Shock withdrawal of power supplier

Aggreko ‘pulls out’ of Rio Olympics over delays

Aggreko London gamesTemporary power supplier Aggreko has indicated that it will withdraw its tender to provide generators to the Olympic Games in Rio next year.

The Glasgow-based company is believed to have become tired of constant negotiations and changes to the terms of the contract.

If confirmed, this would be a significant move by a company whose revenue is driven largely by major events. Aggreko has been involved in nine Olympics and six World Cups.

The London Games were worth £40 million to the company which provided 550 generator sets, 1,500 kilometres of cable and 5,500 distribution panels across 39 venues.

The winning company would be expected to supply power for international broadcasters, the opening and closing ceremonies, as well as back-up electricity for the venues.

But the Reuters news agency said the organising committee for the Rio Games are concerned about cost over runs at a time when the country is in recession.

Officials say construction of venues and infrastructure remains on track, but recently admitted Brazil’s recession is making delivery of the Games more difficult.

The Games are due to open on 5 August.

Aggreko issued a statement which said: “Aggreko notes media reports that it has withdrawn from the bidding process for the 2016 Rio de Janeiro Olympic and Paralympic Games. The tender process is ongoing and as such Aggreko is unable to comment further at this stage.”

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