Brazil presses to complete infrastructure projects for World CupReprints
Workers rushed last week to complete huge infrastructure projects to be ready for the June 12 start of the World Cup in Brazil.
The late rush to wrap up work at stadiums, airports, rail lines, roads and phone networks reportedly continued at a frenzied pace.
For example, the Itaquerao stadium in São Paolo, which will be used for several matches during the monthlong tournament, including the opening game between Brazil and Croatia, reportedly still was unfinished.
One insurance broker, who asked not to be named, said a lack of readiness in any of the 12 stadiums across Brazil to be used during the tournament may cause insurance difficulties for event organizers.
A lack of readiness of venues or infrastructure is excluded from event cancellation coverage, said Sonja Kaufmann, senior contingency underwriter at Swiss Re Corporate Solutions, a unit of Swiss Re Ltd., in Zurich.
So interested parties such as the event organizers have purchased other insurance that may include surety coverage, for example, to protect them if a match is postponed, said a London-based underwriter who asked not to be named.
According to another underwriter, since construction delays would not be covered by contingency insurance, event organizers would protect themselves against such a risk using other insurance or by self-insuring or having well-thought-out plans to move an event elsewhere.
The Fédération Internationale de Football Association earlier this year announced a “comprehensive recovery plan which includes solving the financial challenges involved” to ensure that the Arena da Baixada in the city of Curabita will be ready to host matches during the tournament.
The venue had been in danger of being removed as a match host because work on its stadium was behind schedule.
FIFA said the plan included financial guarantees from the city and state of Curabita as well as local team Clube Atletico Paranaense.