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

  • Irregularities found in Puerto Rico airport runway project
    July 31, 2015
    According to a report from Autoridad de los Puertos (AP), the state-owned company responsible for ports and airports in Puerto Rico, the companies hired to repave the runway at the Rafael Hernandez airport, in Aguadilla, have committed alleged irregularities and possible fraud. The two companies, Robles Asphalt and BTB Asphalt, have already been fined US$3.6 million for failures by the Federal Court which to be paid within a five-year period.
  • World Bank cancel US$1.2bn Padma Bridge loan
    July 6, 2012
    A loan worth US$1.20billion for the Padma Multipurpose Bridge project has been cancelled by the World Bank (WB). The decision was said to have been taken as the Bank was not satisfied with the actions taken by the Bangladeshi government in regards to corruption allegations involving the bridge contract. A major engineering and construction company is alleged to have made improper payments to Bangladeshi government officials in order to secure the bridge contract. The World Bank loan, signed In April last y
  • Kenya develops annuity road funding model
    May 8, 2015
    Kenya is introducing novel methods for funding its necessary road infrastructure development - Shem Oirere writes. Kenya has unveiled a new financing model for road construction and reviewed its design standards and construction methodologies, which forms part of a new strategy for the East African country. Under this new plan Kenya is planning to upgrade 10,000km of road, with these links featuring asphalt surfacing; the work being carried out over the next five years at a cost of US$2.8 billion. Despite t
  • Major highway improvement project on track in Colombia
    February 29, 2016
    In Colombia plans are now in hand for a major highway improvement project. Concesión Pacífico Tres is joint concession operator of the tolled links for Colombia’s major commercial regions connecting with the Pacific port hub. US firm Milbank, Tweed, Hadley & McCloy has provided advice to Colombian Concessionaire Concesión Pacífico Tres SAS and its sponsors, MHC Ingeniería y Construcción de Obras Civiles and Construcciones El Cóndor, and Costa Rica’s infrastructure company Constructora MECO. The advice was