In Costa Rica, 19 projects were selected as "eligible" by the state run power company, but the same institution has ruled out opening new competitions to purchase more wind-generated power.
EDITORIAL
Investment in alternative energy is risky, because it depends on uncontrollable external factors such as unpredictable weather variations, which have particular effects on hydraulics, solar and wind power.
Starting October the Regional Electric Interconnection Commission will implement a pilot program to authorize priority supply contracts and reduce the cost of energy exports.
In the absence of long-term contracts for regional energy transactions, the Regional Electric Interconnection Comission "... asked the Regional Operator Entity (EOR by its initials in Spanish) to conduct studies to identify the levels of maximum power transfer for each country and for supply contracts to be authorized according to priority in order to reduce the cost of energy exports. "
Judicially enforcing a contract takes 1402 days in Guatemala, 920 in Honduras, 852 in Costa Rica, 786 in El Salvador, 686 in Panama, and 409 in Nicaragua.
The data comes from the 2014 Doing Business report by the World Bank.
The extreme difficulty of enforcing contracts by means of the administration of justice systems is endemic in Latin America, which, as stated an article in Miamiherald.com by Andres Oppenheimer, contributes "to slow economic growth."
Meco of Costa Rica sued the Salvadoran government and Fomilenio for $1.3 million related to increased costs in the contract to build a road.
Elsalvador.com reports: "An international arbitration court has ruled in favor of the Salvadoran government and the Millennium Fund of El Salvador (Fomilenio) who the Costa Rican company MECO sued for $ 1.3 million alleging that El Salvador breached the "financial suitability" clause of the contract for construction of section II of the Northern Longitudinal Highway: Metapan-Santa Rosa Guachipilín. The 'financial suitability', that MECO refers to concerns the calculation of the cost increases of the work over time (known as polynomial formula). "The company explained that this formula did not cover the increases in material that might be seen during the course of the execution of the work.
Outsourcing can become a big headache for a company and a source of serious losses if due attention is not paid to contractual details.
Steve Semerdjian, writing for nearshoreamericas.com, comments that, "while outsourcing has become commonplace in today’s business environment, the contracting process will, rightfully so, continue to challenge even the most senior outsourcing veterans".