The stagnation of the refinery project could be the reason for China's loss of interest in Costa Rica, after having stopped the disbursement of a $24 million "freebie", the purchase of $1 billion worth of Costa Rican bonds, the development of an industrial pole, and the extension of a road.
EDITORIAL
The diplomatic shift from Costa Rica which privileged mainland China over Taiwan - in contrast to all of its Central American neighbors- held the promise of an injection of Chinese investment and development in the country, in public infrastructure, energy, and manufacturing centers.
An executive decree has forbidden the development of hydroelectric projects of more than 500 MW in the bed of the Pacuare and Savegre rivers for the next 25 years.
From a statement issued by the Presidential Office of Costa Rica:
Government decree safeguards environment of Savegre and Pacuare rivers for 25 years
- 500 kilowatt or more hydroelectric projects prohibited
President Solis has rejected the possibility of harnessing geothermal energy in national parks describing their exploitation as "unnecessary".
While discussions continue at the national roundtable on energy which will supposedly inform the government and the public of its findings in the month of March, President Solis has already ruled out the use of geothermal energy in protected areas.
Those who are elected to perform executive positions such as the Presidency of the Republic must be EXECUTIVES, not hide behind their shields by calling for assemblies when it comes to the responsibility for decision-making.
EDITORIAL
In Costa Rica energy, specifically electricity, has been for many years, a subject continuously on the agenda of business and policy makers because of the negative impact of its high cost on competitiveness.
While renegotiations are carried out on a loan to build an oil refinery, President Solis has issued a decree extending the moratorium on oil exploration and production until 2021.
While the private sector mourns the loss of competitiveness caused by the high cost of electricity and the lack of proposals to solve the power supply problem affecting the country, the government has decided to extend for six years a ban on all types of oil industry in the country, citing lack of information on the effects of the activity on the environment.
The accreted political left in Costa Rica is proposing that the oil bill that is being run up now, be paid for in the future by other generations.
EDITORIAL
Proposed by a legislative faction of the Frente Amplio party, the possible accession of Costa Rica to the oil alliance created by Venezuela, will not lower fuel prices automatically, but because of how the agreement works, it will mean financing oil purchases at rates that are just a little better than the current cost, simply to keep on increasing government debt, not to mention the political implications that could come from such a close relationship with the government of Venezuela.
The state run electricity company intends to archive projects in the energy reform sector, while the commission presided over by president Solis is going to take 18 months, just to discuss the country's energy matrix.
After the Solis government having announced the creation of a commission that will take a year and a half just to diagnose the problems of the energy sector in the country, the Instituto Costarricense de Electricidad has made a request for three projects on law reforms being studied in the Legislature, to be archived while the commission seeks these solutions.
The president-elect has announced that if it is necessary he will change the restrictive approach on electricity generation by private companies promoted by the Citizens Action Party.
So far the party of the newly elected president has postulated restricting power generation by private companies to a maximum of 15% of the total generated nationwide. Luis Guillermo Solís himself had declared he was "pro-ICE" in relation to the Instituto Costarricense de Electricidad, the state company that dominates a quasi monopoly level of production of electricity.