Aggreko pulls out of Olympic bidding over contract arrangements

PORTABLE power provider Aggreko has announced it has withdrawn from the bidding process for the 2016 Rio de Janeiro Olympic and Paralympic Games.

The Cannock-based company said contracting entities in Brazil had taken the decision to award the power provision in parts and Aggreko said it had not been awarded the first tranche of contracts.  

It said given the preparation required for an event of this scale, it had opted to withdraw from bidding for the remaining tranche.
 
Chris Weston, chief executive, Aggreko, said: “We have given considerable thought to our decision to withdraw from the bidding process and I would like to thank our team for all their hard work.  We wish Brazil, the Rio 2016 Committee and the International Olympic Committee the very best for a successful games.”
 
The decision is likely to impact the company’s business as it has previously exploited such events to good effect.

In 2012 the company received a major boost from its involvement the London Olympics, with third quarter trading showing revenues showing a 22% increase, largely due to a £59m contract to supply portable power solutions to the Games.

Then last year, it also benefited from servicing the Glasgow Commonwealth Games and the football World Cup in Brazil, with combined revenue of £19m.