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Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.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

El Niño Is Already Cutting Costa Rica’s Coffee Harvest by Up to 15%

Costa Rica's coffee growers now expect a harvest 10% to 15% smaller than first estimated as El Niño's irregular rains and rising heat reach...

Forbes Picks Costa Rica’s Rancho Pacifico to Beat the Crowds

A Forbes feature names Rancho Pacifico, a 20-guest rainforest resort above Uvita, among its top shoulder-season escapes from the crowds.

Costa Rica Court Asked to Halt Shark Fishing Near Cocos Island

A Costa Rican environmental attorney has asked a court to temporarily prohibit the capture of several types of sharks in waters surrounding Cocos Island,...

Five Costa Rica Regions on Yellow Alert as Saturday Rain Hits Soaked Ground

If you live in or are traveling through the Central Valley, the Pacific coast or the Northern Zone, you are now under a yellow...

Djokovic Rallies in Paris to Keep ATP Finals Hopes Alive

At 39, Djokovic became the oldest match winner in Paris Masters history and kept his ATP Finals hopes alive.

Costa Rica Reopens Cambronero Highway After Nearly Two-Months

Costa Rica has reopened the Cambronero section of Route 1, restoring an important highway connection between the Central Valley and the Pacific coast after...

Nearly Two Thousand Chinese Businesses Established in Nicaragua Since Free Trade Agreement Took Effect

Nearly 2,000 Chinese businesses have been established in Nicaragua during the first two years of the free trade agreement with China, according to the...

Fire Chief Says Fernández Gave No Order on Ambulance Deal, but a Memo Cites Her

A Sept. 25 memo cites President Fernández as the basis for a $13.88 million no-bid ambulance deal the fire chief defends.

Alejandro Tabilo Falls to Rafael Jódar Again in Paris Masters Opener

Chile's Alejandro Tabilo suffered another disappointing defeat against Rafael Jódar on Monday, losing 6-2, 6-3 in the opening round of the Paris Masters as...
Loading…

Latest News from Costa Rica

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