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Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.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

Forbes Spotlights La Fortuna’s Turn Toward Costa Rican Fine Dining

A Forbes travel feature published on the 14th argues that La Fortuna is quietly redefining what upscale dining looks like in Costa Rica, and...

Panama repeats China invitation to Canal Neutrality Treaty

Panama’s government again asked the People’s Republic of China to accede to the protocol of the Treaty Concerning the Permanent Neutrality and Operation of...

New Costa Rica Law Requires Wildlife Crossings on Public Infrastructure

Costa Rica now has a law requiring wildlife crossings on public infrastructure projects, but the regulation that will actually put it into practice could...

A Nostalgic Look Back at Life in Costa Rica

From bankbooks and free bocas to machete-cut grass and Lada Nivas, a longtime resident looks back at the Costa Rica he first encountered and how the country has changed.

Central America Drought Kills Cattle and Threatens Food Supply

Animals are dropping dead amid the worst drought in living memory for many Central Americans, who are dealing with the unforgiving effects of the...

Costa Rica Ranks Fifth in the World for Retirees in Global Relocation Index

Costa Rica ranks 20th out of 192 countries and territories in the 2026 Global Relocation Index, and fifth in the world for retirees, according...

Dental tourism, because Medicare doesn’t cover for dental treatment

C. Everett Koop, known for his tenure as U.S. surgeon general during the Reagan administration, was renowned for his pediatric surgery and attention to...

Costa Rican Influencer Julián Valverde Released by ICE Without Bond

Costa Rican content creator Julián Valverde was released from U.S. Immigration and Customs Enforcement custody in Florida on Sunday, Sept. 20, after five days...

OAS Countries Seek October Meeting to Consider Measures Against Nicaragua

A group of five countries in the Organization of American States (OAS) is proposing that the region’s foreign ministers meet on October 2 to...
🌴 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