No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveOpposition leaders, government clash over Caribbean highway expansion project

Opposition leaders, government clash over Caribbean highway expansion project

Opposition politicians have been making a big fuss lately over the terms of a major loan from China to fund expansion of Costa Rica’s Route 32, a main highway to the Caribbean coast.

In June, Costa Rica signed a loan agreement with the People’s Republic of China for $395.7 million to improve and expand the 107-kilometer highway that connects the capital with the province of Limón.

The agreement was signed during a visit to Costa Rica by Chinese President Xi Jinping. As with past deals involving the Asian giant, under the terms of the loan deal with Costa Rica, China gets to choose the construction company, and they selected China Harbour Engineering Company Ltd. (CHEC).

However, last week, Citizen Action Party lawmaker Manrique Oviedo said that CHEC is an offshoot of the merger between the Communications Construction Company Limited (CCCC) and other companies. In 2009, the World Bank barred CCCC from its projects for having engaged in alleged acts of fraud and corruption in the Philippines.

The company’s contract in Costa Rica was signed without a green light from Costa Rica’s Comptroller General’s Office, according to Oviedo, and approval “was granted in only seven days.”

The last step before the project moves forward is a yes vote by the Legislative Assembly.

Oviedo also said the Chinese loan is overpriced by $70 million when compared to a recent similar contract between the National Roadway Council and a Mexican firm.

Public Works and Transport Vice Minister José Chacón Laurito last week told the daily La Nación that his ministry, MOPT, “was unaware” of CCCC’s appearance on the World Bank’s blacklist.

“Regardless of the World’s Bank notice, the country can sleep peacefully, as we signed a ‘shielded’ commercial contract,” said Chacón, referring to promised daily inspections and oversight by an independent international firm.

MOPT also will rely on inspections by experts from the Technology Institute of Costa Rica and the National Laboratory of Materials and Structural Models of the University of Costa Rica (LANAMME), the vice minister said.

The PAC lawmaker accused China of attempting to impose conditions for dispute settlements, noting that “the rights and obligations of the parties shall be governed and met under the laws of China,” according to the contract. That, Oviedo said, “would mean surrendering the country’s sovereignty.”

Chacón said those provisions apply only to the terms of the loan, and the actual project would be subject to a commercial contract between Costa Rica and the construction company.

“We will not have to go to Beijing to resolve any [possible] disputes, but to Washington, to a World Bank commission that would serve as a referee,” Chacón said.

On Tuesday, PAC presidential candidate Luis Guillermo Solís urged President Laura Chinchilla to form of a commission to review the loan prior to sending it to the Legislative Assembly for approval.

He suggested the commission be composed of members of LANAMME, the Costa Rican Engineers’ Association, the Costa Rican Chamber of Construction, the Comptroller General’s Office, the Attorney General’s Office and the Ombudsman’s Office.

Chinchilla dismissed the idea, saying, “The only commission needed is the one composed of 57 members of the Legislative Assembly, who will evaluate the contract.”

At the end of her weekly Cabinet meeting on Tuesday, Chinchilla said she was concerned the Chinese government would stop cooperating with Costa Rica due to the constant bickering of “some people” over joint projects involving the Asian giant. 

Trending Now

Colombia Quake Death Toll Passes 200 as Rescue Efforts Intensify

The death toll from the powerful earthquake that struck western Colombia yesterday has climbed above 200 as rescue crews continue searching collapsed buildings and...

Why Daniel Ortega Is Moving to Eliminate Nicaragua’s Opposition

"They will have no choice but to bark," Nicaraguan President Daniel Ortega shot back in response to the wave of international condemnation sparked by...

Costa Rica Looks to Ukraine for Drone Technology in Security Fight

Ukrainian President Volodymyr Zelensky and Costa Rican President Laura Fernández exchanged invitations for official visits during a phone call yesterday, as the two leaders...

Where You Can Fly Nonstop to Costa Rica This High Season

Fourteen new or expanded nonstop routes reach Costa Rica between October and March, including Breeze Airways' debut and the first-ever direct flights from Poland. One heavily promoted route was cancelled before it ever flew. Full list with dates and days.

Powerful Earthquake Strikes Colombia’s Pacific Coast

A powerful earthquake struck western Colombia on Monday morning, damaging buildings in the Pacific department of Chocó and sending office workers into the streets...

Fonseca and Cerúndolo Drawn Into the Same Cincinnati Quarter

The Cincinnati Open draw placed Fonseca and Cerúndolo in the same quarter, with Sinner and Alcaraz both absent through injury.

Gunmen Storm Costa Rica Hospital and Kill Patient in Nicoya

Two masked gunmen forced their way into a public hospital in Guanacaste early Saturday and shot a patient to death as he lay on...

Costa Rica Targets Luxury Car Tax Evasion After Ferrari Case

A Ferrari declared for a fraction of its real value has become the poster case for a customs loophole that Costa Rica's vehicle importers...

Costa Rica’s Route 32 Reopens After Landslide Cleanup

Update, Friday, August 7: Route 32 is open again. You can drive between the Central Valley and Limón normally. The detours below are no...
L. Arias
L. Arias
Reporter | The Tico Times |
🌴 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