Is Brazil Behind in Preparing for the World Cup and Olympics?

Q: The Brazilian government is planning to sell controlling stakes in three airports and form public-private partnerships in an effort to expedite preparations for the 2014 World Cup and 2016 Olympics. FIFA secretary general Jérôme Valcke also admitted to 'many problems' in projects for the tournament, citing the 'airports, accommodation and transportation' sectors. Is Brazil significantly behind in its preparations for the sporting events? Which areas, sectors and projects need the most work? What steps should Brazil take to ensure its infrastructure obligations are met? Are conditions right for the private sector to increase its involvement significantly and successfully ahead of the games?

A: Craig Kelly, member of the Advisor board and vice president
of the Cohen Group in Washington: "In recent weeks journalists have raised questions about Brazil's infrastructure challenges and the pace of preparations for the 2014 World Cup and the 2016 Olympics. Three points: First, it is rare that angst does not seize a country that hosts the World Cup or Olympics. Second, Brazil does not have to go from zero to 60 in two seconds. The country already organized the Pan- American Games in 2007, and many of those facilities stand ready for 2016. Brazil will host the Military Games this summer, the Earth Summit in 2012, the Confederations Cup in 2013 and the World  Cup in 2014. By 2016, Brazil will be a seasoned host of complex international events (and, possibly, the world's fifth largest economy). Third, much of the team that led Brazil's successful Olympic bid has stayed on to guide the 2016 preparations. Carlos Nuzman, head of Brazil's Olympic Committee, is respected around the world. And President Rousseff strengthened the team by appointing former Central Bank President Henrique Meirelles head of the Brazilian Olympic Authority. Brazil shoulders a big responsibility as the first South American country to host the Olympics,
and it has embarked on ambitious airport, hotel and transportation projects. On a recent trip to São Paulo, I overheard two Paulistas in the long immigration line complain, 'We are not ready for the World Cup.' The next day the government announced streamlined bidding procedures for World Cup infrastructure projects, and a few weeks later, approved plans to tender concessions for private sector companies to manage three of Brazil's most important airports. Brazil's confidence is matched by a sense of urgency and the enormity of the task."

A: Thomas Rideg, managing director of Global Intelligence Alliance: "Brazilians always end up pulling their strings together and getting things done. However, Brazil is behind in its preparations for the sporting events, with the World Cup being the priority. There are two macro challenges: First, structured and effective organization is difficult in Brazil, especially when it involves the public sector. Second, there are 12 cities that have been assigned to host the World Cup and they are spread throughout the country. Furthermore, each of these cities is in a completely different stage of socio-economic development. Adding these factors together, each of the 12 municipalities has been delegated to make their own plans to prepare for the World Cup. The organizing committees have come up with five key factors for a successful World Cup: stadiums, airports, public transport, people's ability to service the tourists and hotels. The areas that demand more public sector involvement (stadiums, airports and public transport) are the ones that are lagging behind across all the cities. Two other public areas of concern not listed above are safety and health. The construction and/or modernization of stadiums and airports are indeed behind schedule, but many are in progress and I believe that serious accomplishments will be made. Public transport is a whole different situation and is definitely the one that will remain unresolved during the World Cup, because a complete resolution is too complex. Cities like São Paulo and Rio de Janeiro need more extensive subway systems, trains connecting the city to the airports and organized traffic engineering in general. The government also needs to decrease the level of bureaucracy that is currently in place in order to approve bids for new projects, especially in the transport system. Though Brazil has major deficiencies across the public sector, its private sector is all around highly efficient and competitive. Increasing the private sector's participation is vital to speed up the sport event preparations. This will happen and it will work. I am confident that the World Cup (and the Olympics) will be a success. Needless to say, with less bureaucracy and more step-by-step planning, everything could be leagues better."

A: Otávio Nese, president of the Project Management Institute's Brazil Chapter: "Information that has come to light in recent months demonstrates a unique characteristic of public sector project management. The participation and influence of all stakeholders, be they external or internal, are fundamental for the success of a project, and knowing how to balance and meet those interests and expectations is a constant challenge for managers. But when we talk about the public arena, there exists a political factor that stands out above the others, greatly impacting the development of any government project. It is in this situation that we find ourselves today in all areas of infrastructure (ports, airports, railroads, highways, urban mobility, energy and security, among others), the result of our economic growth. Speaking specifically about the World Cup and Olympics, the situation is critical from the point of view of project management. Political issues, lack of structural planning, excessive bureaucracy, transparency in the decision making processes, feasibility studies and project classification reflect the backwardness in all areas of infrastructure to meet current and future demand in the coming years. The decision to transfer the expansion of the country's three major airports to the private sector must be viewed cautiously, since the government agency -Infraero- will have a 49 percent stake, in other words, with great power to influence their management and operation. On the other hand, this model proves to be a good alternative because it can be structured to adopt management practices with a focus on operating efficiency and not just political results. In this context, the opportunities are great for the private sector, particularly with regard to how these projects can be managed, and they would certainly prioritize not only the return on their investments but also meet the specified requirements, especially the deadlines. This certainly is a requirement that cannot be changed. "

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