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Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.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’s First Gold Lands as Four Clubs enter Copa Centroamericana

The Concacaf Copa Centroamericana kicks off its fourth edition Tuesday, and although opening night belongs to clubs from Belize, Honduras, Nicaragua, Panama and Guatemala,...

Diablo Spends First Night at La Reforma, All Visits Suspended

Alejandro Arias Monge, the man Costa Rican authorities had described as the most wanted fugitive, spent his first night in custody inside the maximum...

Ecuador Scientists Identify 8,000 New Insect Species

Scientists in Ecuador announced Thursday that they had genetically identified 8,000 new insect species in a protected forest in the Ecuadorian Chocó Andino, a...

Costa Rica’s Rebeca Grynspan Leads in Race to Head United Nations

Costa Rican diplomat Rebeca Grynspan emerged as the early frontrunner to become the next leader of the United Nations after receiving the strongest support...

Panama Named the World’s Best Country for Expats for a Third Straight Year

Panama has been ranked the best country in the world for people living abroad for the third consecutive year, according to the Expat Insider...

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...

Costa Rica Shuts Four Kilometers of Ruta 2 on Saturday for the Romería

If you drive between San José and Cartago, get ready to lose the road on Saturday. On August 1, Traffic Police plan to close...

Costa Rica Investigated Possible Drug Money Inside Soccer Club

Costa Rican investigators examined whether money from an alleged international cocaine-trafficking organization was invested in Puerto Golfito F.C., a former second-division soccer club based...

Rincón de la Vieja volcano raised to caution level after 38 eruptions

If you have a Rincón de la Vieja hike or a hot springs day trip on your calendar, the volcano's official activity level went...
🌴 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