Bureaucracy Delays Implementation of Loans for Public Works

In Costa Rica bureaucratic process and the slow pace of legislative approval for loans for infrastructure are key factors in the terrible record for execution of projects.

Friday, November 15, 2013

According to officials from the Ministry of Finance the slow implementation of projects financed by international organizations is due to "bureaucracy related to external credit authorizations and the time the project spends in the Legislature, pending approval," noted an article in Nación.com.

The issue was discussed during the fourth conference on fiscal consolidation focusing on public borrowing and investment. According to Federico Villalobos, economist infrastructure specialist, another drawback is the lack of preparation done on projects, in particular because of the lack of personnel to carry them out.

As explained Fernando Quevedo, representative of the Inter-American Development Bank (IDB) to Costa Rica, a year and a half is too long time a to implement projects because it ends up affecting the resources of the projects to be developed. He explained that at the time of requesting funding for new works the entity questions the application because there are still transactions pending disbursement.

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Health, education, security, and water and sanitation are the areas in which the Guatemalan government plans to develop projects in 2017.

$66 Million to Repair Bridges

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The Inter-American Development Bank (IDB) is to finance the works as part of its $300 million program to improve Costa Rica's infrastructure network.

The $66 million in funds will be used to repair the eight bridges and widen nine more according to IDB spokesperson, Fernando Quevedo.

Costa Rica: $200 million for Municipal Roads

July 2011

The Costa Rican Legislative Assembly has approved a $200 million loan for road infrastructure.

The Inter-American Development Bank (IDB) loan, is part of a loan package of $850 million, which will be disbursed in installments.

"These resources, which are exclusively for matters relating to road infrastructure, will be used for a second tranche of cantonal road development in a number of towns and roads that have already been established, the projects will be monitored by a unit of the Ministry of Public Works and Transportation", published Prensalibre.cr.

Infrastructure Loan Halted in Costa Rica

June 2011

The opposition in Congress will not approve a of $60 million BID loan until project plans have been submitted.

The resources that the government intends to use to strengthen the country's cantonal roads will have to wait, because the opposition has refused to approve the funding unless the list of projects to be financed by this loan are disclosed.

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