No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveConstruction Industry Drowning in Paperwork

Construction Industry Drowning in Paperwork

THE complicated and time-consumingpermitting process necessary for constructionin Costa Rica threatens foreign investment,is bogging down one of the country’smost important environmental-protectionagencies and may drive companies toresort to bribery of public officials, developershere recently alleged.In response, President Abel Pachecoand the Minister of Economy, Industry andCommerce, Gilberto Barrantes, this weekcalled on the country’s institutions toimprove their efficiency and competencein administrative procedures.Barrantes said it is “ridiculous” thatsome construction permits require the submissionof 37 different plans to governmentagencies.The Costa Rica Construction Chamberagrees.THE chamber published a full-pageadvertisement in the daily La Nación lastmonth calling the defective permittingprocess a “real crisis” in the sector, whichlast year accounted for an investment of$1.5 billion and 400,000 jobs in CostaRica, according to the organization.The result has been the closure of businesses,a loss of employment and adecrease in foreign and national investment,according to the advertisement.Tourism Minister Rodrigo Castro thisweek cited the lengthy construction permittingprocess as a reason for the shortageof hotel rooms during the approaching holidayseason.“A foreign business wants to open ahotel, but the permitting process takes fourto five years,” he said.This affects a company’s bottom line,as officials must keep financial interest inthe project during that wait, he added.According to other government officials,the long wait also causes some developersto proceed without permits.THE value of obtaining approved permitsalso has lead to accusations of corruptionand bribery among government officials.A financial crimes court last weekordered the Mayor of the Municipality ofLa Unión in Cartago, east of San José, andtwo Municipal Council members to threemonths of preventive prison while theyare investigated for allegedly demandingpayments in exchange for granting permitsfor urban development projects,according to La Nación.If convicted on bribery charges, MayorGuillermo Zúñiga, and council membersAsdrúbal Araya and Marcos A. Zúñiga,would face two to eight years in prison,according to the report.The preventive detention order came inresponse to accusations filed by an engineerof a development company who saidthe three functionaries conditioned theapproval a school renovation project on a“gift” of ¢12 million ($26,000), La Naciónreported.THE Construction Chamber maintainsthe permitting crisis stems from the factthat the institutions involved do not systematicallyprovide concrete answers oractions in a timely manner.Barrantes said beginning in January,2005, the government will begin traininggovernment agencies how to reform andreview regulations to avoid duplication ofprocesses, promote efficiency and reducecosts, regarding not only construction permitsbut all administrative procedures.The slow construction permittingprocess also received a boost with a newrule that the Technical Secretariat of theEnvironment Ministry (SETENA) nolonger has to give its environmentalapproval for houses smaller than 100square meters (1076 square feet) or for theremodeling of existing houses or offices,La Nación reported.Such permission will now be grantedon the municipal level.THE change is expected to reduceSETENA’s workload from 150 requests forpermission each week to 50 and greatlyreduce the workload that has bogged downthe agency. Because of the huge workload,lack of a computerized system and otherresources, approval by SETENA can takeyears.SETENA officials have told The TicoTimes in the past that the long waitprompts some developers to start withouttheir approval (TT, July 2).

Trending Now

Final Debate Sharpens Voter Choices Ahead of Costa Rica’s Election

Five presidential candidates faced off in the final televised debate on Thursday night, laying out their visions for tackling Costa Rica's pressing challenges in...

Costa Rica Stays Central America’s Priciest Vacation Destination

Costa Rica holds its position as the most expensive destination in Central America for travelers, with average daily costs per person reaching $138. This...

Venezuela Political Prisoner Releases Move Slowly as Families Wait

Venezuela's interim president Delcy Rodriguez said Friday that over 600 inmates have been released, far more than estimated by rights groups, who are demanding...

Costa Ricans Keep Election Ballots at Home in Rare Trust Based Voting System

In her living room, Priscilla Herrera safeguards, alongside Vaquita, her mixed-breed dog, hundreds of ballots for Sunday’s elections in Costa Rica, where citizens are...

Exchange Rate Climbs: What It Means for Your Costa Rica Budget

The Costa Rican colón has dropped against the US dollar in recent days, with the exchange rate moving closer to the 500 colones per...

Can a New Supermax Prison Slow Costa Rica’s Gang Violence

Last year I wrote an article suggesting that Costa Rica build a maximum security prison like the one in El Salvador. The idea was...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica