Actually, that is pretty common in most "non-western"/modern places, or where infrastructure just hasn't been improved. But given the price of the buildup for the Games, you would think they would have made the improvements to the sewage system. Considering how non-major Sochi was before they got the bid, I'm not surprised that their existing system couldn't handle it.
Someone with the IOC (Mark Adams) just claimed that all the hotel rooms have been finished, they're now pushing the Russians to get things working. Gee, you might usually want to have stuff like that taken care of before the international press and visitors arrive. I think Brazil is farther along, but they also have the World Cup to prep them for the building spree, so not as much to overcome, and the two cities are already gigantic with some existing infrastructure.