Due to a delay and an exaggerated increase in the cost of the project, consideration is being given to termination of the contract for the construction of the new road to San Carlos and reallocation of the pending works through several separate contracts.
The contract to build the 29.7-kilometer stretch of road between Sifón, San Ramón, and La Abundancia, in San Carlos, was awarded more than 9 years ago to the company Sánchez Carvajal, at an initial cost of $61 million.Since then, the cost of the project has increased 250% to $213 million.
With the changes to the contract approved by the Comptroller General, Banco de Costa Rica has become the project supervisor of the road expansion project.
"...The main change is that Banco de Costa Rica will be in charge of the Project Management Unit (UAP) and therefore will have to provide the entire administrative team needed to manage the next phases of the route.In addition, it will assume work such as the selection of contractors for different works."
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 expropriationspending settlement, an archaeological study is still pending and there is still no plan to relocate public services such as water, electricity and internet cables.
The trust agreement between the government and Banco de Costa Rica for the implementation of the expansion project of the San Jose-San Ramon road, has received approval from the Comptroller General of the Republic.
The project, indispensable for the development of the northern part of the Great Metropolitan Area, has suffered from years of delay after successive setbacks with concessionaire construction companies, social protests because of the expected rise in tolls and the burdensome compensation paid by the State to these companies.
The project must take into consideration the extension to three lanes in each direction of the stretch from Sabana to Ciudad Colón, including bridges, construction of drainage and other works.
The National Concessions Council (CNC) is waiting for the concessionaire Autopistas del Sol to present a proposal with details of the enlargement, after a study concluded that Route 27 is saturated by 70%.
President Solis has personally announced that the environmental impact study for the expansion to four lanes of Route 32 to Limon has now been approved by the environmental authority.
Almost two months after the National Environmental Technical Secretariat (SETENA) rejected the study as "flawed and incomplete", the institution has now granted the approval, according to President Luis Guillermo Solís through his own social networks.
The Environmental Impact Study for the extension of Route 32, which will cost $495 million, has shortcomings in form and substance, and does not include geotechnical or and social impact studies.
A work which is urgently needed for the Costa Rican economy is still on hold.
The National Environmental Technical Secretariat (SETENA) believes that the Environmental Impact Assessment (EIA) submitted by the MOPT and the company CDG Environmental Advisor, is "inadequate and incomplete" and in order to carry on with the evaluation, a request has been made for the presentation within six months of an annex with clarifications.
Roadworks, a free zone, a high rise residential condominium and a private school are some of the projects for which environmental impact studies were presented in April 2016.
The report "Construction projects in Costa Rica in April 2016", prepared by the Business Intelligence unit at CentralAmericaData.com, provides an updated list of major construction projects for which environmental impact studies (EIS) were presented to the National Environmental Technical Secretariat (SETENA) in April.
China Harbour Engineering Company will have 42 months to expand the road linking the capital San José with the port area in Limón.
From a statement issued by the Comptroller General of the Republic:
By attached letter, the CGR endorsed the Contract Agreement and Addenda 1, 2, 3 and 4 for the "Project Design, Renovation and Expansion of National Road No.
The very feasible expansion of the San José-Caldera highway will increase the success of a route that has favorably changed the prospects for real estate development in the west of the capital, and logistics and tourism in the Central Pacific.
EDITORIAL
An editorial in Nacion.com reports that the concessionaire of Route 27 has now presented "... an expansion project with six lanes between La Sabana and Ciudad Colón and four on the rest of the road which goes to the port of Caldera."
The Bank of Costa Rica has been selected to hold the trust which will be used to manage the project to expand the highway between the capital and the city of San Ramon, which will cost approximately $500 million.
The extension of this road is a long-standing project, and has faced a host of problems, including the cancellation of the initial concession of the work, which involved a payment of $35 million to the Brazilian construction firm OAS, which in turn had bought the contract from Autopistas del Valle.
Three months after a law was signed that supports the use of a trust to expand the San José-San Ramón highway, a bank has not yet been selected to administer the funds.
Although four banks have already expressed interest in participating in the contest, the authorities at the National Highway Council (CONAVI) not only have not selected any one of them, they are only just preparing "....
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 Nacion.com 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. "
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 National Roads Authority will be receiving proposals from private and public banks to administer the trust for the construction of the road from San Jose to San Ramon.
The banks involved have a week to present their proposals, later the National Highway Council (CONAVI) will evaluate the experience of the entities in the administration of trusts and a assessment will be made of the commission for recovery.