres of roads, 100km of rail, 39 tunnels and 24 thermal and hydro power stations.

"We are well on track," asserts Mr Chernyshenko, a native of Sochi who was handed the games' baton five years ago.

"Our construction site is now probably competing in terms of size with London's," he says.

Sochi games boss in 2014 Olympic marathon
BBC
August 19, 2010

Brazil's Long-Term Benefits

A new study out has examined the investments Brazil is making in infrastructure ahead of the 2014 World Cup and how those investments can turn into long term benefits for the country.

This summer, Ernst & Young and the Getulio Vargas Foundation (FGV) set out to provide answers to such questions. In late June, the two organizations released a sixth installment of their Sustainable Brazil series, entitled “Social and Economic Impacts of the 2014 World Cup”.

The study includes analysis of the socioeconomic impacts of the World Cup and how to make the World Cup “greener,” and it aims to identify ways in which Brazil can ensure that “the event lasts not only a few days, but many years, leaving a positive legacy for society as a whole.” It’s an issue that TheCityFix has explored before, when we considered the legacy of the Olympics. The recent Brazil study predicts that the country’s economy will “snowball,” growing by more than five times the R$22.46 billion (US$12.8 billion) spent by Brazil to ensure adequate infrastructure and organization.

This means that in total, from 2010 to 2014, an additional R$142.39 billion (US$81.39 billion) will flow in Brazil, creating 3.63 million jobs per year, and R$63 billion (US$36 billion) in additional income for the population.

Brazil’s Green World Cup
The City Fix
August 18, 2010

Huge Costs Expected for Russia's 2014 Olympics

Sochi, Russia's 2014 Winter Olympics could end up costing nearly £20 billion (~$31 billion USD), which some residents see as a waste of money. Much of the high cost is due to large infrastructure projects, such as a tunnel road that's expected to cost roughly $7.8 billion.

With four years still to go, that figure will dwarf overall spend for Canada's Vancouver Olympics of about £3.5bn.

The 2014 Games in Sochi, on Russia's southwestern coast, are already dogged by massive controversy and allegations of corruption.

Many homes are in the process of being demolished to make way for the six-stadia Olympic Park.

Russia Pays High Price For Winter Olympics
Sky News
August 11, 2010

Brazil's Infrastructure Ranks Low

A new report blasts Brazil's infrastructure as some of the worst in the world.

“We spent decades without making investments and that led to growing problems now showing in the current state of our infrastructure,” LCA Consultores chief economist Braulio Borges, who authored the study, said.

Port infrastructure was responsible for Brazil’s appearing at the bottom of the list with an alarming 2.6 points, wide apart from the 4.2 world average. In railroad quality, Brazil’s 1.8 points were ranked only better than Colombia’s. World average railroad quality was 3.1 points.

Brazil faring poorly in infrastructure quality
Buenos Aires Herald
August 14, 2010

Infrastructure Brazil's Limiting Factor for Foreign Investment

Infrastructure tops the list of concerns for business people considering investing in Brazil, according to a new report. Transportation is an especially sore spot for the country as it prepares to host the 2014 World Cup and the 2016 Summer Olympics.

This is an excerpt of a new report from UK-based bank HSBC, Brazil unbound: How investors see Brazil and Brazil sees the World.

In our survey, nearly one half of respondents (49%) point to “low standard or costly infrastructure including telephones, transport networks and utilities” as the main operational obstacle, far more than selected corruption, poor governance (34 percent) or skills shortages (32 percent), the state of transport infrastructure is particularly dire. In spite of some improvement in logistics, freight depends on costly road haulage; there are few railroads; the potential for waterways remains largely unexplored; and ports and airports are congested. This can add one quarter or more to the cost of getting goods to market, say investors.

Investing in infrastructure has been at the heart of President Luiz Inácio Lula da Silva’s growth program (the so-called PAC, launched in 2007), but progress has been limited. Fewer than half of the targets for 2010 have been met (with much of the proposed financing going to first-time home owners, rather than into physical infrastructure). High public spending commitments are crowding out the paltry 1 percent of GDP that is proposed for investment in infrastructure, while limited private sector investment in transport will not make up the shortfall.

Brazil: Shaky Infrastructure
Latin Business Chronicle
August 2, 2010

Zuma: $4.3 Billion Was Worth It

South African President Jacob Zuma says the 33 billion Rand (~$4.3 billion USD) spent by the national treasury to host the World Cup was a worthy investment. He specifically cited long-term improvements to communications and transportation infrastructure, as well as social improvements.

But the social impact had been even greater, he said, as black and white fans packed into stadiums and fan parks together, 16 years after the first all-race elections ended white-minority rule.

"The social benefits are priceless. We have seen remarkable unity, patriotism and solidarity being displayed by South Africans, which has never been witnessed before," Zuma told an investment meeting.

Zuma hails World Cup benefits
Sport 24
July 7, 2010

Report Claims Benefits Already Seen in South Africa

A financial consulting firm reports that South Africa has already seen an economic benefit from hosting the World Cup.

International communities were not only watching their countries fight for the cup, but were witnessing a South Africa that continued to emerge as a competitive 21st-century economy, the consultancy said in a paper entitled "2010 Fifa World Cup, a turning point for South Africa".

"South Africa is reaping the rewards of hosting the cup - namely infrastructure improvements, an economic boost, and increased national self-esteem," it said.

South Africa had been described as a mix of the developed and developing world, said Deloitte Southern Africa public sector industry leader Lwazi Bam.

SA has begun reaping rewards of staging World Cup, says Deloitte
Cape Times
June 21, 2010

German Companies Provide Infrastructure for South Africa's World Cup

German companies played a large part in providing infrastructure and construction services for the 2010 World Cup in South Africa, according to Southern African German Chamber of Commerce and Industry CEO Matthias Boddenberg.

Engineering and special equipment material for the stadiums was sourced to a large extent form Germany. The total investment in the 2010 FIFA World Cup infrastructure projects amounted to about R35-billion, he adds.

The infrastructure pro- jects that German companies were involved in included roads, the bus rapid transit system and the Gautrain. The total infrastructure project, valued at R450-billion, is ongoing beyond the FIFA World Cup as it is an infrastructure legacy project, explains Boddenberg.

Germany extensively involved in World Cup infrastructure
Engineering News
June 18, 2010

Brazil Eyes $20 Billion Investment in 2014 World Cup

Brazilian Sports Minister Orlando Silva has said the country will need to invest moe than $20 billion in stadia, transportation and infrastructure as it prepares to host the 2014 World Cup.

Silva said Wednesday that 53 transportation projects were in the planning stage and some had already been contracted.

Brazil: We must spend $20 billion on World Cup
Associated Press
May 20, 2010