The Brazilian government announced Thursday that federal government officials, governors and mayors of the 12 host cities for the 2014 World Cup have signed a cooperation agreement accounting for 11.3 billion US dollars to guide World Cup preparations, Xinhua reported.
The federal government, states and municipalities will finance 11.3 billion dollars from various sources, to be invested in restructuring within the hotel sector, in urban mobility (public transportation and access roads) and in stadiums, as well as in works in areas near airports and tourist port terminals.
The document, signed on Jan. 13 and dubbed the "Responsibility Matrix", outlines the role of each federative entity in World Cup preparations.
"Rather than simply assuming a commitment, we are signing a treaty that will lead us to not only host the World Cup, but to host the best World Cup ever," said President Luiz Inacio Lula da Silva at the ceremony.
Of the total 11.3 billion dollars, the federal government will invest 7.4 billion dollars while states and municipalities will contribute 3.9 billion dollars.
States and municipalities are responsible for funding and implementing the works for sports facilities, while the federal government will be in charge of airports (passenger terminals, runways and courtyards) and ports (tourist terminals), as well as monitoring and reporting on expenditures and the progress of the works, based on information received from the states and municipalities.
The "Responsibility Matrix" is a method of participatory planning, involving states, municipalities and the federal government. It defines the functions of each level of government, the allocation of resources, the projects to be developed and the schedule for completing works.
For the construction of stadiums and remodeling of nearby areas, Brazil's National Bank for Economic and Social Development (BNDES) will finance 2.1 billion dollars (up to 75 percent of the project value, limited to 230 million dollars), with a 12-year term for repayment, a three-year grace period and interest rates of 1.9 percent per year.
The works for urban mobility, involving airports, bus terminals, stadiums and hotel zones, will receive 4.3 billion dollars, which will be financed with resources from the Employee's Severance Guarantee Fund (FGTS). The program provides for the construction of exclusive lanes for buses, light rail vehicles and BRT (Bus Rapid Transit).
States and municipalities will have a 20-year amortization period (30 years for transport on rails), with a four-year grace period and interest rates of 6 percent per year. In return, they will disburse at least the equivalent of 5 percent of the financed amount.
For renovation and expansion of the country's hotel sector, in host cities and major tourist destinations, a credit line of 573 million dollars through BNDES was announced, applicable to all Brazilian municipalities and enterprises of all sizes.
The Bank has doubled the lead-time for the repayment of loans, specifically to meet the demand for the 2014 World Cup. Buildings that comply with the sustainability concepts set out by Inmetro ( National Institute of Metrology, Standardization and Industrial Quality) will have 18 years for repayment. In the case of remodeling, the period is 12 years.
In addition to the World Cup host cities, municipalities in the North, Northeast and Center-West regions will receive 573 million dollars from constitutional funds to finance tourism activities.
Federal, state and local governments will also sign new terms of commitment to cover sectors such as security, technology, ports and airports.
The host cities for the 2014 World Cup will be Brasilia, Sao Paulo, Rio de Janeiro, Belo Horizonte, Cuiaba, Curitiba, Porto Alegre, Salvador, Fortaleza, Manaus, Natal and Recife.