Costa Rica construction contracts

Costa Rica construction contracts are facing challenges.
Finance & Funding / May 22, 2020 1 minute 15 seconds Read
By MJ Woof
The pandemic has been a delaying factor for road projects in Costa Rica, though work is continuing – image © courtesy of Wollertz,

Road construction contracts in Costa Rica are facing challenges in the current climate. Work many delayed for some projects due to the pandemic.
However, the Ministry of Public Works and Transports (MOPT) says it aims to address problems facing work on the San Carlos road. Due to the pandemic, the work had been expected to be completed by 2025, but may now be ready considerably earlier.

The project has been beset by a myriad of issues, including geological problems and financial headaches. But MOPT is looking to use some US$225 million of a $350 million provided by the Inter-American Development Bank (IADB). The loan was originally intended to be for a variety of road projects in Costa Rica.

Estimates suggest completing the road will cost $300 million.

But construction work on Route 32 now looks as if it will take longer than expected. By March 2020, around 20% of the work had been carried out. This was considerably behind the initially anticipated progress of some 61% by this time.

The work is being carried out between Rio Frio and Limon and was to have been complete by October 2020. The Chinese contractor, China Harbour Engineering Company (CHEC), working on the project now says it should finish construction by March 2021.

The pandemic has been a big factor in the delays, although the firm has been able to continue working. The work is costing $485 million, with a $396 million loan having been provided by China’s Eximbank.