Entrepreneurs are used to having insomnia brought on by worrying about the taxes they have to pay, which go towards paying for the permanently unfinished adventures started by civil servants who get to sleep without any problem, because they never have to be responsible for what they do.
Like Puerto La Union in El Salvador, the alleged refinery to be built in a joint venture between China and Costa Rica is fast becoming another white elephant in Central America, as it generate huge expenses but produces nothing. At least the Puerto de la Union is already built, and maybe, just maybe, someday will be used for something. Instead, the Chinese-Costa Rican refinery is still just an idea, which so far has only served to feed the pockets of officials at Soresco, the company which is supposed to build and manage it.
In most cases, whoever uses this phrase is thinking only in their own gain, and not in the benefit of the other, just as China is doing while promising aid to Costa Rica.
Interestingly, as soon as the issue of the failed oil refinery project to be built in partnership with a Chinese company is made public, the ambassador of that country appears in Costa Rica, carrying under his arm a portfolio of cooperation projects from its generous government to be carried out with the Central American nation (see article Crhoy.com "Solis said that China has more cooperation projects for Costa Rica").
The consultant Worley Parsons points out the modifications to the processing units and production capacity, that would make the project profitable.
The modifications suggested by the consultant, changes in the processing units and increasing daily production to 65,000 barrels would generate increased profitability and improved product quality. These changes constitute additional investment of $100 million.
The state-owned China Development Bank Corporation will be in charge of structuring the financing of $1.2 billion for the new oil refinery in Costa Rica.
Confirmation of the commitment by the Chinese state was made by Deputy Prime Minister of the Republic of China, Zhang Gaoli, who met on Sunday with the Costa Rican President Laura Chinchilla in San Jose, to sign an agreement.
Costa Rica is awaiting the release of a report on the expected profitability of the proposed new Moin refinery, which needs to be 16% or more, in order to gain the support of China's state oil company.
Australians have begun the process of developing the basic engineering for RECOPE and the CNPC’s new refinery, designed to process 60,000 barrels per day.
A statement from RECOPE reads :
The Australian firm Warley Parsons last week assumed the basic engineering for the project to build a new refinery with capacity to process 60,000 barrels a day, to be carried out in conjunction with the company SORESCO, formed by the Costa Rican Oil Refinery (RECOPE) and the Chinese government company CNPC International.
After several months of analysis, the Costa Rican Petroleum Refinery (RECOPE) has authorized the construction of a new plant to refine crude oil in Limón, which will triple the processing power of the state enterprise.
The project to expand the oil refinery in Moín, valued at $1 billion, could begin in 18 months.
The announcement was made by José Desanti, president of the state-owned “Refinadora Costarricense de Petróleo”, who explained they are finishing engineering studies with the Chinese National Petroleum Corporation.
Civil Engineer construction, general contractor, gas pipeline and oil pipeline construction, petrochemical installation, fiber optic installation, highway and road construction.
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Constructora Celaque is a leader when it comes to construction of civil projects and mining in Honduras with more than 15 years of experience.
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