beyondbrics

By Andrew Downie in São Paulo

More news about Brazil’s World Cup preparation and guess what, it’s news about delays and overspending.

The São Paulo arena earmarked to host the opening game three years from now has yet to get off the drawing board. Now reports say builders Odebrecht quote the new price of the stadium as 1.07bn reais, almost three times the original price.

Most infrastructure projects – and almost every sporting event – suffer from cost overruns. Brazil has its own experience with the 2007 Pan American Games, which was six times over budget and left almost no hotel, transport, security or infrastructure legacy for the citizens of host city Rio de Janeiro.

What’s so unusual about the huge rise in the cost of the São Paulo venue is that it comes so soon after the initial estimate.

Corinthians, São Paulo’s biggest club but the only one without its own stadium, only announced it would build the arena last August.

The initial cost was 350m reais for a 48,000-seat ground a price that rose to 650m reais for a stadium with the 65,000 seats necessary to host the opening match.

Brazil is in the midst of a construction boom and inflation is rising but those aren’t the main reasons for the mega increase. Some reports say the rise is tied to the discovery of an underground stream that will now have to be channeled. And two ducts owned by state-oil company Petrobras also run under the area, causing further headaches.

Finally, FIFA’s repeated meddling in the project – it apparently demands the stadium have almost 30 lifts – have played a part in elevating costs.

Quite why builders didn’t know about these factors when they first presented estimates is anyone’s guess. Odebrecht on Thursday said they were merely hired by Corinthians and can’t discuss figures. They passed all responsibility to the club, which didn’t return calls.

The upshot of it all is that Brazil’s biggest and most important city looks less and less likely to host the World Cup’s opening match.

Capital Brasilia has emerged as the new favourite. It has already started work on its stadium. And it’s only expected to be a third over budget.