Governments Admit a New Loan for Curitiba Arena

02/06/2014 - 08h57

The Federal and Paraná governments admitted to the possibility of taking out a new loan for the Arena da Baixada in Curitiba, the stadium most behind schedule for the World Cup.

The arena, belonging to Atlético-PR, is privately owned.

The stadium has already received US$54.5 million from BNDES (National Bank for Economic and Social Development) and another US$40 million from the Paraná government.

The city of Curitiba must also make contributions of up to US$50 million in securities of potential construction, which can be used as collateral or reformation expenses. This week, a meeting will be held between BNDES and representatives of the state government to discuss the issue.

Arena da Baixada, Curitiba

The amount of the new contribution has yet to be defined.

Atletico-PR did not use all of its available stadium financing from BNDES. Each World Cup stadium could borrow up to US$166 million. The Arena only took US$55 million.

The delay in the project's progress provoked an "ultimatum" from FIFA.

"The stadium isn't just long overdue, but shies from any good delivery schedule for Fifa," said the secretary general of the organization, Jérôme Valcke, on a visit to Curitiba last month.

The stadium, which is 90% complete, would not be ready in time for the World Cup at that pace. Atletico-PR has complained of a lack of money and delayed clearance of loans.

FIFA ordered the creation of a committee to monitor the reformation and called for measures to speed up the work, like hiring more workers. Because of these changes, the cost of reforming the Arena was re-estimated at US$137 million, or almost 80% more than originally planned.

The last budget, from two weeks ago it was an optimistic US$132 million.

Despite the rising costs and the threat from FIFA, Sports Minister Aldo Rebelo expressed confidence during a visit to the city yesterday.

"Expectations are the best possible," he said. "There was an upgrade to the field, in the number of workers, equipment, and use of raw materials. This gives us confidence that things are developing."

FIFA will announce whether or not Curitiba remains as a Cup host around February 18th, when there will be a seminar with all teams participating in the Cup in Florianopolis.

Translated by STEVE HUGHES

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