Rio Olympics Secures Energy Contracts

(ATR) Around the Rings has learned the tender for the Olympic temporary energy contract has been filled.

Rio 2016 confirmed the decision, which was made by its board of directors Dec.16 at a meeting to finalize the budget for the Games.

Nearly 60 contracts were awarded by the board for a range of services, as well as energy. ATR is told the figures approved confirm budget cuts that had been under consideration since October.

With less than nine months remaining until the Games , Rio is in a crunch to finalize all operations for the Games -- and matching those expenses with the revenue available.

Rio organizers have pledged to stick to a budget that is perfectly balanced,$7.6 billion reais, approximately $1.9 billion.

The government of Brazil says it has no funds available to cover overspending, given the bleak economic climate the country is facing.

Back of house costs are being targeted for the final wave of cuts.

Ahead of the decision on the energy supplier, a Rio 2016 official told ATR that three companies had been contracted to cover half of the energy needs for the Games and that other contracts would be awarded would be for the rest.

Rio 2016 declined to name who was awarded the tender, given that the contracts need to be fully negotiated.

"We will start working on the contracts and once done we will announce the name of the companies," a Rio 2016 spokesperson said to ATR. "We are fully confident that they will deliver."

Even though parts of the energy tenders had been awarded, Rio has finalized the process much later than London for the 2012 Games. Energy suppliers for London were known well over a year from the Games, while Rio is completing the process witheight months to go.

Concerns over the tender had been raised after a report from Reuters said that international energy supplier Aggreko had pulled out of consideration. Aggreko had been seen as the most qualified bidder for the tender after supplying temporary energy for nine Olympic Games.ATRwas told earlier this week that Aggreko was unlikely to be selected for the tender. The organizing committee said it did not consider the company pulling out to have any impact on the process.

Aggreko did not return requests for comment about the decision to remove itself from consideration. Delays reaching an agreement could have been a factor for the Glasgow-based firm. And the companies which do win the Rio energy tenders may still need tolease generators from Aggreko to meet capacity.

Written by Aaron Bauer in Rio de Janeiro

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