Judge suspends payments to sports concessionaire in Brazil
A judge of the region of Natal, in the state of Rio Grande do Norte (Brazil), has provided the basis to suspend availability payments for the Arena das Dunas Stadium PPP project.
The judge also commented on a potential fine for the concessionaire due the fact that it did not comply with contract requirements.
In September 2011 the Brazilian Development Bank (BNDES) approved a loan in the amount of BRL396.5 million (US$121 million) for the construction of the Arena das Dunas Stadium in Natal, one of the venues for the 2014 World Cup in Brazil. The funds amounted to 75% of the cost of the project, according to the ceiling established by the BNDES ProCopa Arenas program, under which the operation was approved.
Special Purpose Company (SPC), Arena das Dunas Concessão e Eventos S/A (ADCE), controlled by the OAS group, is responsible for constructing and operating equipment for a period of 20 years.
In mid 2015 the state announced the creation of a commission to carry out audit of the accounts of the Arena das Dunas Concession and Eventos S / A.
Additionally, the project had not feasibility studies completed before the tender process.
The concession comprises the replacement of the João Cláudio de Vasconcelos Machado Stadium (Machadão) and Humberto Nesi Gymnasium (Machadinho), both of which were demolished and the design building, financing, operation and maintenance of the new Arena das Dunas Stadium.
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