World Cup Stadium Construction: "Today, contracts between national companies and a foreigner seem like war treaties"

In Brazil they are protesting over soccer stadiums being built for the 2014 World Cup.

One issue surging to the fore involves anger over stadium projects in various cities ahead of the 2014 World Cup ...Some projects have been hindered by cost overruns and delays, the unfinished structures standing as testament to an injection of resources into sports arenas at a time when schools and public transit systems need upgrades.

Protesters want trains and subsidized buses over the high cost of the World Cup. Here is the BBC :

"Police fired tear gas minutes before the kick-off of a Confederations Cup tie between Italy and Mexico. Protesters were complaining about the high cost of the tournament and the 2014 World Cup, in a country still lacking in public services. A similar protest took place before the opening match on Saturday. Further protests are planned across Brazil."

The Wall Street Journal notes that the cost of refurbishing the flagship Maracana stadium in Rio De Jeneiro has nearly doubled:

The cost of renovating Maracanã, which can seat up to 78,838 spectators, nearly doubled from original estimates of 600 million reais after more workers were hired to complete construction. Despite the additional labor, the stadium still missed the December 2012 deadline set by FIFA, soccer's governing body. Swiss investment bank Credit Suisse estimates that stadium work across Brazil is costing about 30% more than originally forecast. 

... and there are safety concerns:

The inevitable rush to complete construction has raised concerns that quality could be compromised. In April, the Engenhão stadium in Rio de Janeiro, which was hurriedly built for the 2007 Pan American Games, was shut after engineers discovered structural problems with the roof. ... Experts said there may not be time to carry out the multiple independent audits that large-scale construction projects like stadiums typically require to ensure safety. 

"The stadiums will be done right on time, but without doing a serious technical audit," said Anand Hemnani, chief investment officer at consulting firm CG/LA Infrastructure. "If an audit uncovers any faults, they won't have any time to do anything about it before the Confederations Cup." A Brazilian and an avid soccer fan, Hemnani said that the prospect of sitting in a stadium that hadn't been properly tested before being opened to the public caused him to give up his Confederations Cup tickets. "I don't feel comfortable being a guinea pig," Hemnani said.

In the meantime, construction of hoped for new infrastructure is not forthcoming:

A plethora of infrastructure projects were planned to help speed visiting soccer fans—and Brazilians after the event—around cities and across a country that lacks basic transportation. Little of that is now expected to leave the drawing board. 

"The government will deliver all the stadiums," said Paulo Resende, a professor and specialist in infrastructure at Fundação Dom Cabral, a business school in Rio de Janeiro. "The problem is that all the legacy projects promised by the government, such as those in transportation, won't be delivered." 

War treaties?

"The government has replaced ambitious subway and light-rail projects with bus corridors that amount to little more than rearranging traffic flows, Resende said. Part of the problem, he said, is the lack of foreign input into the planning and production of the events. Brazilian businesses are wary of foreign competition and seek out the government for protection, he said. 

"Today, contracts between national companies and a foreigner seem like war treaties," Resende said. Brazilian firms need to realize that international partnerships are beneficial and help mitigate risks, he added."

Update your passports, grab your cow bells, and vuvuzelas .... World Cup 2014 is just around the corner.  In the meantime, here's hoping you, too, get to negotiate some war treaties.