Skip to main content

Costa Rica to replace Conavi with a National Infrastructure Institute

Amid concerns over the efficiency of Costa Rica’s highways agency Conavi, the authority has been given more time to provide details on expansion of Route 32, according to the La Republica newspaper. Conavi has been at loggerheads with the Treasury Inspector's Office which wants Conavi to move faster and authorise a contract for the expansion of road between Rio Frio and Limon granted to China Harbour Engineering Company. China Harbour has been requesting further details about the US$395 million projec
March 14, 2016 Read time: 2 mins
Amid concerns over the efficiency of Costa Rica’s highways agency 2538 Conavi, the authority has been given more time to provide details on expansion of Route 32, according to the La Republica newspaper.

Conavi has been at loggerheads with the Treasury Inspector's Office which wants Conavi to move faster and authorise a contract for the expansion of road between Rio Frio and Limon granted to China Harbour Engineering Company.

China Harbour has been requesting further details about the US$395 million project, including terms and conditions, payments, expropriations, relocation of public services and possible sanctions in the event of the project being suspended.

Meanwhile, the government has moved to replace Conavi with a new National Infrastructure Institute to boost public-private partnerships. According to the El Pais newspaper, the government has submitted a draft bill in the Legislative Assembly which will now go to consultation.

The new organisation will work closely with the Ministry of Public Works and Transport to plan infrastructure projects, issue technical and procurement guidelines and oversee the contractor performance.

Alongside the creation of the new organisation, the government will also replace the Public Transport Council with a new National Public Transport Authority.

In early March 2014, the government reportedly had to pay compensation worth $28.4 million for the cancellation of a highway concession package. Compensation related to the San José-San Ramón highway concession and was being paid to the Brazilian construction company OAS, according to a report at the time by Business News Americas.

This followed a legal dispute over the project and was around $10 million less than OAS originally claimed in compensation. The 30-year concession package was cancelled last year due to opposition. There were allegations of a conflict of interest in the award of the contract as well as complaints the proposed toll fees would be too high.

The project for the $524 million project to upgrade and widen the 58km section of highway was originally to have been complete within a 30 month period.

For more information on companies in this article

Related Content

  • Colombian surety insurers to benefit from new highway infrastructure projects
    October 11, 2013
    The Colombian government's recently unveiled infrastructure programme for highway construction over the next 10 years is tipped to raise demand for surety products owing to government contracts requiring surety insurance to protect public resources. Higher demand of these types of P&C insurance coverage will help insurers absorb their fixed costs, thereby improving underwriting results and reducing insurers' reliance on investment yields to sustain their profitability, Moody's has claimed in a report.
  • Minimising the problems of construction disputes
    September 30, 2013
    *Nigel Grout discusses methods for minimising the risk of potential legal issues in construction projects Disputes and the construction industry are synonymous with each other. In a climate of economic downturn, the prevalence of major disputes will continue to be high as parties are unwilling or not able to compromise to reach a settlement. According to the latest ‘Global Construction Disputes’ report by EC Harris, the global average value of a construction dispute in 2012 was nearly US$32 million.
  • Colombia's roads to recovery
    February 8, 2012
    Colombia's Ministry of Transport is suggesting that the Avenida Longitudinal de Occidente (ALO) road project in Bogota should be carried out by Colombian energy company Empresa de Energia de Bogota (EEB).
  • Switzerland increases fuel tax to create road maintenance fund
    September 21, 2015
    The Swiss government has created a fund for street and urban transport works to help ease what it says will be a deficit of around €1.26 billion each year up to by 2030. The fund will be created from a rise in road fuel tax from €0.27 to €0.33. Added money will come from a tax on electric vehicles due to start in 2020 and which will raise around €84 million a year, rising to around €275 million. The road maintenance fund also will receive around €366 million from taxes on imported cars and €320 mil