Costa Rica: $485 million for Controversial Road Works

Without having read the contract with the construction company and ignoring final costs, the Legislature has approved the loan with the Chinese government to finance the extension of the road to Limón.

Thursday, February 26, 2015

The loan with the government of China for $485 million is tied to a commercial contract with the Chinese state-run construction company CHEC, highly questioned not only technically but at the legal level, since it is one of the companies "... included in the list of companies ineligible for dealing with the World Bank until 2017 because of fraudulent practices in the Philippines ".

Despite criticisms made by the Association of Engineers and Architects regarding the weakness of the draft submitted by CHEC and knowing that the actual cost of the work could be much higher, as stated by the minister of Public Works, Carlos Segnini, the MPs approved the project, which it is expected to be executed within 42 months.

More on this topic

Costa Rica: Chinese Dragon Spits Fire

April 2015

Although the Minister of Public Works had demonstrated his confidence that there would not be increased costs in the road project to be built by the Chinese company CHEC, an announcement has now been made that there will be increases and they will be "substantial".

An article in Nacion.com reports that "...Confidence in "Chinese honor" and a personal guarantee that the Asians would not raise the cost of extending Route 32 (to Limon), only lasted two months for Transport Minister Carlos Segnini. "

Costa Rica: Deadline to Sign $395 million Chinese Loan Extended

June 2014

China Harbour Engineering Company has accepted a request by the Solis administration to extend the signing a loan to be used for the extension of the road going from San José to the Caribbean.

It is the fifth time there has been a postponement of the signing of the loan agreement for the extension of 105 kilometers of Route 32, which connects the capital with the Port of Limón, in the Caribbean, but the first in the administration of President Luis Guillermo Solis.

Alternative to $465 million Road Contract with China

March 2014

Five Costa Rican construction companies have submitted a joint proposal to take over the expansion to four lanes of 107 miles of kilometers to the Caribbean.

The companies, Codocsa, Desarrollos Mega, Pedregal, Productos de Concreto and Traesa submitted a joint proposal for the expansion to four lanes of the Rio Frio to Limón stretch on Route 32.

Costa Rica: Resistance From Entrepreneurs to Highway Project

February 2014

Complaints have been made that the bill awarding construction of the Caribbean route to a Chinese company was approved without preliminary drawings, calculation of materials and study of costs.

Grupo Consenso believes that it is "unacceptable" that the Committee on Financial Affairs agreed to accept as reasonable the cost presented by China Harbour Engineering Company (CHEC), in the amount of $465 million.

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