The government of Costa Rica does not have a supervisory body for the execution of the concession agreement on the route San José - Caldera, involving more than $530 million.
From a report by the Comptroller General:
"... As of 4 September 2012, there was no regulatory agency for the concession of the San José – Caldera route, therefore nine years after the contract was endorsed, there is still a lack of appropriate controls for the San José - Caldera project, with the only controlling body for the project being a supervisor, which in addition to supervision, advises the project manager, however there is no body to audit the actions of both the Administration and the concessionaire in connection with the execution of the contract. "
Of the $80 million funding for the ‘Ciudad-Puerto‘ (Port City) project at Limon, Costa Rica, only 3.3% has been spent in the past three years.
The effect of the $80 million investment spent on public infrastructure such as sewers, street furniture, pedestrian crossings and flood controls, should be extraordinary in Limon, the port city of Costa Rica, which is characterized by its poverty and lack of opportunities for its inhabitants.
Investments in port infrastructure, new free zones, condominium housing developments, and a new road promises more development in the area.
One of the projects planned to start in 2013 is the new Moin Container Terminal, by APM Terminals, whose construction will require three years and a workforce of 1,000 workers.
Also for 2013 is the expected start of construction of a "condominium building that was initially going to be 200 units, but due to the strong demand has been extended it to 292 units, explained Eduard Morgan, managing director of Calypso Developments, responsible for this development. "
Costa Rican professional and business organizations determine priority road projects
The National Laboratory of Materials and Structural Models (LANAMME), the Association of Engineers and Architects (CFIA), the Costa Rican Union of Chambers and Associations of Private Enterprise (UCCAEP), the Costa Rican Chamber of Construction, the Chamber of Architecture and Engineering Advisors and the Association of highways and roads of Costa Rica, have formed a working group called Consensus for the Rescue of the National road Network, which seeks to reverse the sharp deterioration of Costa Rican road infrastructure, caused by decades of poor maintenance and lack of new investments.
The budget for 2013 submitted by the Government to the Legislature indicates that expenditure on public works will be cut by 13%.
According to the budget for 2013, presented to the Legislature, capital expenditures by the central government will amount to $675 million, 8% less than what was authorized in the 2012 budget. Taking into account the 5% inflation forecast for next year, the actual drop is 13%.
The consultant Worley Parsons points out the modifications to the processing units and production capacity, that would make the project profitable.
The modifications suggested by the consultant, changes in the processing units and increasing daily production to 65,000 barrels would generate increased profitability and improved product quality. These changes constitute additional investment of $100 million.
In Costa Rica there is no good track record in this matter, but with reviewed rules and better preliminary studies, they still may be the solution to the country's infrastructure problems.
The latest episode was the crater which suddenly opened up on the country’s main highway. Almost every day there is a news story about the poor state of infrastructure in Costa Rica.
In November 2010 announcements were made for works worth $760 million to be financed through securitizations which never materialized.
An article in Elfinancierocr.com reports that "In October 2010 a change in the regulation of public offering of securities came into force regulating investment instruments originating from securitization and trusts for public works developments."
The Costa Rican Chamber of Construction says urgent investment in port infrastructure is needed and that it supports the new Container Terminal at Moin.
A statement from the Costa Rican Chamber of Construction (CCC) reads:
The Costa Rican Chamber of Construction (CCC) would like to draw attention to improvements that the country needs to make in port infrastructure, because the lack of investment that has been made is taking a toll on all Costa Ricans.
In Costa Rica, $40 million was spent building a 160km road without surveying, design of ditches, drains or crossings over rivers.
The border dispute between Costa Rica and Nicaragua over the mouth of the San Juan river was the cause of an emergency decree by the Costa Rican government, which ordered the construction of a road alongside the right side of the river for a stretch of 160 kilometers.
Little planning and coordination have been cited as the main causes of inefficiency in the development of transport infrastructure projects.
Because of the long processes for contracting and construction, the transport sector is the most deficient in infrastructure development, compared to energy, health and education, according to a study by the Controller General of the Republic.
The contest will be published in the second half of this year and the funds will come from a loan granted by CABEI.
Funding for the works comes from a $340 million loan that the Government of Costa Rica signed this week with the Central American Bank for Economic Integration (BCIE).
The Northern Ring Road will be a 4-lane highway that will begin on Route 32 and continue west until reaching the intersection with Circunvalacion, opposite Burger King in La Uruca. The complete length of this section includes the largest viaduct built in the country, at 3.8 kilometers long, between the intersection of Route Guapiles and a sector close to Leon XIII, in Tibás.
The works comprise the renovation of road surfaces, and construction of bridges and storm drains on major routes in the area.
From the press release by the Ministry of Public Works and Transport:
The Ministry of Public Works and Transportation (MOPT) and the National Roads Authority (CONAVI) has intensified repair works on road surfaces and bridge building on major roads in the Southern Zone, where it has invested a total of ¢13.448 million ($ 27 million) from the Road Fund.
The Costa Rican Ministry of Public Works has started renovation works on the highway ‘ruta Interamericana’ to Rincón de Osa.
A press release from the Ministry of Public Works and Transport reads:
Monday November 21, 2011. The National Roads Council of the MOPT will begin work this morning on the renovation of the ruta Interamericana - Rincón de Osa highway, in the south of the country.