No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsPoliticsBusiness sector alarmed by approval of China's $465 million loan to expand...

Business sector alarmed by approval of China’s $465 million loan to expand the highway to Limón

Representatives of several professional associations and private sector chambers expressed doubts about the plan to expand Route 32, the highway from San José to the Caribbean coast. The project is being financed with a loan by the Chinese government.  

Among a list of complaints, the Consensus Group for the Rescue of the National Road Network found it unacceptable that the Legislative Assembly’s Finance Committee decided that a $465 million loan was adequate from the Chinese company granted the project. The committee authorized the transaction with the China Harbour Engineering Company (CHEC) last week.

“This project is highly necessary but we should not move forward without getting a fair price, as well as clear and well-defined terms for the total cost that this will represent for the country,” the group said in a statement Monday.

They also questioned the Finance Committee’s decision to approve the push the bill forward without preliminary blueprints, without an estimate of materials needed, without any price and cost studies and without knowing the exact number of private lands that will be expropriated for the highway’s expansion.

Another concern pertains to the government’s apparent lack of interest in renegotiating the contract’s conditions. The loan includes a number of rigid clauses if Costa Rica fails to comply with any of the agreed conditions. The country could receive substantial fines, up to the total loan amount plus interest, if it violates certain conditions.

Last Thursday nine out of 10 committee lawmakers approved the bill under contentious circumstances. In the end, only Citizen Action Party (PAC) legislator Jeannette Ruiz voted against the measure.

In order to become a law, the bill now must be voted on twice by the full Legislative Assembly and signed into law by the president.

The Consensus Group is made up of members of the National Structural Materials and Models Laboratory (Lanamme) at the University of Costa Rica, the Federated Association of Engineers and Architects, the Costa Rican Union of Private Business Sector Chambers and Associations, the Costa Rican Construction Chamber, the Chamber of Consulting Architects and Engineers and Costa Rica’s Association of Highways and Roads.

Trending Now

How to Avoid Fake Weight-Loss Injections in Costa Rica

If you are shopping for a weekly weight-loss shot in Costa Rica, start with one fact that changes everything else: the drug most people...

Dollar hits record low in Costa Rica for third straight day

If your income arrives in dollars — a pension, Social Security, remote-work pay or rent from a property back home — this week quietly...

Costa Rica’s Reopens Highway After Landslide Closure

Route 32 reopened Friday afternoon after falling debris blocked the highway through Braulio Carrillo National Park for more than six hours, disrupting travel between...

Costa Rica Clears Legal Path for Recope to Move Beyond Petroleum

Costa Rica's Legislative Assembly has approved a reform that frees the state fuel company to work with energy sources other than oil for the...

Costa Rica Papagayo Dispute Freezes $700 Million in Investment

A court fight over the planned removal of 748 trees at Playa Panamá has grown into a broader dispute over tourism investment, jobs and...

Costa Rica Detains Immigration Officer Over Alleged Airport Scheme

Costa Rican anti-corruption prosecutors detained an immigration officer on Wednesday and searched her workplace and her home as part of an investigation into whether...

France Questions Salvadoran Referee After Spain Reaches World Cup Final

Salvadoran referee Iván Barton completed the biggest assignment of his career Tuesday, overseeing Spain’s 2-0 victory over France in a World Cup semifinal that...

Windy Start to the Week in Costa Rica With Heavier Rain Coming Tuesday

If you're planning your week around the weather, it's going to be windy and humid today but the real rain shows up Tuesday, and...

U.S. Seeks Extradition of Four Suspects in Liberia Cocaine Case

The United States has requested the extradition of three Costa Ricans and a Mexican citizen accused of helping an international drug network move cocaine...
L. Arias
L. Arias
Reporter | The Tico Times |
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel