Costa Rica: Deadline to Sign $395 million Chinese Loan Extended

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.

Wednesday, June 25, 2014

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.

The Minister of Public Works and Transportation, Carlos Segnini said in an article on that "... now the representatives of China Harbour Engineering Company (CHEC) will have a meeting in Beijing in order to define the new terms ...Then they will communicate them to the Costa Rican government. "

"...The Executive asked for more time to sign the agreement through which the company will provide $395 million to expand to four lanes a stretch of 105 km of road between Pococí and Limon, on the main road leading to the Caribbean, because of doubts about the plan, which remains pending in Congress. "

See also: "Costa Rica Renegotiates Chinese loan for $395 million"

More on this topic

Costa Rica: Chinese Dragon Spits Fire

April 2015

Although the Minister of Public Works had demonstrated his confidence that there would not be increased costs in the road project to be built by the Chinese company CHEC, an announcement has now been made that there will be increases and they will be "substantial".

An article in reports that "...Confidence in "Chinese honor" and a personal guarantee that the Asians would not raise the cost of extending Route 32 (to Limon), only lasted two months for Transport Minister Carlos Segnini. "

Costa Rica: $485 million for Controversial Road Works

February 2015

Without having read the contract with the construction company and ignoring final costs, the Legislature has approved the loan with the Chinese government to finance the extension of the road to Limón.

The loan with the government of China for $485 million is tied to a commercial contract with the Chinese state-run construction company CHEC, highly questioned not only technically but at the legal level, since it is one of the companies "... included in the list of companies ineligible for dealing with the World Bank until 2017 because of fraudulent practices in the Philippines ".

Costa Rica Renegotiates Chinese Loan for $395 million

June 2014

The loan signed by the previous government is tied to a contract for the construction of 105 kilometers of road which was pre awarded to China's CHEC.

An article in reports that "... The government of Luis Guillermo Solís reported today that China will make a formal request to renegotiate the loan to expand Route 32, which was signed during the administration of Laura Chinchilla."

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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