Maracana 2014 World Cup Stadium Heavily Over Priced after Review

There are indications that Brazil’s Maracana Stadium, one of the stadiums scheduled to be used for the 2014 World Cup has been heavily over-priced after a two month analysis of the project.

After the court audit, Rio de Janeiro state officials had to reduce the project’s budget in $60 million on the arenas’ final budget. The project cost, therefore, has changed from US$ 602 million to US$ 540 million.

The project was bided, in June 2010, for $443 million, but right after that, the budget bumped up to $602 million due to the arena’s coverage cost, that needed to be demolished.

During the consolidation process and documentation delivery to the court, Rio de Janeiro state government had already altered the project’s budget to $586 million, $16 million reduction. Despite that, the court aided by the Union General Controller (CGU) still found traces of overpricing, about US$ 103 million, on the project’s financial budget.

According to the federal court’s process official, Mr. Valmir Campelo, there has been an intense negotiation process with the state’s technical department in order to get the budget reduced $540 million. With that in place, there is no other additional barrier for the state to receive the promised federal loans ($252 million) granted by BNDES Bank (Federal) for the Maracana’s renovation project.

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