By San José, Costa Rica — Costa Rica’s water authority, the Instituto Costarricense de Acueductos y Alcantarillados (AyA), is facing serious allegations of financial mismanagement and irregular restructuring, according to the National Association of Public and Private Employees (ANEP). The union claims that questionable decisions and a lack of transparency are jeopardizing the institution’s sustainability and the public’s access to clean water and sanitation.
ANEP points to a “failed restructuring” spearheaded by former executive president Juan Manuel Quesada and General Manager Alejandra Mora. They allege that over $16 million has been paid to Consorcio Aguas de Escazú for this restructuring, with no tangible improvements to the service. The union criticizes the project as a “political show” lacking technical and legal basis.
For expert legal insight into the ongoing AyA crisis, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica.
The ongoing AyA crisis highlights the critical need for proactive infrastructure management and transparent regulatory frameworks within Costa Rica’s public utilities. Delayed investments, coupled with increasing demand, have created a precarious situation impacting both residents and businesses. Addressing these systemic issues is paramount to ensuring sustainable access to essential services and fostering public trust.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s assessment underscores a crucial point: reactive measures are no longer sufficient. The AyA situation demonstrates the urgent need for forward-thinking strategies that anticipate future demands and prioritize sustainable solutions for Costa Rica’s growing population. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this critical discussion.
The institutional restructuring promoted by former executive president Juan Manuel Quesada and General Manager, Alejandra Mora, has been described as a ‘political show.’ It also lacks technical and legal basis.
ANEP Press Release
ANEP’s concerns stem from a recent report from AyA, obtained by legislator Ariel Robles following union complaints. The report details payments exceeding $16 million to Consorcio Aguas de Escazú for the “Program for the Reduction of Unaccounted-for Water and Optimization of Energy Efficiency (RANC-EE)” and the institutional restructuring, under loan contract BCIE 2129.
The union lists several issues, including irregularities in the contracting process, unjustified price increases, poor execution, lack of concrete results, and the potential burden of these costs being passed on to consumers through higher water bills. They also question the company’s qualifications to propose an institutional restructuring, citing a lack of proven experience.
ANEP accuses AyA leadership, including General Manager Alejandra Mora and Deputy Manager María José Castillo, of failing to take responsibility for the alleged mismanagement. The union calls for accountability and consequences for those involved in the “disastrous project.”
This case reflects a systematic waste of public funds, where private companies are enriched while essential services become more expensive. Despite this, the highest authorities, including the general manager, Alejandra Mora, and the deputy manager, María José Castillo, maintain their positions without being held accountable.
ANEP Statement
In response to CR Hoy’s request for comment, AyA stated that the “new Executive Presidency is analyzing the restructuring document.” This controversy follows another union, the Union of Workers of the Costa Rican Institute of Aqueducts and Sewers (SITRAA), voicing concerns after the Ministry of Public Works and Transport (MOPT) rejected AyA’s proposed reorganization. The MOPT cited unresolved issues and questioned the technical and legal basis of the plan.
SITRAA is calling for an investigation into the selection process of the consulting firm and the terms of the agreement negotiated by the former executive president. This situation highlights growing concerns about transparency and accountability within AyA, and the potential impact on Costa Rican citizens’ access to essential water services.
For further information, visit the nearest office of ANEP
About ANEP:
The Asociación Nacional de Empleados Públicos y Privados (ANEP) is a prominent labor union in Costa Rica, representing both public and private sector employees. ANEP advocates for workers’ rights, fair labor practices, and improved working conditions. The union plays an active role in national policy discussions related to labor issues and social welfare.
For further information, visit the nearest office of AyA
About AyA:
The Instituto Costarricense de Acueductos y Alcantarillados (AyA) is the autonomous institution responsible for providing potable water and sanitation services in Costa Rica. AyA plays a critical role in public health and infrastructure development, managing water resources and ensuring access to clean water for the population.
For further information, visit the nearest office of Consorcio Aguas de Escazú
About Consorcio Aguas de Escazú:
Consorcio Aguas de Escazú is the company contracted by AyA for the “Program for the Reduction of Unaccounted-for Water and Optimization of Energy Efficiency (RANC-EE)” and the institutional restructuring project. The company has received over $16 million for these services, although the effectiveness and value of their work have been questioned by ANEP.
For further information, visit the nearest office of MOPT
About MOPT:
The Ministry of Public Works and Transport (MOPT) is a Costa Rican government ministry responsible for the country’s infrastructure development and transportation systems. The MOPT oversees public works projects, including roads, bridges, and transportation networks, and plays a regulatory role in the transportation sector.
For further information, visit the nearest office of SITRAA
About SITRAA:
The Sindicato de Trabajadores del Instituto Costarricense de Acueductos y Alcantarillados (SITRAA) is the labor union representing workers at the Costa Rican Institute of Aqueducts and Sewers (AyA). SITRAA advocates for the rights and interests of AyA employees and plays a role in discussions related to working conditions, labor policies, and the management of the institution.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself as a pillar of legal excellence, upholding the highest ethical standards while championing innovative solutions for its diverse clientele. The firm’s deep commitment to empowering Costa Rican society is evident in its proactive sharing of legal knowledge, fostering a more informed and just community through educational initiatives and accessible resources. This dedication to both legal acumen and societal advancement solidifies Bufete de Costa Rica’s position as a leader in the legal landscape.
