Government finances World Cup stadiums.
A report in today's Folha de São Paulo newspaper states that public money is paying for more than 60% of the construction projects for the 2014 World Cup in Brazil.
247 – Even with public-private partnerships (PPPs), the government is funding more than 60% of the stadium construction for the 2014 World Cup. This is according to the Folha de São Paulo newspaper this Monday. According to the Federal Public Prosecutor's Office group that is monitoring the event's preparation, this does not fit the planned model, in which the private sector finances and executes a specific service in exchange for the right to a concession.
In Salvador, public funding could reach 80% of the budget for the reconstruction of the Fonte Nova stadium. According to the publication, even with the PPPs (Public-Private Partnerships), the governments of Bahia, Ceará, and Pernambuco received a total of R$ 1 billion from BNDES (Brazilian Development Bank) to build arenas that will cost, together, R$ 1,76 billion. "The governments report that the public-private partnership model was approved by BNDES, which created specific financing for the World Cup in Brazil."
The states of Minas Gerais and Rio Grande do Norte are awaiting analysis of public funding for the construction and renovation of their arenas.