April 17, 2014, 09:30 / Business

Brazil has promised to spend more than $16 billion on the 2016 Olympics

The authorities of Rio de Janeiro announced the adjusted budget for the 2016 Summer Olympics. Investments in the preparation of the Games are expected to amount to $16.3 billion (36.7 billion reais). ITAR-TASS reports this. In this case, 60% of all expenses will be covered by private businesses. This will be the largest investment in South America in the history of the Olympic Games.

The budget for the 2016 Games consists of three parts. In January 2014, it was announced that the costs of the Olympic organizing committee would be $3.1 billion (7 billion reais). This amount implied the cost of organizing and holding competitions, accommodation of judges and athletes, their movement during the Games and similar expenses, including food for volunteers.

Then in March, the State Olympic Administration announced that the budget for the construction of facilities directly related to the 2016 Games would be $2.4 billion (R$5.6 billion). This included the construction of the Olympic village, stadiums, and sports grounds.

The third part of the budget was the so-called “Olympic legacy,” which is estimated at $10.7 billion (24.1 billion reais). This amount covers 27 urban development and public transport projects, including the construction of an additional metro line and highways in Rio and environmental improvements. The state will pay for 57% of infrastructure costs, the rest of the investment will be private, Reuters reports.

The authorities of Rio de Janeiro have so far managed to avoid a significant increase in the budget of the Games. In 2009, when Brazil submitted its bid to the International Olympic Committee, it planned to spend a total of $12.8 billion (R$28.9 billion) on the Olympics. Taking into account inflation over five years, this is equivalent to $16.9 billion (38.1 billion reais).