Brazil’s Olympic costs up another $100 million on electric bills

Posted on February 01, 2016 01:28:44 AM | BREAKING NEWS

The price-tag for staging the 2016 Olympic Games in Rio de Janeiro has risen another $100 million, reflecting the cost of electricity generation, according to details announced by the organizing committee.

The event’s estimated costs have reached 39.07 billion reais ($9.8 billion), Globo newspaper said on Saturday. Security at Olympic sites, to be provided by the federal government, is still excluded from the total figure and would raise public costs even further, the paper said.

Sixty percent of the costs for arenas and sites only built for the event, including electricity generators, will come from the private sector, the paper reported, citing Rio Mayor Eduardo Paes. City, state and federal government will share the other 40 percent.

Games organizers reversed course in December after first saying that some 10,500 athletes may be charged for the cost of air conditioning their bedrooms in the Olympic Village.

The update on potential Olympic costs come at a time of a deteriorating fiscal outlook for Brazil, as Latin America’s largest economy heads toward the deepest recession in a century. Brazil’s currency, the real, plunged 33 percent in 2015, the most among the world’s 16 most-traded currencies.

The opening ceremony of the Summer Olympics will take place on Aug. 5.-- Bloomberg