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Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.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

Costa Rica’s First Artificial Beach Runs on Well Water as Guanacaste Dries Out

Costa Rica's first artificial beach draws on well water as Guanacaste heads into an El Niño dry season with forecasts of 80% less rain.

Costa Rica Raises Mandatory Vehicle Insurance Rates for 2027

Anyone owning a car in Costa Rica will face higher mandatory insurance costs in 2027, with private vehicles, motorcycles and buses among the categories...

Costa Rica Searches Guácimo Farm for the Bodies of 10 Missing People

Investigators searched seven homes on a Guácimo farm linked to the Coco Guácimo network after tips that at least 10 missing people may be buried there.

Costa Rica’s Brisa Hennessy Wins in Portugal and Jumps 20 Places Toward the 2027 World Tour

Costa Rican surfer Brisa Hennessy won the EDP Ericeira Pro with a late 7.50 wave, climbing from 24th to fourth in the Challenger Series standings with one event left.

Prosecutors Probe Clearing on Protected Land Beside Montezuma Waterfall

Inspectors found trees cut and a hillside terraced on 6,564 square meters near Montezuma's waterfall, including public heritage land. The criminal case remains open.

Transnica Restarts Bus Service Between Costa Rica and Nicaragua

International bus company Transnica announced that it is restarting daily service between San José, Costa Rica and Managua today following a temporary court ruling...

Costa Rica Raids 80 Locations in Major Fuel Theft and Organized Crime Investigation

Costa Rica's OIJ carried out 80 raids Friday against an alleged network accused of stealing 654,000 liters of fuel and $1.5 million in cargo, with 22 detained.

Tropical Wave 50 Reaches Costa Rica Saturday Night With More Heavy Rain

Tropical Wave 50 reaches Costa Rica late Saturday. Expect the heaviest rain in the Northern Zone and Caribbean.

Costa Rica Tourism Falls for a Second Month as US Arrivals Drop

Costa Rica tourist arrivals fell 2.4% in September, the second monthly drop, as US visitors slipped 3.3% and Liberia grew 11.8%.
Loading…

Latest News from Costa Rica

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