Costa Rica Highway Terror and Incompetence

It seems like a nightmare but instead of just being a bad dream, this causes serious ongoing anxiety. Anything related to highway construction and public works concessions has, in merely a decade, become a source of shame and anguish in Costa Rica.

Even the bickering between the Treasury, concerned over the correct use of public funds for highways, and the municipal authority administrations that leave so much to be desired, adds to the surrealism of this national political scenario.

Now it is the turn of the Caldera highway concession – a 76.8 km stretch that would supposedly reduce the trip to the Pacific to half an hour.

Concesiones Viales S.A. (COVISA), a part Canadian (Lavalin), part Argentine (Jose Cartellone Construcciones Civiles S.A.) company that won the contract informed the government last week that it was pulling the plug on the San Jose – Caldera project.

COVISA blames the government for delays in expropriating 18 privately owned land plots needed for the rights of way, and costs are in the region of $144 million, exacerbated by the increase in fuel prices. COVISA was to put up the monies upfront to finance the work and recover the investment through road tolls.

According to Roc+¡o Aguilar, technical secretary for the National Council for Concessions (CNC), only 12 farms are pending compensation. But this still entails going through all the lengthy legal procedures to take possession of these properties and BID (Inter-American Development Bank) and BCIE, who are partly backing COVISA, have indicated that no funds will be available for the project until all land rights are in order.

It’s the old land ownership saga; still dragging on until the judges have their final say.

Who knows what the outcome will be of all these new delays or the Min. of Public Works’ efforts to salvage the project? Minister Randall Quiros stated that every way possible is being looked into to prevent COVISA quitting the project and “if no mutual agreement is reached, we hope to negotiate for the contract to be terminated pending Treasury approval .

But it’s opened up old wounds.

Public works concessions and road building weigh over the country like a curse. As if the constant media coverage on the highways crisis and concessions weren’t enough, the Caldera wound that has now reopened has been festering for 26 years.

This is only a little less than the unfortunate Costanera Sur road planned 40 years ago with every public and private upheaval possible. Ours must be the satisfaction of having the world record for state and private inefficiency. The Caldera highway’s latest chapter started in February 2000 when the bids were placed. The contract was approved in August 2003 a total of three and a half years.

Work started in 2004 and in the same year, the work stopped.

We don’t know when this state incompetence will finish. What is certain is the damage caused to the economy, public services and people’s rights.

Remodelling the Juan Santamaria international airport, Pococi prison, the highways, Tobias Bolanos national airport, the Caldera docks; examples of state incapacity in all its splendour with no hope in sight to set things to rights nor for due investigation and sanction.

Our thanks to our friends at La Nación – Costa Rica’s largest Spanish circulation newspaper for their permission to summarize their articles.

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.