Rio 2016 Olympics Costs Already at US$ 568 Million, Organization Says

05/15/2015 - 09h54

The Organizing Committee of the Rio 2016 Olympics has registered US$ 568 million (R$ 1.7 billion) in expenses in April, according to the organization. The amount represents 22% of the total budget of US$ 2.4 billion (R$ 7.4 billion).

Another portion of US$ 334 million (R$ 1 billion) should be applied to contracts in which bids are already open or are expected to begin in the coming weeks.

"The goal is to reach the end of this year with 85% to 90% of closed negotiations," says Tania Braga, of the committee.

The institution is responsible for the operational part of the Games, such as buying food for athletes, furniture and transportation of delegations.

Therefore, the figure does not include the expenses of governments with sports facilities and public infrastructure.

Of the total of 285 companies that are already suppliers of the committee, 257 (90%) are Brazilian -a prioritization of national groups is one of the criteria.

Environmental and social requirements have also been adopted by the entity, such as wood procurement from approved areas and the compliance of textile companies to employment laws.

"The companies' change of mentality in relation to sustainable procurement can be a legacy of the Games," the executive said.

The committee's budget is formed entirely by private funds.

Most of it comes from local sponsors (40%), contributions from the International Olympic Committee (25%) and ticket sales (16%).

Translated by CRISTIANE COSTA LIMA

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	Ricardo Moraes - 26.fev.2015/Reuters
	An aerial view of the construction site of the Arena of the Future venue at the Rio 2016 Olympic Park