The Special Commission on Infrastructure of the Costa Rican Assembly endorsed the bill that seeks to regulate the schemes for the development of public-private partnership projects.
The initiative, which has yet to go beyond the debate in the Legislative Plenary, establishes the processes and modalities for promoting private investment for the development of public infrastructure, public services and services related to these, applied research projects and/or technological innovation.
In El Salvador, the contract for the financing, design, construction and operation of the San Oscar Arnulfo Romero y Galdámez International Airport Cargo Terminal is tendered under the Public-Private Partnership format.
The project contemplates two phases of development: Phase 1 consists of financing, design, expansion, construction, equipment, improvement of maintenance and operation of the existing Cargo Terminal.
In the concession model proposed by the government, one operator can be the virtual operator of a logical channel, management-multiplex concessionaire and / or network administrator at the same time.
The Vice Ministry of Telecommunications has presented its proposal for a reference model for the transition to digital television, in which it details the concession model and partnership opportunities between concessionaires, details of the use of the radio spectrum, aspects related to digital solidarity, deployment of DTT and the expected results of this technological change under the ISDB-Tb standard.
The failure in this country of a model which is successful in others, can be reversed with more efficiency in tender processes and improving the promotion of the projects.
The inability to properly promote and explain the format explains in part its failure in country.
While in other countries these kinds of concessions have proven to be one of the best formats for the development of public works, the mere mention of the word generates negative reactions in Costa Rica from a major part of the population.
Concessions are still -if properly implemented- the ideal method for the implementation of large public works projects.
From a press release issued by the Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP):
The Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP) indicates that the system of granting concessions is a valid and suitable model for the state to finance the public works and services necessary to enable us to improve the competitiveness needed by the country.
It is very difficult to understand as reasonable the Costa Rican Comptroller's annulment of the award for a Convention Centre by the Costa Rican Tourism Institute.
EDITORIAL
An article in Elfinancierocr.com reviews the details of a situation that is being repeated ad nauseum in most Central American countries, namely the difficulty of awarding important public works contracts with a minimum of speed and efficiency.
Legal security of certain investments may be in doubt if arguments put forward by the Legislature regarding decision-making powers of award of state property thrive.
Citing as a justification the text of Article 140, paragraph 19 of the Constitution of Costa Rica, the President of the Legislative Branch, Juan Carlos Mendoza, has expressed his conviction that it is the Legislative Assembly which is responsible for approving the concession award for a container terminal at the port of Moin.
In what seems a never ending story, the government of Costa Rica has opened the possibility for new dialogue with unions from the ports of Limon and Moin.
The Costa Rican government announced that in discussions with port unions (SINTRAJAP) a two month timeframe to reach an agreement was set.
Japdeva opposes giving in concession the privatization, modernization and operation of the ports of Moin and Limon.
Company Royal Haskonig conducted a study which calculated the actual cost of building and operating the new port on the Costa Rican Caribbean coast.
Back in 2004, authorities had set a reference price of $812 million. Haskonig’s figure is 17% higher.
Allan Hidalgo, executive president of Japdeva, the port authority for Limón, told BNAmericas that the study also “raised the expected return on investment from 15% to 17%, and calculated the cost of handling one container at $252, up from $169. These variations make for a more attractive project”.