London 2012 has provided a great example for Rio 2016 to follow, Brazilian construction leader Paulo Safady Sim茫o tells Emily Wright - and that鈥檚 why Rio 2016 wants to return the favour, providing plenty of Olympics work for UK firms
Paulo Safady Sim茫o must have mixed feelings as he visits London in the build-up to the Olympics. As chairman of the Brazilian Construction Industry Chamber, he is one of the key players in the delivery of the next Games, to be held in Rio de Janeiro. And the way things are shaping up, the Brazilian city will have a particularly tough act to follow. The London Games have so far been acclaimed as one of the most organised Olympic deliveries in history - on time, on budget and with an exemplary sustainability strategy.
But on the other hand, Sim茫o also realises that this can be used to Rio鈥檚 advantage - by luring the firms and professionals that built London 2012 to repeat the trick for 2016. Here he explains just how UK firms can get in on the action - which includes 拢182bn of public sector work and 拢34bn of stadium projects over the next three years. Then on pages 32-35 we take an in-depth look at where Rio has got to in preparing for the Games, and analyse whether the 2014 World Cup - also in Brazil and under fire from Fifa for being behind schedule - will ultimately help or hinder Rio鈥檚 Olympic progress.
Three-year window
鈥淲e are now preparing a very big show for a very, very big event,鈥 Sim茫o says over coffee at Ecobuild in London鈥檚 ExCel Centre, which he is attending as part of a Brazilian delegation to learn more about the UK approach to sustainable construction.
鈥淭here is a lot of pressure and this is something the UK knows a lot about 鈥 We have already started importing technicians and consultants who worked on the Olympic park in London. They have learned a lot and we now want to learn from them.鈥
The significance of Sim茫o鈥檚 appeal to UK firms should not be underestimated. The country is a notoriously tough market to crack thanks to an already highly skilled construction labour force - particularly as for contractors. But now, due to the nature of the work in the pipeline - sports venues and infrastructure, as well as large-scale masterplanning - UK expertise is suddenly in demand.
The sporting events have created a 鈥渢wo to three year window鈥 for UK firms to get their foot in the door, according to a report by British Expertise following a trade mission to Brazil in February. As a result of the World Cup and the Olympics, the Brazilian government aims to complete 12,265 infrastructure projects by the end of 2016, which will require an investment of $800bn in roads, rail schemes, ports and stadiums.
We like the idea of partnering as much as possible. We want to develop more relationships with UK firms
But one thing that is even more important than infrastructure credentials, is sustainability expertise. 鈥淒eveloping sustainable projects is so, so important for us at the moment,鈥 says Sim茫o. 鈥淚t is a huge task for somewhere as big as Brazil. We have around 170,000 construction companies that we are asking to change the way they build, develop and look to the future in terms of sustainable design and construction.鈥
The answer, he says, is to create partnerships between local and UK firms to draw on the UK鈥檚 Olympics and wider sustainability expertise. This is rather than trying to use UK companies as consultants on an ad-hoc basis.
Sim茫o explains: 鈥淚 have a private project that I am working on and we partnered with Broadway Malyan. We commissioned them to do the masterplan so that the sustainability aspect was already taken into consideration at this early stage. We鈥檙e very happy with the way that worked out and we鈥檙e suggesting other Brazilian firms do the same. 鈥淭his is particularly important in the lead-up to the Olympics. The UK projects and venues are fantastic and so sustainable; and we need to be doing the same things in Brazil.鈥
Sim茫o adds that the UK has other elements working in its favour when it comes to entering the Brazilian market: 鈥淲e are very close to the UK anyway. From government all the way down to businessmen we have good, strong relationships. We like the idea of partnering as much as possible. We want to develop more relationships with UK firms.鈥
鈥楳eet, explore, learn鈥
Still, there鈥檚 no denying there are challenges for UK firms to overcome. 鈥淲e do have some issues in Brazil,鈥 concedes Sim茫o. 鈥淟abour laws are very complicated and we have very convoluted tax and payment processes.鈥
This is why he thinks it is better from a UK perspective to partner with local firms.
鈥淭hen you get the local knowledge with the imported expertise.鈥
He adds that firms thinking of going to Brazil to capitalise on the Olympics should not expect too much too soon: 鈥淵ou have to take time building up relationships, getting to know people and businesses - particularly the developers and main contractors. You have to come here first - meet, explore, learn. That鈥檚 why we are in London and the UK so much. It works both ways.鈥
But should UK firms eyeing Brazilian Olympic projects be worried by the lack of progress on the 2014 World Cup? Fifa鈥檚 general secretary J茅r么me Valcke said last month that Brazil needed a 鈥渒ick up the backside鈥 to speed up procedures and construction works. And days later, Fifa president Sepp Blatter added that he wanted to see 鈥渁ctions rather than words鈥 from the Brazilians as infrastructure, stadiums and hotels remain behind schedule.
On this point Sim茫o is unfazed. He freely admits that the 2014 delivery might not be 鈥渨hat we want to see鈥 due to poor planning, but is convinced that 2016 will be a different story. 鈥淲e have learnt and we are really investing time, money and planning into 2016. I am very happy with how things are going. This won鈥檛 be another World Cup.鈥
Whatever the outcome, the message to UK firms is simple: these two major sporting events are the key to winning work in a country with one of the fastest growing economies in the world. It鈥檚 time to take the London 2012 expertise global.
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