2014 FIFA World Cup

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The 2014 FIFA World Cup will be the 20th FIFA World Cup, an international association football tournament that is scheduled to take place in June and July 2014 in Brazil. This will be the second time the country has hosted the competition, the first being the 1950 FIFA World Cup. Brazil will become the fifth country to have hosted the FIFA World Cup twice, after Mexico, Italy, France and Germany. It will be the first World Cup to be held in South America since the 1978 FIFA World Cup in Argentina, the first time two consecutive World Cups are staged outside Europe and the first time two consecutive World Cups are staged in the Southern Hemisphere (the 2010 FIFA World Cup was held in South Africa).

Infrastructure
The CBF estimates that the cost of construction and remodeling of stadiums[18] alone will be approximately over R$ 1.9 billion (US$ 1.1 billion, £ 550 million).[19] In addition to the stadium upgrades and renovations, there will be millions more spent on basic infrastructure needs to get the country ready. When informed of the decision to host the tournament, CBF President Ricardo Teixeira said: "We are a civilized nation, a nation that is going through an excellent phase, and we have got everything prepared to receive adequately the honor to organize an excellent World Cup." Teixeira was on hand at FIFA's headquarters in Zürich when the announcement was made. "Over the next few years we will have a consistent influx of investments. The 2014 World Cup will enable Brazil to have a modern infrastructure," Teixeira said. "In social terms will be very beneficial. Our objective is to make Brazil become more visible in global arenas," he added. "The World Cup goes far beyond a mere sporting event. It's going to be an interesting tool to promote social transformation." In September 2008, Brazil's Ministry of Transport announced a high-speed rail project for the World Cup connecting Campinas, São Paulo and Rio de Janeiro. This would cost R$11 billion (approx. US$ 6.25 billion, £ 4.1 billion).[20] The technology will most likely be provided by companies from France, Japan, South Korea or Germany which will form consortia with Brazilian engineering firms. However, on 2 July 2010, it was announced that the line is now not expected to open before late-2016.[21] On 31 August 2009 the state airport management agency Infraero unveiled a R$ 5.3 billion (approx. US$ 3 billion, £ 2 billion) investment plan[22] to upgrade airports of ten of the venue cities, increasing their capacity and comfort for the hundreds of thousands of tourists expected for the Cup. Natal and Salvador are excluded because their upgrade works have been recently completed. A significant amount (55.3%) of the money will be spent overhauling the airports of São Paulo and Rio de Janeiro. The investment figure covers works to be carried out up to 2014.

The announcement by Infraero came in reply to criticism made by the Brazilian General Aviation Association, a grouping of private aircraft owners, that Brazil's airports currently could not cope with the World Cup inflow. The vice-president of the association, Adalberto Febeliano, told reporters that more than 500,000 football fans were expected, with each one taking between six and fourteen flights during the tournament to get to the games in various cities.[23] The majority of Brazil's airports were built before the end of World War II, and several were at saturation point in terms of passengers, according to the association. It added that it should be possible to renovate the facilities "within three or four years" if the political will exists. Infraero said in a statement: "In the race against time, Infraero is making sure that the sixty-seven airports in its network are in perfect condition and can welcome in comfort and security passengers in Brazil and from abroad." In May 2010, the Government of Brazil changed the bidding legislation to allow more flexibility to Infraero.[24]

Brazilian states and cities of the 2014 FIFA World Cup.
The Brazilian federal government has earmarked R$ 3 billion (US$ 1.8 billion, £ 1.1 billion) for investment in works relating to the 2014 World Cup, and intends to release a package of works, entitled the FIFA World Cup PAC (Portuguese acronym for Growth Acceleration Programme). According to the Brazilian minister of cities, Márcio Fortes, the bulk of funds should go to works pertaining to the tournament itself, but the total figure will only be defined after a meeting with representatives of the municipalities that will host the matches. "This is only an initial figure. We have not set a figure yet. These R$3 billion will allow us to take the first step. The total value of projects is not known yet. We are going to hold talks with mayors to learn which projects are priorities," said the minister. The funds will be supplied by Pró-Transporte, a financing programme funded by the Severance Pay Indemnity Fund (FGTS) whose regulation was passed last year by the fund's Board of Curators. According to Fortes, several city councils have already contacted the ministry and showed interest in partnership for carrying out infrastructure work turned exclusively to the Cup that will be held in Brazil. "For some time now, the city councils that will host the matches have been contacting us. The city councils have had meetings with FIFA and several projects were outlined. Our approach consists of dealing only with projects exclusively turned to the Cup. Our goal right now is not to solve transportrelated issues in the city. We are going to help solve the issues pertaining to the events," he stated. According to the minister, another factor to be analysed by the Ministry of Cities is usefulness and sustainability of the investment after the competition is over. "We are not going to deal with huge projects. The cheapest and most efficient means of transport will be used. Of course, each case will be analysed separately," he explained.

