World Cup Brazil 2014

Since 2007, Brazil knew that we would host the World Cup, and since May 2009, the host cities knew they would stage matches; even so, after all this time, very little has been done to prepare Brazil for the World Cup (there are delays in stadiums, airports, telecom, transportation, etc).

Below, a few reasons which attempt to explain the delays.

First: cultural habits. Brazilians (particularly Governments) do not have the habit of planning, and, if planning, do not have the habit of keeping to the planned. Any foreign visitor who needs to have an appointment with a doctor knows that Brazilians do not keep time. A national institution in Brazil is the jeitinho, which could be translated as “not doing things the proper and timely way, but trying to make ends meet in a cunning way at the latest time”; unfortunely, FIFA doesn’t tolerate such methods.

Brazil lacks the money. Building a stadium, opening new highways, refurbishing airports, all this costs lots of money. Despite the enthusiasm that Governors and Mayors have demonstrated towards the economic potentials of a World Cup, the money isn’t in the coffers yet, and budget limitations sooner or later bring things to reality. A city such as Natal has a budget of about R$ 8 billion (source), and clearly can not invest R$ 1 billion for the Cup.

Legal limitations. Nine out of the twelve stadiums of the World Cup will be built or refurbished by the Governments. All Government contracts must follow an specific law; this law imposes minimum periods for bidders to present proposals – and if a bidder disagrees with the results, a dispute in Courts may last years.

After the bidding process is finished, then Government and contractors must get all apropriate licenses, such as technical, Historic heritage, environment approvals. Getting licenses to build a new draining and sewage system carved under an old heritage stadium such as Fonte Nova, in Salvador, following all applying norms, can take a lot of time (things could be sped up if they had been planned before hand, but they were not).

Private stadiums (only three: Morumbi, Arena da Baixada, Beira Rio) are not restrained by the bidding laws. On the other hand, the owner of the stadiums will think twice before investing their money in an enterprise with unknown returns: is it worthy to invest US$ 200 million in a stadium to stage three or four matches?

Each of these factors could delay a project for a few months; put them all together, and the result is a several months delay.

This entry was posted on Monday, May 17th, 2010 at 4:08 pm and is filed under business, cities, infrastructure, stadium.