Press Trust of India
Rio de Janeiro, Dec 15: Longtime Olympic power provider Aggreko (AGGK.L) has pulled out of a tender to supply generators for the games here next year, the spokesman for the Olympics stated here Monday. It is a major blow to organisers rushing to secure an energy source for the world’s largest sporting event.
The temporary power contract is a vital part of Olympic preparations, guaranteeing a stable and secure energy supply for international broadcasters, the opening and closing ceremonies, as well as back-up electricity for the venues.
The most experienced bidder pulling out on such a crucial contract is a worrying sign for Olympic organisers who are under huge pressure to cut spending as Brazil languishes in its worst recession in 25 years.
Glasgow-based Aggreko, which has been involved in nine Olympics and six World Cup Athletics meet, declined to comment because the result of the tender has not yet been announced. For London 2012, Aggreko’s power deal was worth nearly $60 million, although the Rio 2016 contract is expected to be less as it is smaller in scope.
Rio 2016 spokesman Mario Andrada said that he was comfortable with the companies still competing for the tender, the winner of which will be passed to the board for approval Tuesday.
Two other sources with knowledge of the tender process said the companies left in the running were a mix of Brazilian and international firms, but said it was unlikely any of them had the in-country capacity and Olympic experience to fully meet the needs of the contract. It is likely that whoever wins would have to lease generators from Aggreko, they said.
In 2012, Aggreko’s pre-tax profits surged 11 per cent, helped by its London Olympic contract. Aggreko provided London 2012 with 550 generator sets, 1,500 kilometers of cable and 5,500 distribution panels across 39 venues.
