No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCosta RicaInvestors Sue Costa Rica Over Hydroelectric Plant's Expropriation

Investors Sue Costa Rica Over Hydroelectric Plant’s Expropriation

Three German investors have filed an investment arbitration claim against Costa Rica before the International Centre for Settlement of Investment Disputes (ICSID) for the expropriation of their land for the construction of a hydroelectric power plant.

It’s based on accusations against the Costa Rican government of destroying the natural habitats of thousands of endangered species. According to ICSID, the claim amounts to approximately $1.5 billion.

The investors’ request, registered by ICSID on May 17, 2023, alleges a breach of the 1994 Germany-Costa Rica Bilateral Investment Treaty.

The case

On February 25, 2021, Kurt Harald Grüninger, Alexandra Grüninger, and Sascha Spittel notified the Costa Rican Government of their intention to resort to investment arbitration for the losses suffered as a result of the land confiscated by the Costa Rican Electricity Institute (ICE) to build the Reventazón hydroelectric power plant.

They owned a property along the Reventazón River, with approximately 193 hectares of reforested land surrounding two protected lakes, home to many species of flora and fauna, and a rafting beach frequented by tourists. The estate had views of the Turrialba Volcano, making it an ideal place for tourism.

The plaintiffs claim that Costa Rica, through ICE, extracted significant volumes of construction material from the river wall that supports part of Lancaster. They also accused the government of destroying the watercraft beach and altering the river’s course. They reported numerous landslides due to the excavation and extraction of materials related to the construction of the Power Plant.

In addition, they declared that all these construction works had put the riparian part of Lancaster and its main lake at risk of collapse.

Finally, the petitioners argued that the property was no longer suitable for the development projects they had planned and that they had not received any compensation from Costa Rica.

The Reventazón

The Inter-American Development Bank financed the Reventazón hydroelectric power plant, one of the largest in Central America.

It began operations in 2016 and was managed by the Costa Rican Electricity Institute (ICE). Earlier this year, there have been warnings of possible risks in the Reventazón reservoir. ICE announced it would be emptying it due to cracks and leaks.

Environmental damage

The Lancaster estate was of great ecological value, as Lakes are home to some of the planet’s most unique and endangered species of flora and fauna. They were declared protected wetlands in 1994.

Also, they’re located on the Barbilla-Destierro Biological Corridor (Jaguar Trail), one of Costa Rica’s most important wildlife corridors. The Jaguar Trail is vital in the free migration of jaguars and threatened wildlife.

The Grüningers and Spittel claim damages on their conservation and ecotourism investments. Since they acquired the property, they have reforested and rehabilitated lakes, built road access, and installed a water supply system.

Trending Now

Earthquake Shakes Costa Rica’s Central Valley

An earthquake shook Costa Rica early Friday morning. The tremor occurred at 12:45 a.m. with a magnitude of 4.4. Its epicenter was located 1...

4,500 US Marines Launch Anti-Drug Operation in Latin America Waters

In a significant escalation of efforts to counter organized crime and drug trafficking networks, the U.S. Southern Command (SOUTHCOM) has deployed more than 4,500...

Costa Rica Anglers Catch Rare Orange and Albino Nurse Shark

Anglers on a fishing trip off Costa Rica's Caribbean coast caught a nurse shark unlike any seen before: bright orange skin and stark white...

Panama Canal Warns of Traffic Decline as Economic Uncertainty Grows

The Panama Canal will take in about $400 million less in the next fiscal year due to a drop in ship traffic caused by...

US Cracks Down on Costa Rica’s Narco Network with New Sanctions

The US Treasury Department moved against a Costa Rican drug trafficking ring today sanctioning four individuals and two entities tied to cocaine smuggling and...

In Costa Rica, Rare White-Lipped Peccaries Still Survive

Today we meet the white-lipped peccary, a large animal that travels in large groups that has disappeared from a large part of its historical...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica