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Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.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

Ecuador Stalls as Curaçao Makes World Cup History

For us here in Latin America, Saturday’s World Cup story was Ecuador’s missed chance. Ecuador controlled the ball, created the better chances and fired...

Why do mosquitoes bite some people more than others?

Why are some people like “magnets” for mosquitoes while others seem to escape them? According to scientists, who are still working to decipher the...

U.S. Demands Justice One Year After Roberto Samcam’s Killing in Costa Rica

The U.S. Bureau of Western Hemisphere Affairs marked the first anniversary of Roberto Samcam’s assassination in San José by calling for accountability in a...

Costa Rica Arrests Man Over Alleged Death Threat Against President

Costa Rican police arrested a man in San Carlos on Friday after authorities said he allegedly made a death threat against President Laura Fernández...

English National Exam Suspended in Costa Rica After Reported Test Leak

Costa Rica’s Ministry of Public Education suspended and annulled the National Standardized Foreign Language Exam in English after exam material reportedly circulated among students...

Costa Rica’s Mid-Year Gordito Lottery Brings Big Prizes and Local Tradition

One of Costa Rica’s most familiar mid-year rituals is back on the streets. The Junta de Protección Social, known as the JPS, officially launched...

Costa Rica’s Strongest El Niño Impacts Expected Between October and March

Costa Rica could face its most significant El Niño-related weather impacts between this October and next March according to projections from the National Meteorological...

Uruguay Let Lead Slip in Costly World Cup Draw With Cape Verde

Uruguay had Sunday’s World Cup game right where it wanted it, then let it slip away. The South American side drew 2-2 with Cape...

Costa Rica Braces for Wetter Weekend as Two Tropical Waves Approach

Two tropical waves are expected to cross Costa Rica between today and Sunday, adding instability to the weather and raising the chance of heavier...
🌴 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