HomeArchiveOpposition leaders, government clash over Caribbean highway expansion project

Opposition leaders, government clash over Caribbean highway expansion project

Opposition politicians have been making a big fuss lately over the terms of a major loan from China to fund expansion of Costa Rica’s Route 32, a main highway to the Caribbean coast.

In June, Costa Rica signed a loan agreement with the People’s Republic of China for $395.7 million to improve and expand the 107-kilometer highway that connects the capital with the province of Limón.

The agreement was signed during a visit to Costa Rica by Chinese President Xi Jinping. As with past deals involving the Asian giant, under the terms of the loan deal with Costa Rica, China gets to choose the construction company, and they selected China Harbour Engineering Company Ltd. (CHEC).

However, last week, Citizen Action Party lawmaker Manrique Oviedo said that CHEC is an offshoot of the merger between the Communications Construction Company Limited (CCCC) and other companies. In 2009, the World Bank barred CCCC from its projects for having engaged in alleged acts of fraud and corruption in the Philippines.

The company’s contract in Costa Rica was signed without a green light from Costa Rica’s Comptroller General’s Office, according to Oviedo, and approval “was granted in only seven days.”

The last step before the project moves forward is a yes vote by the Legislative Assembly.

Oviedo also said the Chinese loan is overpriced by $70 million when compared to a recent similar contract between the National Roadway Council and a Mexican firm.

Public Works and Transport Vice Minister José Chacón Laurito last week told the daily La Nación that his ministry, MOPT, “was unaware” of CCCC’s appearance on the World Bank’s blacklist.

“Regardless of the World’s Bank notice, the country can sleep peacefully, as we signed a ‘shielded’ commercial contract,” said Chacón, referring to promised daily inspections and oversight by an independent international firm.

MOPT also will rely on inspections by experts from the Technology Institute of Costa Rica and the National Laboratory of Materials and Structural Models of the University of Costa Rica (LANAMME), the vice minister said.

The PAC lawmaker accused China of attempting to impose conditions for dispute settlements, noting that “the rights and obligations of the parties shall be governed and met under the laws of China,” according to the contract. That, Oviedo said, “would mean surrendering the country’s sovereignty.”

Chacón said those provisions apply only to the terms of the loan, and the actual project would be subject to a commercial contract between Costa Rica and the construction company.

“We will not have to go to Beijing to resolve any [possible] disputes, but to Washington, to a World Bank commission that would serve as a referee,” Chacón said.

On Tuesday, PAC presidential candidate Luis Guillermo Solís urged President Laura Chinchilla to form of a commission to review the loan prior to sending it to the Legislative Assembly for approval.

He suggested the commission be composed of members of LANAMME, the Costa Rican Engineers’ Association, the Costa Rican Chamber of Construction, the Comptroller General’s Office, the Attorney General’s Office and the Ombudsman’s Office.

Chinchilla dismissed the idea, saying, “The only commission needed is the one composed of 57 members of the Legislative Assembly, who will evaluate the contract.”

At the end of her weekly Cabinet meeting on Tuesday, Chinchilla said she was concerned the Chinese government would stop cooperating with Costa Rica due to the constant bickering of “some people” over joint projects involving the Asian giant. 

Trending Now

Costa Rica’s Former Simón Bolívar Zoo Opens for Coffee Day

San José residents will get another chance to walk the grounds of the former Simón Bolívar Zoo on Saturday, October 3, when the site...

Costa Rica Blows 3-0 Halftime Lead in 4-3 Home Loss to Curaçao

Costa Rica led Curaçao 3-0 at halftime in its Nations League opener, then conceded four second-half goals as home fans turned on coach Fernando Batista.

Costa Rica Airport Warns Drone Incidents Are Disrupting Flights

Reports of drones flying near San Jose's Juan Santamaría International Airport have increased sharply this year, prompting airport officials to warn that unauthorized flights...

Who Is Costa Rica Really Competing With for Tourists?

Costa Rica's tourism board says its rivals are Thailand, Indonesia and New Zealand, not its neighbors. Business chambers see a wider field and warn the country is getting too expensive.

Playa Blanca Stays Open for Now as Officials Map the Protected Wetland

Playa Blanca remains open despite a court order suspending access to its marine wetland. What SINAC and MINAE decide this week will set the rules.

Water Rationing Hits 74 Communities as El Niño Dries Out Costa Rica’s Pacific Side

If you live on Costa Rica's northern Pacific side, your tap may already be running on a schedule. Community water systems in 74 communities...

Remote Osa Eco-Lodge Playa Cativo Joins Small Luxury Hotels of the World

Playa Cativo Lodge, a secluded beachfront retreat on the Golfo Dulce in Costa Rica's Southern Zone, has been admitted into Small Luxury Hotels of...

Costa Rica Tourism Loses 20,000 Jobs as Strong Colón Squeezes Small Operators

Costa Rica's tourism sector employs 20,137 fewer people than two years ago, with microbusinesses hit hardest as the strong colón erodes margins.

Costa Rica’s Laguna Río Cuarto Loses Visitor Services

Laguna Río Cuarto will remain accessible, but the community organization managing the Costa Rica attraction will stop providing visitor services beginning September 28.
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