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Desarrolladora Mexicana de Infraestructura S.A. DE C.V. (PRODEMEX), responsible for building the Cartago hospital, has withdrawn its bid.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

Can environmentalism in Costa Rica learn lessons from the past?

Does the rise of populism in Costa Rica mean the end to the country’s green credentials? Perhaps, but it doesn’t have to be that...

Is Snoop Dogg’s Costa Rica Concert Still Happening?

Snoop Dogg’s highly anticipated concert in Costa Rica remains scheduled for December 3, despite recent legal developments involving one of the event’s producers. The...

Costa Rica Raids 80 Locations in Major Fuel Theft and Organized Crime Investigation

Costa Rica's OIJ carried out 80 raids Friday against an alleged network accused of stealing 654,000 liters of fuel and $1.5 million in cargo, with 22 detained.

Costa Rica Landfill Plan in Mora Faces New Land-Use Challenge

A decades-long fight over a proposed waste project in Picagres has flared again after the Mora municipal administration issued a new land-use certificate for...

Flying to Panama? Expect Delays After the 7.7 Quake Closed Tocumen

Panama's Tocumen airport halted flights after the 7.7 quake. What it means if you're flying between Costa Rica and Panama.

Costa Rica’s Playa Sámara Residents Push to Restore Long-Damaged Mangrove

Residents of Playa Sámara are pushing for the restoration of the Río Lagarto mangrove, an ecosystem that environmental authorities say was heavily altered by...

Costa Rica Faces Haiti at a Packed Saprissa With Bryan Ruiz’s Future Undecided

Costa Rica closes its Concacaf Nations League group stage tonight against Haiti, and a national team that went nearly a year without a win...

Costa Rica Suspends Investigation Into Who Ordered Roberto Samcam’s Murder

Costa Rica’s prosecutor’s office has suspended its investigation into who ordered the 2025 killing of retired Nicaraguan military officer Roberto Samcam, an outspoken critic...

Costa Rican Scientists Revive Fish Larvae Research to Protect Fisheries

Costa Rican scientists and marine conservation specialists are working to revive an important field of research that could help protect fish populations and improve...
Loading…

Latest News from Costa Rica

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