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Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.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 Chikungunya Cases Spread Inland as CDC Refreshes Travel Notice

The CDC refreshed its Costa Rica chikungunya notice on July 30, but Health Ministry data now puts a second cluster well inland of the province it names.

Costa Rica’s Economy Slows as Central Bank Warns of El Niño Risk

Costa Rica's Central Bank has lowered its growth forecast for this year, pointing to a climate shock that has already begun to weigh on...

Costa Rica Trains Will Run 27 Hours Straight for the Romería

If you need to move between San José and Cartago this weekend, the train just became the easiest way to do it, and the...

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 Warns of Poor Air Quality as Saharan Dust Arrives

A new push of Saharan dust is expected to spread across Costa Rica this week, bringing hazy skies, reduced visibility and poorer air quality,...

FIFA’s Plan to Sell World Cup Stakes Lands on Costa Rica’s Desk

Costa Rica's football federation has aligned itself with regional pushback against FIFA's plan to bring private investors into the ownership of its commercial operations,...

Costa Rica Moves to Widen Extradition of Its Own Citizens

President Laura Fernández asked lawmakers on Monday to widen the narrow list of crimes for which Costa Rica may hand its own citizens over...

Trump’s Granddaughter Puts Guanacaste Beach Town in Front of 1.5 Million Viewers

A travel vlog posted last week by Kai Trump, the eldest granddaughter of U.S. President Donald Trump, has put a small stretch of Guanacaste...

Why “Diablo” Got Only Three Months in Costa Rica Custody

A Costa Rican court has ordered three months and 22 days of preventive detention for a man surnamed Arias, known by the alias "Diablo,"...
🌴 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