Rio plays to win at 2016 Olympics

By Bill Wilson Business reporter, BBC News

Rio de Janeiro enjoyed a long party after clinching the Olympics

Swimsuit-clad revellers on Copacabana Beach waved green, yellow and blue flags and partied through the night when Rio de Janeiro pulled off its marvellous feat of winning the 2016 Olympic Games.

In Copenhagen, where the decision was announced, President Luiz Inacio Lula da Silva burst into tears of joy, as did football legend Pele and most of the Brazilian delegation in the Danish capital.

Among them was Eduardo Paes, the mayor of the "Marvellous City", perhaps best-known around the world for its annual carnival which attracts two million people every year.

But now, more than three weeks on, the confetti has been cleared away, eyes dried, and the hard work begins of delivering the games, with all the logistical and infrastructure work that involves.

'Big changes'

Equally important for Rio is using one of the world's biggest sporting events to economically boost the city and nation.

"It can mean big changes for the city," Mr Paes, a smartly-dressed 39-year-old enthused to the BBC.

RIO ECONOMIC FACTS 42% of Brazilian GDP in a 350km radius around the city 141km of railways and 42km of subway lines One seaport, three commercial airports 47% of Brazilian market cap based in Rio Major firms based there include Petrobas, Vale, Rede Globo, Oi Source: City of Rio

"When someone wins an Olympic games they get asked - 'what are you going to do to change the city?'

"We look to the Barcelona games as an example. There was one Barcelona before the Olympic games, and another one after the games."

Those Barcelona games in 1992 saw the coastal city transformed, including its dock areas, in a process that Rio hopes to emulate.

'Football asset'

Like the Catalan capital, Rio is determined to parcel together much-needed city projects with its infrastructure work for the games, as part of an overall games budget of $15bn (£9bn).

"The city of Rio's masterplan is the games' masterplan, and the games' masterplan is the city's masterplan," insists Mr Paes, surrounded by a retinue of city officials.

"We are talking about a lot of projects that we were already going to carry out, such as port renewal, which is already receiving investment.

"Other projects already in the pipeline include the upgrading of transport infrastructure, with an improved metro system."

Holding the football World Cup is seen as an advantage for 2016

And the mayor - visiting London, Barcelona and Athens to collect advice on hosting an Olympics - believes holding the football World Cup in 2014 will be an advantage.

"It is an asset hosting the World Cup two years before the Olympics," he insists.

"It means a lot of structures are going to be in place before 2016 - for example Rio will host the World Cup media centre, world governing body Fifa, and many important games."

'Public money'

He says the fact the city will already be developing its infrastructure by 2014 gave it an advantage in its battle with Madrid, Chicago and Tokyo to host the 2016 games.

"It showed the International Olympic Committee that we would be ready on time," says the ebullient mayor, who took over the city reins in January this year.

"The city is used to hosting great events," says Mr Paes

"The other difference between our bid and other cities is that we have access to guaranteed public money, we are not relying just on private money."

The public money has come as the Brazilian economy has grown, and the country largely avoided being dragged into the recent global financial crisis.

"Our banking system did fairly well during the recent international crisis compared to some other countries," says Mr Paes.

"Our economy has been traditionally unstable, but the economic basis of the country is good now," adds the former Rio secretary for tourism.

One of things that reportedly helped sway the games in Rio's favour was a World Bank projection which forecast Brazil as the world's number five economy by 2016.

City of contrasts

Mr Paes said that after the games he envisaged the country being more wealthy, with more inward investment, more tourism, and more employment opportunities.

As well as the tourism industry and infrastructure - including hotels and conference centres - the construction, media, entertainment, finance, fashion and design, and IT industries are also hoping to see a major benefit.

Rio will welcome thousands of tourists during the 2016 games

But the mayor admits everything is not perfect in the fast-growing metropolis, which is home to both chic apartments and the deprived favellas, or shanty towns.

"There are a lot of contrasts in Rio, there are poor areas and with problems in their infrastructure.

"The games offers an opportunity to narrow the gap between rich and poor by 2016."

He adds: "We never hid from problems during the bid process. We told people our problems and how we are facing them.

"We still have got a lot of work to do, and a long way to go. We are sure the policies we are bringing to Rio will help everyone."

'Business friendly'

And it is hoped that the World Cup and Olympics will kick-start a number of different economic sectors.

"Rio hosts headquarters of leading Brazilian companies in oil and gas, mining, media and telecommunications," says Mr Paes.

"We have a modern creative industry cluster, and one of the most qualified work forces in the country.

"Ahead of the Olympics we are working to make Rio more business friendly, and also providing incentives and support to all those who intend to do business in Rio."

As well as hosting the two biggest sporting events in the world, Rio hosted the Pan American games in 2007, and in 2011 will host the Military World Games.

Safety issues

Despite attracting these major international events, the city hit the global headlines for the wrong reasons recently, after violent clashes between police and gang members which left at least 12 dead.

"We are not worried about delivering a safe games," insists Mr Paes.

"We hosted the Pan American games safely, and we host the carnival - with two million people - every year.

Mr Paes says Olympic venues will not stand idle after 2016

"We still have a lot of problems, but things will be much more peaceful and secure by 2016."

Another potential problem that faces all hosts is the burden of maintenance costs for idle venues in the post-Olympics period.

But the mayor says: "Our new venues will allow us to expand different sports - apart from football - in our country, and allow us to hold sport programmes for 700,000 city children."

He says the city is already working on the future sustainability of venues and stadiums, and how they could be used by young people.

"Rio is used to holding great events," says Mr Paes.

"Things are going right in our country - we are sure we can deliver a fantastic games."

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