The World Cup 2014
will be in Brazil.
Read news about the World Cup 2014 in Brazil.
June 8th, 2010
A few weeks ago, FIFA manifested preoccupation with the delays in the works for the World Cup 2014. The Brazilian Local Committee started an auditing in all host cities, to check out how the works in the stadiums were going.
However, as the Minister of Tourism recently declared, even more than stadiums, the concern is with airports. Stadiums can be shut down during refurbishment, and more money can be pumped into them to speed up the works; however, in airports (most of which are already working above capacity), any move which impacts the existing flow of passengers must be carefully planned.
The Brazilian Government acknowledged the problem, and issue the Provisional Measure 489 – MP 489 – see ful text here (in Brazil, a MP must be confirmed by the Congress, but it is enforced as law since its publishing by the President of the Republic) allowing to Infraero more flexibility to hire contractors.
The MP also created the Olympic Public Authority (APO), a body whose goal is to guarantee tha Brazil and Rio will comply with the demands of the Olympic Committe regarding the Olympic Games of 2016. Article 11 of the MP determines that all biddings related to the APO and to the infrastructure of airports necessary to the realization of the World Cup 2014 shall be regulated by the MP.
The two main changes are: electronic auctions (bids are made over the internet) are now allowed; the bidded price will be ranked first, and only afterwards will the technical and financial qualifications of bidders be evaluated.
According to Infraero, the new legislation “will permit faster bidding process, will alllow fewer appeals to bidders, and will lead to faster conclusion of works”.
Some specialists, however, say that the MP is illegal. For them, the flexibilization of the bidding law is allowed only in cases of emergency or perils, and not in situations caused by the omission of the Government.
In 2007, Rio hosted the Pan American Games. The initial estimative was that the event would cost US$ 200 millions in infrastructure; a few months before the Games, the works were delayed, there were also changes in the bidding process; as a result, the final cost shot up to more than US$ 2 billion (see here and here).
Anyhow, despite the controversies, Infraero can now try to speed up the building and refurbishing of airports.