Overpricing of Road Works in Costa Rica

An opposition deputy claims that the financial offer made by China to widen the road to the Caribbean is overpriced by $165 million.

Thursday, February 20, 2014

Manrique Oviedo, from the Citizen Action Party complained that the financial proposal for the extension of Route 32 is overpriced by $165 million relative to what it would actually takes to carry out the enlargement. The legislature requested that the Government renegotiate the loan granted by China for expanding the highway between San José and Limón.

According to "a study by the Mexican firm Cal y Mayor for the Inter- American Development Bank in 2012 , the value of the project is $320 million, while the bid submitted by China Harbour Engineering Company is for $485 million."

"The renegotiation is urgent because the Ministry of Public Works and Transport has no documents to support this over pricing".

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The extension of the road to Limon and the construction of a refinery in Moin, both to be funded by the Chinese government, will be renegotiated by the Solis administration.

Two major projects in infrastructure which began under the Chinchilla administration are now being analyzed by the government of Solis, due to the criticism against the conditions imposed by the Chinese government for the provision of the $395 million for the expansion of the road from San Jose to Limon.

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Costa Rica Renegotiates Chinese Loan for $395 million

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An article in Nacion.com reports that "... The government of Luis Guillermo Solís reported today that China will make a formal request to renegotiate the loan to expand Route 32, which was signed during the administration of Laura Chinchilla."

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The Costa Rican government has signed a $395 million loan conditional on the award of a contract to a construction company that has been blacklisted by the World Bank.

China Harbour Engineering Company (CHEC) will expand the stretch of 107 kilometers on the road to Limón, despite questions having been asked in four countries regarding fraud and bribery.

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