Alternative to $465 million Road Contract with China

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.

Friday, March 14, 2014

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. They did not mention the cost or method of financing, but claim they are charging less than the amount proposed by China Harbour Engineering Company.

"... At the moment there is a bill in Congress which, if approved, would allow Costa Rica to acquire a loan of $465 million from the Chinese government and thereby finance the total construction on Route 32. The entity responsible for executing the work, in this case, would be the state-owned China Harbour Engineering Company (CHEC).

Gustavo Camacho, representing the business group, told Nacion.com: "The goal now is to start negotiations with the government and we would be ready to start with the designs as soon as we get an agreement. This would be a 100% national project, with Costa Rican labor. "



More on this topic

Costa Rica Approves $465 million Highway Contract

May 2016

China Harbour Engineering Company will have 42 months to expand the road linking the capital San José with the port area in Limón.

From a statement issued by the Comptroller General of the Republic:

By attached letter, the CGR endorsed the Contract Agreement and Addenda 1, 2, 3 and 4 for the "Project Design, Renovation and Expansion of National Road No.

Costa Rica: Private Group Wants to Build Road

August 2014

A group of Costa Rican construction companies insists with the proposal made to the previous administration to expand the 107 kilometer of the road to Limon at a cost lower than the Chinese option.

The five builders who suggested their plan to the former officials of the Ministry of Transport and Public Works are once again knocking on the doors of the institution, this time proposing that the current chief, Carlos Segnini, consider the initiative as an alternative to the loan from the government of China, of $465 million.

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.

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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