No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

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Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.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 Files Constitutional Reform to Widen Extradition of Citizens

Costa Rica is preparing to make a big change to who it can send abroad to face trial. The government says it will ask...

Wiretaps Allege Costa Rica Police Tipped Off Diablo’s Criminal Network

Wiretap recordings incorporated into the criminal case against the organization led by Alejandro Arias Monge, known by the alias "Diablo," describe a network of...

Cincinnati Open 2026 Guide: Dates, Players and What to Know

The Cincinnati Open 2026 runs August 8-23 in Mason, Ohio. See key dates, leading players, Latin American names and what fans should know

Costa Rica’s Romería Closes With Zero Deaths and 1,772 Medical Cases

Costa Rica's Romería closed without a single reported death, ending a nine-day emergency operation in which the Costa Rican Red Cross treated 1,772 people...

Costa Rica Prices Fall Again as Inflation Remains Below Zero

Consumer prices in Costa Rica fell again in July, reversing two months of increases and keeping the country in a prolonged period of negative...

Costa Rica Offers Panama Two-Part Plan to End Trade Block

Costa Rica has presented Panama with a two-part proposal aimed at ending a seven-year agricultural trade dispute that has blocked meat, dairy products, fruit...

CONCACAF Calls for Reckoning With Infantino’s FIFA Leadership

North and Central American football's governing body CONCACAF yesterday called for a "comprehensive reckoning with" Gianni Infantino's leadership of FIFA after his aborted plan...

Former Herediano Executive Pleads Guilty in U.S. Gambling Case

Michael Lawrence Brannon, a U.S. businessman who previously held an ownership stake and board position in the group that managed Club Sport Herediano, has...

Nicaragua Moves Ahead With Reform to Exclude Opposition

Nicaraguan President Daniel Ortega warned Friday that he will move forward with a constitutional reform aimed at excluding the opposition from elections, despite objections...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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