No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsletterSolís administration seeks to renegotiate China contract for expanding highway to Limón

Solís administration seeks to renegotiate China contract for expanding highway to Limón

Public Works and Transport Minister Carlos Segnini on Thursday asked lawmakers to postpone for up to four months a final vote on a $485 million loan package from China to finance expansion of Route 32, the country’s main access to the Caribbean province of Limón.

Segnini appeared at the Legislative Assembly to explain why the current administration hopes to renegotiate the terms of the contract signed by President Laura Chinchilla’s administration and the government of China to expand to four lanes 105 kilometers of the highway.

The new transport minister said several provisions of the proposed contract need further review, particularly costs and a number of clauses stipulating substantial fines if Costa Rica fails to comply with the contract’s terms.

Segnini said he recently met with engineers from the University of Costa Rica’s National Structural Materials and Models Laboratory (Lanamme) and other experts who supported the government’s call for a delay in approval in order to further study and renegotiate the contract.

“We know the loan with the Export-Import Bank of China is the best option, but the people of Limón and the country deserve that the project is conducted under the best conditions, at the best price, in the shortest time and with the best quality. Therefore, it is necessary to review [the contract] and, if necessary, renegotiate some aspects of the agreements,” Segnini told lawmakers.

He criticized the project’s design, saying it consisted only of 52 blueprints with a significantly poor level of accuracy, and that it lacked support from technical studies.

The minister also questioned a Chinese request for $10 million to relocate public utilities – such as electricity, water and fuel – without a corresponding technical review from Costa Rican utilities agencies to justify the cost.

“There is nothing that assures us that the budgeted amount is appropriate for these works,” he said.

President Luis Guillermo Solís, currently on his first official trip to the United States, confirmed he will meet with Chinese President Xi Jinping to adjust the terms of the contract.

The two presidents could meet at least twice later this year. The first encounter will take place in mid-July in Brazil during a Latin American tour of the Chinese president. The second could occur during Solís’ trip to China in October to attend a summit between Chinese officials and ministers of the Community of Latin American and Caribbean States, or CELAC, which Costa Rica currently chairs.

However, Solís told reporters on Friday that the China trip would focus on CELAC business, and he would not enter into bilateral discussions over the highway project contract.

Danny Hayling Carcache, a Limón lawmaker from the National Liberation Party, expressed disapproval with the government’s position.

“We are certain that the Chinese loan is the solution most experts recommended for this project, but the government refuses to acknowledge the priority of its completion for Limón and for the country. The bill is ready to vote, our party has 18 votes to support its approval and there is no need to wait any longer,” he said.

Before taking office on May 8,  Solís told Chinese Ambassador Song Yanbin he would not accept the current loan terms, which also require Costa Rica to hire China Harbour Engineering Company to build the project. Among the contract provisions being questioned, the company would only employ Chinese workers for the project.

Another pending bill in the Assembly is a second contract with China to build an oil refinery in Limón.

Trending Now

Costa Rica Police Find Underground Illegal Gold Mining Storage Site

Costa Rican police uncovered a hidden underground storage facility packed with equipment used for illegal gold mining during weekend operations in Cerro Conchuditas, in...

Panama Remote Robotic Stroke Procedure Drawing International Attention

A remote robotic stroke procedure carried out in Panama is drawing international attention from specialists who see it as a possible way to get...

Costa Rica Faces Growing Calls to Restrict Social Media Use Among Children

A landmark jury decision in California is sending shockwaves through the global tech industry, and its ripple effects are now being felt in Costa...

Jeff Bezos’s Super Yacht Koru Sails Through Costa Rica Waters

One of the world’s most recognizable private yachts has made an appearance off Costa Rica’s Pacific coast. Koru, the giant sailing yacht tied to...

Amazon Founder Jeff Bezos Lands in Costa Rica With Wife

Jeff Bezos touched down in Costa Rica the other day. The Amazon founder arrived with his wife Lauren Sánchez aboard a private jet at...

Monteverde Reserve Caps Daily Visitors with Online Timed Entry System

Monteverde Cloud Forest Preserve now requires visitors to book timed-entry tickets through a new reservation system. The change took effect to limit daily numbers...
L. Arias
L. Arias
Reporter | The Tico Times |
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica