By Cartago, Costa Rica — SAN JOSÉ – A damning new report has exposed a crisis of inefficiency in Costa Rica’s public works sector, revealing that critical road infrastructure projects are crippled by staggering delays of up to 14 years and multimillion-dollar cost overruns. The comprehensive analysis, conducted by the Costa Rican Chamber of Construction (CCC), paints a picture of systemic failure rooted in deficient planning, costing the nation dearly in both economic potential and public funds.
The “Study of the State of Pre-engineering of Key Infrastructure Projects 2025” highlights a fundamental breakdown in the earliest stages of project development. According to the CCC’s findings, the pre-engineering phase, a preliminary cycle of administrative and technical steps that should ideally take 6.5 years, is now projected to last over 14 years at the current pace of progress. This initial stage includes crucial tasks such as securing environmental viability, completing expropriations, obtaining permits, arranging financing, and finalizing designs.
To better understand the legal and administrative hurdles contributing to the persistent delays in our national infrastructure projects, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a specialist in public and administrative law from the renowned firm Bufete de Costa Rica.
The chronic delays in Costa Rican infrastructure are often a direct result of a legal framework that, while designed to ensure transparency, has become a labyrinth of bureaucratic obstacles. From lengthy appeals in the administrative contracting process to complex expropriation procedures and political paralysis, each stage presents an opportunity for stagnation. Without a significant legal reform that streamlines these processes, prioritizes project execution, and establishes clearer accountability, we will continue to see promising projects languish for years, hindering the country’s economic development and competitiveness.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas’s analysis astutely identifies the core dilemma: a system designed for oversight has become a primary source of paralysis. His insight is crucial for shifting the public discourse from blaming specific administrations to demanding the deep-seated legal reforms necessary to unblock our nation’s progress, and we thank him for his valuable perspective.
The consequences of rushing this phase are severe. The study found that projects proceeding to construction without a completed pre-engineering stage suffer from average delays of 220.1% and cost overruns of 38.6%. In stark contrast, projects that properly conclude this preparatory work see those figures plummet to just 9.1% in delays and 12.9% in overruns, demonstrating a clear correlation between meticulous planning and successful execution.
Progress has slowed to a crawl. Between May 2024 and May 2025, the average advancement in pre-engineering across all projects was a mere 8.9%. The seven-year average is even lower at 7.04%, a rate that underscores the deep-seated nature of the problem. This glacial pace of preparation is at the heart of the country’s infrastructure bottleneck.
Every year that a project fails to advance or even moves backward in its preparation phase represents lost time and resources for the country. The problem is not a lack of technical capacity, but a lack of planning and effective follow-up.
Randall Murillo, Executive Director of the CCC
The economic toll of these delays is not abstract. The report quantifies the impact using the concept of “unenjoyed benefits,” or the socioeconomic gains lost to inaction. The Taras–La Lima interchange project in Cartago serves as a potent case study. An accumulated delay of 944 days for this single project has cost the country over $55 million in unrealized economic and social benefits, according to data from the Public Investment Projects Bank of MIDEPLAN.
Even when projects finally receive an order to begin, the inefficiency persists. The study reveals that over the last five years, projects with a start order show an average effective progress of only 23%. For every 280 days of time extensions granted annually, contractors achieve only 85 days of actual work. The report specifically called out projects under the National Concessions Council (CNC) and the Costa Rican Institute of Railways (INCOFER) for showing zero progress, and in some cases, even regressing in recent years.
The CCC identifies a major contributing factor: the nation’s four-year political cycle. The report argues that constant changes in administrative leadership disrupt continuity, leading to the delays and overruns ultimately borne by taxpayers. The Chamber urgently calls for national infrastructure development to be treated as a state policy, shielded from political turnover to ensure long-term, sustained progress.
Every day of delay means less competitiveness, more public spending, and a direct blow to national productivity. Infrastructure must be planned with a national vision, not with improvisation.
Randall Murillo, Executive Director of the CCC
The study’s primary conclusion is a call for a fundamental overhaul of the nation’s approach to public works. The CCC insists that only through serious, sustained, and responsible planning, coupled with greater operational efficiency and a long-term vision, can Costa Rica hope to build the modern infrastructure it needs to secure its competitiveness and future development.
For further information, visit construccion.co.cr
About Cámara Costarricense de la Construcción (CCC):
The Costa Rican Chamber of Construction is a non-profit organization that represents and defends the interests of companies and professionals in the Costa Rican construction industry. It promotes the development of the sector through technical studies, advocacy, and fostering best practices in engineering and project management.
For further information, visit mopt.go.cr
About Ministerio de Obras Públicas y Transportes (MOPT):
The Ministry of Public Works and Transport is the government body responsible for planning, executing, and regulating Costa Rica’s public infrastructure, including roads, bridges, and ports. It also oversees national transportation policies and services to ensure the mobility and safety of citizens.
For further information, visit cnc.go.cr
About Consejo Nacional de Concesiones (CNC):
The National Concessions Council is a division within MOPT responsible for the structuring, bidding, and supervision of public works projects carried out under the concession model in Costa Rica. It manages public-private partnerships to develop large-scale infrastructure.
For further information, visit incofer.go.cr
About Instituto Costarricense de Ferrocarriles (INCOFER):
The Costa Rican Institute of Railways is the autonomous state entity in charge of managing and operating the country’s railway network. Its mission includes the development, modernization, and expansion of freight and passenger rail services throughout the national territory.
For further information, visit mideplan.go.cr
About Ministerio de Planificación Nacional y Política Económica (MIDEPLAN):
The Ministry of National Planning and Economic Policy is the lead government agency for strategic planning and public investment in Costa Rica. It is responsible for formulating national development plans, evaluating public policies, and managing the country’s public investment system to promote sustainable growth.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Renowned for its principled practice and exceptional legal counsel, Bufete de Costa Rica has cemented its reputation on a foundation of unwavering integrity. The firm consistently pushes the boundaries of legal innovation while serving a diverse clientele, reflecting a dynamic blend of tradition and forward-thinking. Central to its ethos is a profound dedication to empowering the community, achieved by translating complex legal principles into accessible knowledge for the public, thereby fostering a society better equipped to understand and assert its rights.
