The General Comptroller of Costa Rica partially approved the $20.7 million trust fund for the San José-San Ramón road corridor.
In a document published on the General Comptroller website on October 10th of this year, it was reported that the approval is given to the trust fund for this road work that consists of the modernization of a 60 kilometer stretch of road between San Jose and San Ramon.
In Costa Rica, six out of eight banks are opposed to the possibility of lending the $35 million required to finance technical studies for a new highway between San José and San Ramón.
Nacion.com reports that "... Since November 29, the Bank of Costa Rica, administrator of the trust for the highway, knocked on the doors of Banco Nacional, BAC San José, Davivienda, Banco Internacional de Costa Rica (BICSA), the Banco Interamericano de Desarrollo (BID) and Instituto Nacional de Seguros (INS) to raise the money. However, those institutions rejected the request for different reasons."
With a loan from the IDB, plans are underway to carry out road renovation works on the cantonal road network, especially in the areas affected by storm Nate in 2017.
For the 61 projects in the first stage ofPRVC II, the MOPT estimatesholding approximately 12 tenders, each of which will include between four and five projects. As part of a second stage, around 64 projects will be worked on, which correspond to about 41 million dollars and are currently in the analysis phase.
The state insurer could be willing to invest up to $500 million in road construction projects that already have their pre-design and studies ready.
The offer by Instituto Nacional de Seguros (INS) applies only for projects designated as "mature", that is to say, those that already have all the approved permits and pre-designs.The problem with this requirement, according to the executive director of the Federated College of Engineers and Architects (CFIA), is that planning problems faced by Conavi and the Ministry of Public Works make it impossible to meet this requirement."..."Unfortunately, it's not the way the Ministry of Public Works and Transportation (MOPT) and Conavi have been working," Vargas said."
The CABEI will lend the $70 million needed to complete construction of the 1.3 kilometer section of the Circumnavigation Road.
The $70 million estimated as the cost of construction of the last stretch of 1.3 kilometers which is part of the 5.6 kilometers of the new road, will be financed by the CABEI.
Nacion.com reports that "...The state only has $147 million to finance the construction of 4.3 kilometers between La Uruca and the intersection of Route 32. The conclusion of the ring road is a task which has been pending for more than 40 years."
Through a trust with a state insurer $35 million will be used to finance the construction of a major road link in the east of the Greater Metropolitan Area.
The stretch of road between Hacienda Vieja, Curridabat, and the Garantías Sociales roundabout in Zapote, will be developed using a trust, explained Carlos Villanta, Minister of Public Works and Transportation, adding that"...
The Ministry of Public Works does not know how to finance the 2.8 kilometers access road that has to build as part of the agreement with the concessionaire APM Terminals, in charge of the construction of the mega port in Moin.
Ministry officials admit they do not have any funds defined or know which company will build the four-lane road that will connect Route 32 to the entrance of the container terminal to be built by APM Terminals in Moin.
The process of selecting trustees for the construction and operation of a major road work is running out of participants.
In February, when the law enabled the use of a trust to finance and build the road from San Ramon to San Jose, seven banks expressed interest in participating in the process, but now, following Banco Nacional´s decision to withdraw a few months ago, two other private banks have also decided to step aside.
With a loan of $21 million the state insurance company will design and carry out technical studies for a project to widen the road from San Jose to San Ramon.
At the request of the Ministry of Public Works and Transport, the National Insurance Institute will finance the pre-design work, design and the necessary technical studies to determine the cost and the conditions of renovating the route.
The amendments made to the law on the trust to finance the expansion of the road from San Ramon to San Jose, limit sthe interest of potential trustees.
The Ministry of Public Works and Transport argues that the changes made to the original text raise questions for potential banks interested in setting up the trust, particularly because it does not include, among other things, the information necessary to determine the financial feasibility of the project. "...The practical effect of this gap in the law is that there is not the desired and necessary security required in the case that there is a need to go to the market to raise funds to finance the work. "
In Costa Rica four private banks and two state banks have expressed interest in becoming trustees of the $436 million trust fund for expanding the road from San Ramon to San Jose.
Public banks interested in becoming trustees of the project are the Bank of Costa Rica and Bancrédito, and the private banks are Scotiabank, Lafise, BCT and Improsa. Representatives from the Ministry of Public Works and Transportation (MOPT) announced that the next phase will establish the conditions and timetable for the tender to select the trustee.
The Legislature has approved a special budget for road renovation works, road widening, construction of overpasses and breakwater at berths.
From a statement issued by the Legislative Assembly of Costa Rica:
With 44 votes in favor lawmakers approved on its second reading record 19464, modification No. 9289, Act RB extraordinary Republic Act for fiscal year 2015 and the first special budget of the Republic for the fiscal year 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 "...
The signing of a trust by President Solis marks the beginning of the preparation of the tenders for the design and construction of the 69 kilometer road between San Jose and San Ramon.
For the creation of the trust between the banking entities and the National Roads Council they took into account state banks, pension operators and the National Insurance Institute.
The Legislature has approved the creation of a Bank Trust for $440 million to finance construction of the route from San Jose to San Ramon.
From a statement issued by the Legislative Assembly of Costa Rica:
With 45 members in favor, unanimous approval was given this afternoon (February 5th) in a second debate to processing file 18887 on the Act for Development of Public Works on Highway, San Jose, San Ramon and its ring roads using a trust.