CPTM train in Greater São Paulo
Fortes stated that the PAC of the Cup is going to include partnerships with city councils and state governments, as well as some partnerships with the private sector. "The keyword is partnership. The federal government will not undertake anything by itself. It will be similar to the infrastructure PAC, in which we already have partnerships with city councils and state governments, as well as public-private partnerships. We are going to review the type of investment proposed, analyse their size, and the need for private sector participation, which may take place in different ways. The private sector may build and then lease the assets, or perhaps operate them. All of that will be discussed," he stated. The minister also informed that preparations for the World Cup already include the creation of a line of financing for renewing the bus fleet across the country. The line will be made available by the Brazilian Federal Savings Bank with total funds of R$1 billion (US$ 600 million, £ 375 million).[25]

Engenhão Stadium, will host the training centre for teams in the city of Rio.
The Maracanã Stadium, in the city of Rio de Janeiro, has been chosen for the final match. The Maracanã was inaugurated in at the 1950 World Cup. For the 2014 World Cup, among other adaptations, a new cover will be built. The project also includes construction of a building for parking, above the lines of Supervia and subways, with 3,500 parking spaces. The estimated investment is R$ 460 million. According to the study of Sinaenco, there is a need to improve the visibility for spectators in the first few rows behind the cabins in the Maracanã, redesign the facilities for people with disabilities, and provide general health reform. The project may also provide for the restoration of the Quinta da Boa Vista and the Museum of de São Cristóvão, in addition to redevelopment and revitalization of neighborhoods including Tijuca. The Engenhão stadium, completed for the 2007 Pan American Games, has a capacity of 45,000 people and will serve as a training ground for the World Cup. An investment of R$ 5 billion is required to meet the requirements that Rio de Janeiro faces in the final tournament and other games, covering three areas: logistics (roads, railways, ports, waterways and airports), energy (generation and transmission of electric power, petroleum, natural gas and renewables) and social and urban (light, sanitation, housing, subways and water resources). In relation to the Rio de Janeiro Metro, the Ministry of Transport has held a public hearing regarding the extension of its lines. The line for the new project is 13.5 km (8.4 mi) long, and should cross the South Zone of the city, carrying around 200,000 passengers per day between six metro stations.[26]

Anti-fraud plan

Launch of Transparency Portal.
On 11 June 2010, the federal government launched a program to protect the tenders for work in preparation for the 2014 World Cup and the 2016 Olympic Games against the possibility of fraud. The plan, known as Jogando Limpo (Playing It Clean), includes a series of guidelines and nuggets of advice so that the government institutions, and also the tax authorities and common citizens themselves, may identify and denounce attempts at fraud against the tenders. The program, which was launched by the Ministries for Justice and for Sport, also plans the establishment of a group dedicating to monitoring tenders, to protect them against the threat of fraud and also to avoid delays in construction work. This initiative, also boosted by the General Financial Controller of the Union (Controladoria Geral da União), also plans a campaign to make the people aware of the need to pay attention to possible fraud and to always denounce the cases. The program emphasizes measures against cartels and possible agreements between competing companies to set prices above market levels, in an attempt to raise the value of the contracts with the state. "Nothing can be worse than someone taking advantage of these two great opportunities to commit crimes. This is a world phenomenon," said the Minister for Justice, Luiz Paulo Barreto, during the ceremony to launch the program. "The businesspeople could be entering with an agreement on prices, in order to compete in these tenders. This is something that needs to be tackled. We need to promote fair play also in our tenders," Barreto added. "Fair play is something we would expect from a country intending to host events of this size," he added. Barreto also said that, between 2007 and 2010, there were a total of 265 search and seizure warrants issued in Brazil to tackle the crime of cartel formation. In the same period over 100 people were preventively arrested for the same crime, and currently an additional 251 people are being investigated.[32]

Tax breaks

Estádio Nacional upgraded in Brasília
Brazil's federal government announced on 17 May 2010 that it shall be granting tax breaks for the construction and refurbishment of the stadiums for the 2014 World Cup. In a note, the Ministry for the Treasury said that it shall be "granting tax exemption to the stadiums of the World Cup, which shall not need to pay Industrialized Products Tax (Imposto sobre Produtos Industrializados - IPI), Importation Tax (Imposto de Importação - II) or social contributions (PIS/COFINS)." In addition, the 12 cities that shall be hosting the World Cup matches shall be able to grant exemption from State Value Added Tax (Imposto sobre Circulação de Mercadorias e Serviços - ICMS) on all operations involving merchandise and other goods for the construction or the refurbishment of the stadiums. "Conditional on the cumulative concession of the benefits involving Importation Tax, IPI and PIS/COFINS, the exemption of ICMS on imports shall only be applicable if the goods do not have a similar product produced nationally," the note informed, adding that this decision shall be made feasible through a Law or Provisional Measure. In September 2009, the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social - BNDES) opened a credit line of R$ 4.8 billion (approx. US$ 2.7 billion, £ 1.75 billion) for the World Cup stadiums. Each host city shall be able to finance up to R$ 400 million (approx. US$ 225 million, £ 145 million) or 75% of the project, with bank funds.[33]

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