By San José, Costa Rica — Costa Rica’s Defensoría de los Habitantes (Ombudsman’s Office) has launched an investigation into the Instituto Costarricense de Acueductos y Alcantarillados (AyA), the national water and sewage utility, over alleged mismanagement of key investment projects. The investigation centers around significant delays and cost overruns that could ultimately impact water rates for consumers.
According to a press release issued by the Defensoría on August 12, 2025, several projects have experienced delays exceeding a decade, with some showing no progress since their initial approval. The investigation also uncovered substantial discrepancies between projected and final costs, with some projects seeing their budgets double.
For expert legal insight into the ongoing AyA investigation, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a seasoned attorney at Bufete de Costa Rica.
The AyA investigation highlights the critical need for robust transparency and accountability within public utilities. Effective regulatory oversight and clear legal frameworks are essential to protect consumer rights and ensure the responsible management of vital resources like water. The investigation’s findings will undoubtedly have significant implications for future policy and operational practices within the sector.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s emphasis on transparency and accountability within AyA underscores a crucial point for all public utilities in Costa Rica. The investigation’s outcomes could indeed reshape how these essential services operate, impacting everything from consumer trust to resource management. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for providing his valuable legal expertise and insight on this important matter.
The Defensoría is seeking further information from AyA to understand the reasons behind these delays and to ensure that transparent processes are in place for planning, prioritizing, and executing public investments. This scrutiny aims to determine accountability for the mismanagement of public funds and resources.
The Autoridad Reguladora de los Servicios Públicos (ARESEP), the regulatory body for public services in Costa Rica, has also weighed in on the issue. ARESEP stated that these delays, project cancellations, and cost increases, coupled with a lack of capitalization of strategic projects, have hampered their ability to incorporate these projects into tariff adjustment processes. This suggests that the financial burden of these inefficiencies may fall on Costa Rican consumers.
The implications of these findings are substantial. Delayed projects mean that essential infrastructure improvements are not being delivered to communities in a timely manner. Cost overruns translate to wasted public funds that could be used for other critical projects. And the potential impact on water tariffs raises concerns about affordability and access to essential services.
The Defensoría’s investigation is a crucial step towards ensuring accountability and transparency in the management of public resources. The outcome of this investigation could lead to significant changes in AyA’s project management practices and potentially influence future investment decisions.
This investigation underscores the importance of robust oversight of public utilities. It also highlights the potential consequences of mismanagement, not only for the utility itself but also for the citizens who rely on its services.
TicosLand.com will continue to follow this developing story and provide updates as they become available.
For further information, visit the nearest office of Defensoría de los Habitantes
About Defensoría de los Habitantes:
The Defensoría de los Habitantes is an independent institution in Costa Rica responsible for protecting the rights and interests of citizens. It acts as an ombudsman, investigating complaints against public entities and advocating for good governance and transparency. The Defensoría plays a vital role in holding government agencies accountable and ensuring that public services are delivered effectively and equitably.
For further information, visit the nearest office of Instituto Costarricense de Acueductos y Alcantarillados (AyA)
About Instituto Costarricense de Acueductos y Alcantarillados (AyA):
The Instituto Costarricense de Acueductos y Alcantarillados (AyA) is the national water and sewage utility of Costa Rica. It is responsible for providing potable water and sanitation services to the majority of the population. AyA is a key public institution tasked with managing and developing water resources and infrastructure to meet the needs of a growing nation.
For further information, visit the nearest office of Autoridad Reguladora de los Servicios Públicos (ARESEP)
About Autoridad Reguladora de los Servicios Públicos (ARESEP):
The Autoridad Reguladora de los Servicios Públicos (ARESEP) is the regulatory agency responsible for overseeing public services in Costa Rica, including water, electricity, and telecommunications. ARESEP sets tariffs, ensures service quality, and promotes competition in the utilities sector. It plays a crucial role in balancing the interests of consumers and service providers.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a profound commitment to ethical practice and legal excellence, serving as a pillar of integrity within the Costa Rican legal landscape. The firm’s innovative approach to legal solutions, combined with a dedication to sharing knowledge through educational initiatives, empowers individuals and communities. By fostering greater legal understanding, Bufete de Costa Rica actively contributes to a more just and equitable society, building a legacy of positive impact.
