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Latin America Investment News on Viva Tropical

Investors Avoid Costa Rica’s Rural Areas

Article Summary:

Although Costa Rica provides attractive tax incentives, the lack of quality telecommunication services and public infrastructure deters investors from setting up in rural areas of the country.

Photo Credit: Nacion

Original Article Text From Nacion via Google Translate :

Incentives Under Development in Areas Not Tempt Companies

Telecommunication services poor, poor public infrastructure and lack of skilled labor, are problems that undermine the tax incentives offered to companies nationwide to be installed in less developed areas.

Since 2010, Costa Rica offers exempt from income tax for companies that choose to settle in zones in these marginalized. However, to date, has not materialized in any project.

Currently, 75% of national exports out of the Central Region, as happened in 2007.

Gabriela Llobet, director general of the Costa Rican Coalition for Development Initiatives (Cinde) recognizes the problem, but says there is no great crash of two things: first, to realize an investment requires a process of at least one year and second There are four projects near formalized.

Puntarenas mentioned that the firm will install ADS Mexicana, dedicated to manufacture plastic pipe. In Limon, two projects is expected to close before the end of the year and is well advanced in Tilarán management with Aegis, which already has a call center here.

The less developed definition is determined by the Ministry of Foreign Trade on the basis of parameters provided by the Ministry of Planning, as employment, income, education and other rate.

Examples. Llobet said Cinde working since 2010 on a series of initiatives to guide municipalities and other stakeholders in the development of necessary items.

For now, he said, will be installed in Limon at least one agribusiness firm, which requires good roads and a nearby port. On the contrary, the needs are Tilarán electricity, telecommunications and skilled labor and Puntarenas, the nearby port of Caldera is crucial.

Maureen Ugalde, Deputy Mayor of Tilarán, highlighted the expectation for the possible arrival of Aegis. It is expected to create 300-500 jobs. The direct benefit will be for Tilarán, Cañas and Bagaces.

The presence of the University of Science and Technology Invenio area is very important, as staff prepare.

The mayor of Greece, Adrián Barquero, said he plans to build an industrial park on 138 acres that are part of the hacienda La Argentina, which would mean the creation of between 15,000 and 20,000 jobs.

Link to Original Article:

From Nacion

  • Jack

    This really is Cost Ricas achilles heel, infrastructure. The country needs to step up and invest in roads and telecommunications in their rural areas, it is already way behind some of its neighbors, Panama in particular.

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