Controversy Over $218 Million Road Project

After PowerChina in Costa Rica won the contract to expand a section of highway in Guanacaste, one of the participating consortia appealed the results, arguing that the requirements had been modified in the tender.

Thursday, January 31, 2019

The road work awarded to PowerChina in 2018 consists of a total of 50 kilometers, distributed in two tenders, one for the San Gerardo-Limonal section and the other for the Barranca-San Gerardo section. For the first four companies submitted tenders and the contract was awarded on October 25, while for the second there were seven proposals and the contract was awarded on December 10.

You may be interested in "Central America: $270 Million in Road Projects"

Among the companies participating in the tenders are Power Construction Corporation of China (PowerChina) and the Costa Rican consortium Meco-HSolís, with global bids of $218.3 million and $208.9 million.

After both contracts were awarded to PowerChina, appeals were filed against the result. reports that "... The award to PowerChina for San Gerardo-Barranca was annulled on January 24, 2019 because the General Comptroller of the Republic declared with claims raised in appeals. The resolution of objections for San Gerardo-Limonal is pending."

Also see "Construction: $320 Million in New Projects"

The article adds that "... Aside from San Gerardo-Limonal and Barranca-San Gerardo, in January 2018 the 20 km section Cañas-Limonal was awarded, which is already under construction. The three advertisements asked suppliers to prove an average turnover in the last five years of at least $45 million in construction work or road improvements. Cañas-Limonal was awarded under these conditions. However, in April and June last year (one month before the opening of the tender), the executing unit changed this requirement for the other two sections: San Gerardo-Limonal and Barranca-San Gerardo."

See General Comptroller's Office resolution.

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