Alan Long, Principal Commercial Officer, and Patrick Levy, Commercial Specialist U.S. Consulate - Rio de Janeiro, Brazil
Rio de Janeiro will host the first-ever Olympic Games in South America in August- September 2016, as well as some of the games for the 2014 World Cup and the World Military Games in July 2011. These events will generate numerous trade and investment opportunities in several areas, for both games and the city.
A great time for Brazil and for Rio
Political alignment/economic growth
First South American Country to host the Olympics.
Elections in 2010/confidence that plans will move forward
A chance to improve Brazil’s infrastructure and housing through PPP on all levels of government.
Over US$ 50 billion in investments from 2010-2016 for the World Cup and the Olympic Games
Special tax incentives likely to attract FDI
Projects are moving forward quickly due to harmonious relationships among all levels of government
Preparations are being made for the:
Military Games – 2011
Soccer Confederation Games – 2013
World Cup in 12 cities in 2014
Olympics and Special Olympics in 2016
Urban Development plans to pass on benefits after the games
These events are catalyzing infrastructure development
Olympic Public Authority:
Possibly led by Minister of Sports Orlando Silva
Responsible for all procurements
BNDES: national development bank w/HQ in Rio
Lending and investments to support infrastructure development for World Cup, Olympics, PAC
U$1billion for new hotels – more needed
Co-finance agreement in pipeline with Ex-Im
SENASP (Ministry of Justice): responsible for security
Mayor’s office – Special Olympics Secretariat
Responsible for management, oversight, planning
Various projects planned linked to urban development
Building on PAG infrastructure
Transportation between Barra and Rio
Hotels (17 already licensed)
Stadiums (Olympics and World Cup)
Green Building Initiative
Port and Downtown Renewal
Secretary of Sports, Tourism and Leisure
Secretary of Transportation
Secretary of Development
Secretary of Public Works
liaising with Federal and Municipal Governments
The Olympic Committee (COB), with a budget of over US$ 2.5 billion for the organization and realization of the Games
Brazilian Soccer Federation (CBF) works with FIFA to plan and administer the World Cup Games
The Brazilian Economic and Development Bank (BNDES)
Rio Construction Association (Sinduscon Rio)
Rio Federation of Industries (FIRJAN)
American Chamber of Commerce (AmCham)
Brazil-U.S. Business Council
Ex-Im Bank (increasingly active in Brazil)
OPIC (Housing, project finance, guarantees)
USTDA (With an office in São Paulo)
Energy efficient technologies
Security (a Trade Mission will come to Brazil in September)
Note that all procurement for the games will be done through Public Tenders, not yet opened as of August 2010.
To participate in those tenders, foreign companies are required, by law, to have a local presence (agent, representative, joint-venture, or distributor).
Companies that doesn’t participate directly to the tenders may sell products or services to the bid winners – but, again, the need for a local presence is required.
The Olympic Committee and some Governmental entities prefer not to receive visits of private companies, as this could preclude those companies to participate in tenders.
In this case the recommendation for interested companies is to attend to upcoming Trade Shows.
An “unofficial” requirement for interested parties is:
PREVIOUS EXPERIENCE WITH SPORT EVENTS
Be it in the building or renewal of sports arenas, supply of products and services for it, or even with previous Olympic Games.
Un-experienced companies may not be considered as potential suppliers.
WORLD CUP 2014 (Held in 12 Brazilian Cities)
Infrastructure: US$ 51 billion
Stadiums: US$ 2.7 billion
Airport renewals: US$ 3 billion
TOTAL: US$ 56.7 billion
(Not including the High Speed Train Rio/Sao Paulo, which might not be ready by 2014, and which is valued in US$ 20 billion)
Although more than half of Rio 2016 venues are ready since Rio hosted the 2007 Pan American Olympic Games, about 20 new facilities will be built:
Aquatic sports stadium - US$40 million.
Olympic Park to host gymnastics, cycling, handball, etc. - US$200 million.
Olympic village - US$450 million.
Olympic Tennis Center -US$45 million
Rowing stadium at Rodrigo de Freitas Lagoon - US$2 million.
Copacabana Beach Volley Arena-US$7 million.
Maracanã Stadium renovation- US$400 million before 2014.
30 hotels planned to handle increase in visitors.
17 licenses so far
Several hotels are being refurbished.
taxes incentives will create opportunities for refurbishment, building, acquiring or operating hotels.
Olympic Village Clinic.
3 new state-of-the art hospitals
Estimated investment in infrastructure~US$50 billion, including US$5 billion in logistics upgrades at seaports and airports.
The main projects include:
Modernizing and enlarging two airport terminals
Highway widening to accommodate “Olympic lanes”
The Port of Rio revitalization to include a new 30,000 square meter leisure area featuring bars, restaurants, an amphitheater, museum, aquarium, a multi-use space and parking (R$4b)
Two new subway lines (R$4b)
Bus Rapid Transit (BRT) system (U$1b)
Housing projects (including low income housing)
The Sports Events Expo , focused on solutions, innovations, infrastructure, technologies, products and services, to be held at the Riocentro from September 22-24, 2010 ( http://www.sportseventsexporio.com.br/a_feira/6/apresentacao ),
The Expo Estadio 2010 , which will cover the design, construction, furnishing, maintenance, management and operations of stadiums and sport venues, to be held at the Sul America Convention Center from October 6th to 8th, 2010 ( http://expoestadio.com.br )
Rio Infrastructure, event directed towards the heavy construction industry. It will bring together manufacturers of machinery, equipment, accessories and supplies, giving them the opportunity to exhibit their products, services, innovations and trends to the entire sector. It will be held at the Riocentro on November 17-20, 2010. ( www.rioinfraestrutura.com.br )
The Soccerex Global Convention , with experts from football and business tackling global issues and focused topics currently affecting the industry in a series of panels, one-to-one interviews, keynote addresses, presentations and workshops. It will be held at the Copacabana Fort, from November 20-24 (business portion from November 22-24, 2010) ( http://www.soccerex.com )
The Green Building Brazil International Conference - In its first edition, the International Conference of the Green Building Council Brazil will be the forum for discussion of the segment, with the goal of enhancing the benefits and concepts of sustainable construction industry - September 1-3, 2010. ( http://www.expogbcbrasil.org.br )