Rio 2016 budget revised up

The cost of staging this year's Olympic Games in Rio de Janeiro has been revised up by 400 million reais (about 100 million US dollars), Brazil's Olympic Public Authority (APO) said on Friday.

In a statement, the APO predicted an overall Games budget of 39.1 billion reais (9.73 billion US dollars), up from the 38.7bn reais projected in the last cost review in August.

The estimate is 1.4bn reais higher than the APO's forecast last January.

Friday's announcement comes as a blow to the government and Games organizers, who are trying to prevent cost overruns amid Brazil's worst recession in decades.

Late last year the Rio 2016 organizing committee said it would slash spending by 500 million US dollars to maintain its 1.9 billion-dollar operating budget.

Last week Rio 2016 spokesman Mario Andrada announced a reduction in spectator capacity at some venues and said 20,000 fewer volunteers would be used.

The APO, responsible for monitoring Games spending, said the upward revision took into account costs related to temporary stands and the hiring of equipment for electricity supply to venues.

Around 60% of the budget is to be bankrolled by the private sector, the APO said.

"We have brought forward the conclusion of important work, like the canoe slalom course and the mountain bike track at the Deodoro Complex," APO president Marcelo Pedroso said.

Pedroso said the figures were updated using information supplied by the local, state and federal governments.

It is understood the budget does not include costs related to Olympic Village furniture, cleanup work at Gloria Marina, the relocation of residents at a favela near Olympic Park and equipment needed to clean Guanabara Bay.

When Rio presented its bid to host the Games in 2009, officials estimated the cost of the event at 28.8 billion reais.

The Rio 2016 Games, to be staged from August 5 to 21, will be the first Olympics to be held in South America. Endit