The operating budget for the Olympics and Paralympic Games in 2016 has jumped 27% to Real$7 billion – that’s US$2.93 billion.
Officials told a news conference that the new total for the combined Games in Rio was less than London spent in 2012. The Director General of Operations, Leonardo Gryner, said that the overall costs have increased because of higher costs in technology, security, wages as well as payment for the use of property Olympic Village as well as factors like inflation. Further, four sports have been added since the bid was won in 2009 – rugby sevens, golf, paracanoe and paratriathlon.
Just over half the budget will come from local sponsors while the International Olympic Committee will contribute 21%. Around 13% is to be raised by ticket sales, 9% from international sponsors and 6% by licencing and other income. A quarter of the budget was originally supposed to come from government sources but officials said they would no longer take public money.
Separately, organisers announced that a budget of Real$5.6 billion, that is US$2.3 billion has been set aside for Games-specific infrastructure projects. Most of the total investment will come via public-private partnerships through federal, state and municipal administrations as well as the Brazilian government alone.
The total estimate is yet to be further revised in March – and then every 6 months – and does not include construction projects such as airports, ports, bus transit lines and other major transport infrastructure upgrades.
The Bloomberg news agency said last week that the total capital budget, comprising security, transport infrastructure, venue construction and other developments triggered by the Games, could be as much as Real$25 billion.
Meantime, Correios, the state-owned company which operates Brazil’s national postal service, has agreed a deal to become a tier one sponsor of the Rio 2016 Olympic Games - in the logistics category. Correios joins Bradesco (bank), Bradesco Seguros (insurance and financial services), Embratel (telecoms), Claro (mobile) and Nissan (autos). Interestingly, none of these companies are included in the group of some 12 corporations that together represent more than 50% of the total wealth generated by all listed companies in Brazil.