After 3 Years, Rio Still Hasn't Received Anything for the Maracanã Concession

09/29/2016 - 12h24

Three years after transferring the Maracanã stadium to the private sector, the government of the State of Rio de Janeiro still hasn't received payment from the consortium that won the bid for the arena's concession.

According to the agreement reached in 2013, the group made up of construction company Odebrecht (95%) and AEG (5%), a company specialized in managing sporting arenas, was required to pay a granting fee of R$ 5,5 million (US$ 1,7 million) in January of this year.

This was to be the first of 33 annual payments. The bill is past due, but the consortium that manages the stadium has refused to pay the agreed amount.

The government is negotiating with the group regarding the payment of the granting fee and wants to maintain the consignment agreement of 35 years for the stadium. Odebrecht, however, wants out of the deal.

The two parties still haven't agreed on how the administration of the stadium will be handled in November, when the Olympic Games Organizing Committee will hand back the management of the arena to the government.

The consortium alleges that the operation of the stadium was made unfeasible when the government prohibited the demolition of the Julio de Lamare Aquatic Park and the athletic tracks that make up part of the sporting complex, after the bid was finalized.

The group was planning to construct a commercial center and a parking facility to make the undertaking more profitable.

Aware that the consortium is leaving, the government is already planning a new bidding process for the stadium. The Flamengo and Fluminense clubs have both signaled their interest.

Translated by LLOYD HARDER

Read the article in the original language