Costa Rica: $465 million Road Project Accelerated

The Chinese construction company CHEC will finance the cost of the environmental impact study in order to unfreeze the project to expand 100 kilometers from San José to Limón.

Wednesday, June 15, 2016

<span dir="ltr">The goal of the construction company China Harbour Engineering Company (CHEC) is to avoid further delays to the start of the project to expand and renovate 107 kilometers of road in the province of Limón on Route 32. Lack of resources at the Ministry of Public Works and Transport prevented any progress being made in this process, which in turn is a prerequisite for the Chinese bank Eximbank to hand over the $395 million with which the work will be financed.

See: "Costa Rica Approves $465 million Highway Contract."

Nacion.com reported that "...CHEC decided last January to hire, for  $160,000,  the Costa Rican company CDG Environmental Advisors, which will manage the technical reports. The company was hired despite the fact that the MOPT has not given the order to proceed to the Chinese firm."

"... In addition to the environmental guarantee, the MOPT requires $70 million to pay for an advance of the work and $14 million for the design of the road. 'We need the money from Eximbank so that we can pay CHEC, but how do we get those funds if they do not have the environmental impact study?' Said Carlos Villalta, Minister of Public Works and Transport. "



More on this topic

Controversy Over Enlargement of Road to Limón

March 2018

While the concessionaire in charge of the work announces that it plans to subcontract a Costa Rican construction company for part of the project, the Ministry of Public Works states that it has not been notified.

The remaining stretch of the 107 kilometers comprising the project in its entirety, between the junction of Rio Frio and Matina, will be built by the project concessionaire, China Harbor Engineering Company Ltd. 

Road to Limon to Cost $40 million More

October 2017

The final designs presented by the Chinese company include the construction of nine bridges and 27 kilometers of marginal roads, raising the total cost of the work from $465 million to $505 million.

Spokespeople for China Harbor Engineering Company (CHEC), in charge of the project, explained that in the review of the 32 bridges on the 107 km stretch of road that will be rebuilt there are 9 that are in poor condition and must be demolished. In addition to the nine bridges, the designs presented by CHEC include "... 27 kilometers of marginal roads; in the original contract the construction of 26 kilometers was established."

Costa Rica: Road Construction to Limón Delayed

July 2017

The Chinese company in charge of the project will start construction work in the second half of 2018, and not in September of this year, as originally planned.

The delay is due to the fact that the Costa Rican State has not yet completed all of the necessary procedures to begin the project. There are up to 1,000 expropriations pending settlement, an archaeological study is still pending and there is still no plan to relocate public services such as water, electricity and internet cables.

Alternative to $465 million Road Contract with China

March 2014

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.

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.

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