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Qatar Cuts Number of World Cup Stadiums From 12 to 8 Due to Delays, Costs

Apr 20, 2014 1:00 pm

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Qatar is behind on several infrastructure developments including the country’s airport and and metro system suggesting Qatar could find itself in a similar situation like that which Brazil is in today.

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Fadi Al-Assaad  / Reuters

Qatar 2022 FIFA World Cup bid team display zero carbon, solar powered cooling technology for open-air stadiums to FIFA inspectors during the FIFA Inspection Visit for the Qatar 2022 World Cup Bid at a showcase stadium in Doha September 14, 2010. Fadi Al-Assaad / Reuters


Qatar reduced the number of stadiums it plans to build for the 2022 soccer World Cup by a third amid rising costs and delays.

The country, which won the right to host the world’s most- watched sporting event in 2010, plans to build eight stadiums for the event, Ghanim Al Kuwari, the organizing committee’s senior manager for projects, said at a conference in Doha today. The country originally announced plans for 12 stadiums, including nine new playing fields and three refurbishments. Al Kuwari didn’t give a reason for the cut.

Qatar, which holds the world’s third-largest natural-gas reserves, plans to spend more than $200 billion on new infrastructure before hosting the sporting event, including $34 billion on a rail and metro system, $7 billion on a port and $17 billion on an airport. The stadiums will cost $4 billion, according to the ministry of business and trade.

The country is facing delays and escalating costs related to the event. Work started later than planned on the metro system and the opening of the new airport is six years behind schedule.

Qatar’s surplus in its 2014-2015 budget shrank by 1.4 percent, compared with the previous fiscal year, amid a 17 percent gain in spending on “key projects,” the country’s official Qatar News Agency said last month. The inflation rate will rise to 3.8 percent this year, Qatar National Bank, the country’s largest lender, said on April 14. It was 2.6 percent in March, according to government data.

FIFA Negotiations

The Middle Eastern country was negotiating with FIFA, world soccer’s governing body, to cut the number of venues to eight or nine from the 12 originally planned, Bank of America Merrill Lynch said in an April 2013 note to investors following meetings with the Qatar 2022 organizing committee. Costs will probably exceed the bank’s initial estimate of $95 billion, Alberto Ades, head of emerging-market fixed-income strategy at the bank, said in the note.

In addition to the stadiums, 92 training sites will be constructed, Al Kuwari said. Qatar is preparing to host the World Cup in the month of June and will air condition all venues, Al Kuwari said. Temperatures can rise above 50 degrees Celsius (122 Fahrenheit) in Qatar during the summer.

FIFA has said it may move the tournament to the cooler months of the year. FIFA President Sep Blatter said Nov. 9 that the months of November and December would work best.

Construction has started on the Wakra stadium, while work on the Al Rayan stadium is set to start later this year, or early in 2015, Al Kuwari said. Qatar plans to award $1.7 billion of road projects in coming months and will tender 20 others in the next two years, Jalal Yousef Salhi, director of infrastructure affairs at the country’s Public Works Authority, said today.

With assistance from Amir Shabana in Dubai.

To contact the reporters on this story: Zainab Fattah in Dubai at zfattah@bloomberg.net; Robert Tuttle in Doha at rtuttle@bloomberg.net To contact the editors responsible for this story: Andrew Blackman at ablackman@bloomberg.net James Amott, Tony Barrett.

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