Total Rio 2016 budget rises by almost $100 million since August despite cuts

January 31, 2016 0

Inside the Games

Total costs for this summer’s Olympics and Paralympics in Rio de Janeiro have risen by BRL400 million (£69 million/$98.6 million/€91 million) in the last six months, despite the introduction of well-publicised budget cuts, it has been revealed.

The figure is mainly due to the rising costs of supplying temporary power as well as seating at venues, according to Marcelo Pedroso, President of the Public Olympic Authority (APO) responsible for monitoring Games-related spending.

When spending budgets from Municipal, State and National Governments are combined, in addition to private sector contributions, total spending now stands at BRL39.1 billion (£6.8 billion/$9.6 billion/€8.8 billion).

This marks an increase of approximately one per cent since the APO’s last cost review in August.

It is also a rise of almost 27 per cent from the original target of BRL28.8 billion (£5 billion/$7.1 billion/€6.5 billion) which was forecast for organising costs and wider-infrastructural spending when Rio de Janeiro was awarded the Games in 2009.

The impact of inflation and the declining value of the Brazilian currency has contributed to this difference.

The latest increase is a still a blow, particularly considering Brazil remains locked in the midst of its worst recession in 25 years.

Some work connected with the Games – including clean-up measures to reduce pollution concerns at the Guanabara Bay sailing venue – are also thought not to be included in this projection.

The cost of supplying temporary power at venues has accounted for an additional BRL290 million (£50 million/$72 million/€66 million), it is estimated, with this amount to be shouldered by the State Government.

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