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

Costa Rica Plants a Tiny Urban Forest in Curridabat

Around 1,540 native plants are being placed in a small area of Curridabat to create an experimental urban forest using the Japanese Miyawaki method.

Costa Rica Is Setting Tourism Records and Its Hotels and Restaurants Are Still Losing Ground

Costa Rica is taking in more tourists and more foreign currency than it ever has however, its hotels and restaurants are not doing well....

Costa Rica’s Mangroves Face Growing Threats From Pollution and Development

Costa Rica’s mangrove forests protect coastal towns, support fishing communities and provide breeding grounds for marine life. Researchers warn that pollution, construction and changes...

Costa Rica’s Rebeca Grynspan Slips to Second in UN Race

Costa Rican economist and former vice president Rebeca Grynspan has fallen to second place in the race to become the next secretary-general of the...

Costa Rica Declares a National Emergency in Nine Flood Hit Areas

Costa Rica has declared an emergency in nine areas after days of heavy rain caused flooding, damaged roads and left more than 700 people in shelters

Costa Rica Court Targets Illegal Land Use at Playa Dominical

Costa Rica’s Constitutional Court has ordered the Municipality of Osa to do more to remove unapproved businesses and makeshift structures from public beachfront land...

El Salvador Faces a Major Test as TPS Ends in the United States

As Temporary Protected Status for roughly 170,000 to 200,000 Salvadorans in the United States comes to an end on September 9, most coverage of...

Argentina’s Thiago Tirante Turns Cincinnati Run Into Career Breakthrough

Argentina’s Thiago Tirante produced the best Masters 1000 run of his career in Cincinnati, highlighted by a three-set upset of Novak Djokovic.

Costa Rica Plans to Move Domestic Flights Out of Juan Santamaría

If you fly into Costa Rica and connect onward to Drake Bay, Tortuguero, Nosara or Puerto Jiménez, the government wants to move that second...
Avatar
🌴 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