Millicom announced that it exercised its right to terminate the Share Purchase Agreement for the acquisition of Telefonica's operating subsidiary in the Central American country.
The Alvarado administration has decided to terminate the contract with the company in charge of building the road to San Carlos, a road whose construction was started thirteen years ago yet still remains unfinished.
The Minister of Public Works and Transport, Rodolfo Méndez Mata, said that his plan is to hire three other construction companies and two subcontractors to take charge, separately, of solving the problems that are affecting the work.
For the fourth time in three years, the Office of the Comptroller General has found deficiencies in the hiring process being run by the UNOPS and has annulled the award of a viaduct to the construction company MECO.
Through a statement, the Comptroller General of the Republic (CGR) announced that it has finalised the appeal filed by FCC Construcción América S.A.
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.
The state run power company of Costa Rica has dissolved its contract with Hidrotárcoles SA, which was selected in 2012 to build a dam in the province of Alajuela, under the turnkey scheme.
Instituto Costarricense de Electricidad argued that the dissolution of the contract was due to missed deadlines specified in the contract. "...The agreement signed under the BOT method (build, operate and transfer) in April 2012, was made through the international competitive tender for purchase of blocks of hydroelectric power of up to 50 MW. "
Following the ending of the contract with the company Exact Change, which offers the service of exchanging currency, Aeris Holding Costa Rica has started procedures for selecting a new provider.
The company managing Juan Santamaria International Airport announced the end of the contract with the Spanish exchange services provider Exact Change, due to the fact that it has not completed the process of registering with the Central Bank of Costa Rica and the Superintendent of Financial Institutions. Therefore preparations are being made, for the coming months, to release specifications for a new tender for the service.
The government will have to pay $35 million to the company OAS for breach of contract in the award of the construction of the road from San Ramon to San José.
The payment will be made in March 2014 with funding from the National Concessions Council and the budget allocated to that entity for the coming year, said Roberto Gallardo, Minister of Planning and member of the National Council of Concessions.
The Brazilian construction company OAS is suing for $45 million over the signing of a highway concession contract, which was overturned by President Chinchilla.
Editorial
... upholding the concession contract would probably have cost Costa Rica -long-term- much more than what it will cost them to terminate it right now.
The construction company, who bought the concession from the company that was originally awarded it, has asked Costa Rica for $33.9 million to cover what it originally paid the company and others plus $11.1 million for expenses, to finalize the concession road to San Ramon.