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Costa Rica, Known for Lack of Infrastructure Spending, Sits on $1 Billion in Infrastructure Funds

Article Summary:

More than $1 Billion in approved infrastructure funds sits idle in Costa Rica. The funds, provided by both national and international agencies, cover the cost of eight public works projects, but delays in bidding, planning along with other obstacles, have caused delays and/or lack of start dates. Critics blame government cut backs and stringent saving policies, and say a greater effort should be made to build, mainly because resources are available.

Original Article Text From El Financiero via Google Translate :

More than $ 1,300 Billion for Infrastructure are Unused
About eight public infrastructure projects have funding approved by national and international agencies, but delays in bidding, plenary and other obstacles, the works are delayed or have not started at all.

The funding is approximately $ 1,300 million, according to a review of the Chamber of Construction.”In Costa Rica there is no planning of medium and long-term infrastructure issue,” said Ricardo Castro, vice president of the entity.

The Monthly Economic Activity Index (IMAE) of construction in November 2011 stood at 2.19%, numbers not seen since early 2009 when it began to fall.

By separating the growth of the private construction of public, we note that the latter began to fall since early 2009, when it reached up to 40% and now stands in negative territory, down from private construction, according to estimates by the House.

Although the government implemented saving policies, Gonzalo Delgado, president of the Chamber, said that it should make a greater effort to build, mainly because they have the resources.

Moin Container Terminal ($ 950 million)
The operation of this terminal, which will have six berths and 13 gantry cranes, not advance it faces demands from the National Banana (CNB) and Japdeva Workers Union (Sintrajap). Although the Administrative Law Court established a rapid procedure for the case six months ago, not even a date for the hearings.

The Government has signed the concession contract with the Dutch company APM Terminals, but the Comptroller General of the Republic have not endorsed. The investment will make the dealership.

System wastewater treatment the greater metropolitan area ($ 270 million)
The goal is to expand the sewer system for the people of San Jose and build a treatment plant wastewater. The project has a cost of $ 270 million to be funded $ 150 by the Agency Japan International Cooperation Agency (JICA) and the remaining amount by Aqueduct.

A finance its part with a loan from the Banco de Costa Rica – BCR ($ 70 million) and the Interamerican Development Bank – IDB ($ 50 million), which is not yet firm for lack of endorsement of the Ministry of Finance.

At July 30, 2011 financial progress is only 1.43%, according to a report of the Comptroller. In addition, JICA must approve the bid awarded to the Spanish company Fomento de Construcciones y Contratas.Chilamate Road – Back Kooper ($ 52 million)The new route, awarded last November, it will cross the counties of San Carlos (with 9.75 km), Greece (11.01 km) and Sarapiquí (with 6.33 km).

The project includes construction of 14 bridges or culvert.The company awarded Sanchez Carvajal, have a building within two years (24 months).The planned investment comes from the loan granted by the Corporación Andina de Fomento (CAF) for an amount of ¢ 27.066 million.

Construction has not started because the Ministry of Labour has not completed the expropriationsRehabilitation of bridges ($ 60 million)The program of the Inter American Development Bank (IDB), called PIV 1, allocates $ 33 million for the operation of 28 major bridges, 18 of these structures are located in the stretch Canas-Liberia in the American North and 10 in section Barranca- Cañas.

The first group of 18 bridges of this pathway have already been tendered and the receipt of tenders which includes the design and construction is scheduled for early 2012.

There is also a loan from the Central American Bank for Economic Integration (BCIE), which allocates $ 27 million of the $ 340 million to the construction and rehabilitation of bridges, including Virilla in Tibás (two lanes), the Virilla on the General Cañas (four lanes), rehabilitation of the Chirripo River Bridge on Route 32 and the construction of a new 4-lane structure over the river Pirro, in Heredia.

Other projects with little or no progress
Road-San Jose – San Ramon ($ 400 million)
BID 2-Program ($ 310 million)
CABEI-Financing for various stretches of road ($ 185 million)

Link to Original Article:

From El Financiero

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