HomeTopicsBusinessCosta Rica's Solís administration seeks changes to $485 million China-backed highway contract...

Costa Rica’s Solís administration seeks changes to $485 million China-backed highway contract

Costa Rica will send China a new proposal by the end of the month for a revised contract to expand Route 32, which connects San José with the country’s Caribbean port city of Limón, Public Works and Transport Minister Carlos Segnini said Tuesday.

Following a weekly Cabinet meeting Segnini said Chinese officials had agreed to consider renegotiating the terms of the $485 million contract signed by former President Laura Chinchilla’s administration. The plan calls for a four-lane expansion of 105 kilometers of the highway, the main access to the Caribbean.

Officials from the Public Works and Transport Ministry, or MOPT, traveled last week to China to discuss what President Luis Guillermo Solís’ administration believes are flaws in the contract that could jeopardize the project.

Costa Rican officials asked for an extension through February to provide a final evaluation. Costa Rica hopes to revise a loan agreement with the Export-Import Bank of China, as well as the deadlines for property expropriation and the relocation of public utilities.

Other problems include the terms of arbitration for potential legal disputes. The contract states that disputes would be settled in Chinese tribunals. Costa Rica hopes to appoint a neutral third country in such cases.

Costa Rica also now opposes waiving immunity for government officials during legal disputes, which Solís’ administration believes is unconstitutional. Segnini earlier this year said several provisions of the contract need further review, including clauses that set substantial fines if Costa Rica fails to comply with the terms.

Representatives of several professional associations and private sector chambers also say the agreement is problematic.

Transport officials are seeking to renegotiate provisions by Chinese contractor CHEC that require only Chinese workers and companies be used to carry out construction.

“We made ​​it clear to our counterparts in China that while this project is significant and important for our country, the [contract] provisions were negotiated by the previous administration under conditions that we believe are not appropriate for our country’s interests,” Segnini said. “Those conditions not only jeopardize final approval in the Legislative Assembly, but they also could be ruled unconstitutional by the Constitutional Chamber of the Supreme Court.”

The minister said China would respond by Nov. 30.

Members of a legislative commission focused on issues affecting Limón who met with Segnini before the Cabinet meeting appeared skeptical about the minister’s report.

Social Christian Unity Party lawmaker Luis Vásquez said, “Mr. Segnini made no progress and failed to bring concrete proposals from China.”

The National Liberation Party’s Danny Hayling said all 18 of his party’s lawmakers are willing to pass the bill to approve the contract in its current form, because “it is clearly beneficial for the country.”

A majority of lawmakers last week agreed not to discuss that bill until President Solís returns from a trip to China in January. Solís hopes to directly renegotiate with China’s Xi Jinping some of the contract clauses.

Trending Now

El Salvador’s Marcelo Arévalo Qualifies for ATP Finals Despite Vienna Upset

El Salvador’s Marcelo Arévalo and Croatian partner Mate Pavić have secured their place in the 2026 ATP Finals for the third consecutive year, although...

46 US Veterans Tried Ayahuasca in Costa Rica, Where Rules Remain Murky

Forty-six American veterans and first responders drank ayahuasca at a Guanacaste retreat to ease combat trauma. Their stories are moving, but the evidence is thin and Costa Rica's rules remain unsettled.

Costa Rica Plans Blue Zone Seal and Wellness Tourism Push for Nicoya

Costa Rica plans an official Blue Zone seal and three Nicoya wellness tourism products by 2028, plus new care for centenarians.

Costa Rica’s Creepiest Ghost Stories and Mysterious Legends

Every society has tales of terror that challenge our imaginations and our courage. Costa Rica has folk tales that include a priest who lost...

Heading Out for Halloween in Costa Rica? Expect More Police on Patrol

Costa Rica police will patrol cemeteries, churches, bars and costume parties this Halloween weekend. Here's what to expect if you're heading out Oct. 31.

American Pilot Overturns Mother’s Costa Rica Will Over Missing Interpreters

Costa Rica's Supreme Court has upheld the annulment of an American woman's will because she signed a Spanish-language document without the two interpreters the...

Two of Every Three Dairy Imports in Costa Rica Now Come From the US

Costa Rica imported $66.4 million in dairy products from the United States in the first eight months of 2026, nearly four times the $17.5...

Ruling Party Files Bill That Would Let Rodrigo Chaves Run Again in 2030

Legislators from Costa Rica's ruling Pueblo Soberano party filed a constitutional reform on Tuesday that would allow presidents to serve consecutive terms. Its backers...

All Three VIP Lounges at Juan Santamaría Airport Close Sunday

All three VIP lounges at Juan Santamaría Airport will be closed Sunday, Nov. 1, and the Mastercard lounge has no reopening date.
L. Arias
L. Arias
Reporter | The Tico Times |
Loading…

Latest News from Costa Rica

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