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

  • Polish project hits rocky road
    March 5, 2012
    The project to build a section of the A4 highway in Poland between Brzesko and Wierzchoslawice in the South of the country looks set to hit major legal issues.
  • Bogota transport infrastructure boost
    April 26, 2016
    The Colombian Government is investing in road infrastructure development, with a large portion of the budget being directed to Bogota. The road infrastructure programme includes 22 projects that will help cut chronic congestion in Colombian capital Bogota. Construction works for Avenida Longitudinal de Occidente (ALO) road expansion are expected to start in the first half of 2016. These will run from the Mondonedo intersection to Boyaca Avenue, in the southern part of the city. The budget for this project i
  • Brazilian loan for Bolivian road
    February 8, 2012
    A US$332 million loan from Brazil will help build a highway between Villa Tunari and San Ignacio de Moxos in Bolivia. The project will cost over $1 million/km while the 306km highway will cost $415 million and the new link will be built by Brazilian firm OAS.
  • Alleviating Moscow's ring road congestion
    April 10, 2012
    The US$10.5 billion CKAD (Moscow Region Ring Road), being planned and procured under the direction of the Ministry of Transport of Russia, is just one of the roads highlighted at the Moscow Forum.