HomeTopicsHealthCosta Rica's Monetary Policy Jeopardizes Crucial Hospital Construction

Costa Rica’s Monetary Policy Jeopardizes Crucial Hospital Construction

The government’s monetary policy has significantly impacted various sectors of the country. In this context, the Costa Rican Social Security Fund (CCSS) announced that the Mexican company Promotora y Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.

PRODEMEX cited the country’s macroeconomic situation as a primary reason for exiting the project. The company emphasized the appreciation of the Costa Rican colón and its effects on the project’s viability. According to PRODEMEX, the economic outlook has changed considerably since they initially submitted their bid to build the hospital.

“It is evident that a project of this magnitude can only be successfully executed and completed with the commitment and support of all stakeholders involved, in accordance with the applicable legal framework,” PRODEMEX stated.

Moreover, the appreciation of the colón has affected the economic feasibility of the project, as the contract did not include adjustment mechanisms for such fluctuations.

PRODEMEX also highlighted the country’s political situation as another reason for withdrawing its offer. They pointed to the disagreements between the CCSS and the Ministry of Health, which have generated uncertainty, particularly following a Ministry of Health resolution in May 2023 that deemed the land “unsuitable” for hospital construction.

“The political uncertainty surrounding the project, and the lack of assurance regarding its execution as originally planned, constitutes a true fortuitous event (act of the prince), justifying our withdrawal and exempting us from liability,” the company added.

The hospital project was awarded after a thorough analysis of bids from four companies by the Infrastructure and Technology Department of the CCSS. PRODEMEX received the highest score, with 98.22%, followed by Compañía Constructora Van Der Laat y Jiménez, S.A., with 83.01%, Consorcio Edica HMPJ with 79.90%, and Consorcio Edificar-Estructuras 2022 with 74.09%.

Congresswoman Jhoanna Obando presented several motions on Thursday before the Cartago Commission, calling for a hearing with representatives from PRODEMEX, the Ministry of Health, and the CCSS, following the company’s resignation.

Unfortunately, due to government’s decisions and the disputes between officials, the people of Cartago will face further delays in the construction of a much-needed hospital.

Trending Now

Panama Earthquake Aftershocks Could Shake Costa Rica for Weeks

Costa Rica could experience more tremors in the coming days and weeks as Panama continues to record aftershocks from yesterday's powerful magnitude 7.7 earthquake....

Magnitude 7.6 Quake Centered in Panama Is Felt Across Most of Costa Rica

A powerful earthquake centered in southern Panama shook much of Costa Rica today. The long, rolling motion sent people out of homes and offices...

Some Liberia Hospital Patients Have Waited Nearly a Week in a Chair for a Bed

Patients at Guanacaste's main public hospital in Liberia say they have spent up to six days sleeping in emergency-room chairs while waiting for a bed.

El Niño Peak Expected in December With Record-Warm Pacific Waters, WMO Warns

El Niño has not peaked yet. The WMO expects it to keep strengthening until around December as Pacific waters head for record heat.

Snoop Dogg’s Costa Rica Promoter Says He Once Turned Down a Suitcase of Cash

Don Stockwell, the promoter of Snoop Dogg's now-canceled Costa Rica concert, told prosecutors he once rejected a suitcase full of cash and never suspected drug money.

Panama Celebrates Removal From European Union Tax Blacklist

The European Union announced today that it had removed Panama and Vietnam from its tax haven blacklist, citing progress made by both countries. The...

Iron Maiden Ends 10-Year Absence With 50th-Anniversary Show in Costa Rica

Iron Maiden returned to Costa Rica after 10 years, bringing its 50th-anniversary tour and a song never played here before.

The Night Costa Rica Witnessed Central America’s Worst Soccer Tragedy

This month marks the 30th anniversary of the worst soccer tragedy in Central American history. The setting was Estadio Mateo Flores in Guatemala City....

ATP Proposes $350 Million Player Compensation Plan and Major Ranking Changes

The ATP has unveiled plans to increase annual player compensation to approximately $350 million by 2028, alongside major changes to the men's professional tennis...
Loading…

Latest News from Costa Rica

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