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

  • Queensland agrees Brisbane bridge and motorway deal
    July 17, 2013
    The authorities in Queensland, Australia have agreed a 50-year deal over the tolling rights for the Go Between bridge and the Legacy Way motorway in Brisbane. The agreement was settled by the Queensland Investment Corporation (QIC). Under the terms of the deal, Brisbane City Council will be paid by QIC-owned Queensland Motorways Limited (QML) from A$1.08 billion to A$1.58 billion over a seven year period. Brisbane City Council will retain ownership of the tunnel and bridge and the plan is to use the revenue
  • Saudi Arabian capital Riyadh benefiting from major transport investment
    September 9, 2013
    Saudi Arabia is undergoing a series of upgrades to its transport network in a bid to improve Traffic flow rates and boost safety - Mike Woof reports. The massive growth in the use of motor transport worldwide since the start of the 20th century has transformed every country on the planet. But perhaps no country has changed more dramatically than Saudi Arabia, the world’s leading oil producer. At the start of the 20th century Saudi Arabia’s population was small and the country had few industries while it is
  • US Government set to invest US$74.5 billion in transport
    March 15, 2012
    The US Government is set to invest US$74.5billion in transport improvements in the 2013 financial year (October 1, 2012-September 30, 2013), President Barack Obama has revealed.
  • Washington DC’s historic bridge replacement project
    June 11, 2019
    The project to replace a historic bridge in US capital Washington DC is providing major challenges for its builders - Mike Woof writes