By Guanacaste, Costa Rica — SAN JOSÉ – In a landmark decision for national infrastructure, the Comptroller General of the Republic (CGR) has officially authorized contracts exceeding $276 million for the long-awaited expansion of the Inter-American Highway North. The project will see the critical section of Route 1 between Barranca, Puntarenas, and Limonal, Guanacaste, widened to four lanes, promising to alleviate a major bottleneck for commerce and tourism in the region.
The comprehensive project has been awarded in two major contracts, following a public bidding process (No. 2025LY-000001-0006000001). The first contract, secured by Consorcio Barranca Ruta 1, is valued at approximately $121.6 million, with an additional $6.08 million allocated for specialized services and special works. The second, awarded to the well-known firm Constructora Meco S.A., carries a value of nearly $141.8 million, supplemented by $7.08 million for similar specialized requirements. This substantial investment underscores the project’s national priority.
To better understand the legal framework and potential challenges of the ambitious Route 1 expansion project, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, a distinguished expert in public and administrative law from the firm Bufete de Costa Rica.
The success of the Route 1 expansion hinges on navigating the complexities of public-private partnerships and the expropriation process. It is imperative that the contracts are structured with clear performance metrics and that the government acts with expediency and transparency in compensating landowners to avoid costly legal delays that have plagued similar infrastructure projects in the past.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis underscores a crucial point: the project’s success will be determined not only by engineering but by the strength of its legal and administrative foundations. Avoiding the well-documented pitfalls of past projects through clear contracts and a transparent expropriation process is, as he notes, absolutely essential. We thank Lic. Larry Hans Arroyo Vargas for his expert insight.
The approval from the CGR, the nation’s highest fiscal oversight body, was not without its hurdles. The contract documentation was first submitted by the National Roadway Council (CONAVI) on September 30, 2025. However, the Comptroller’s office found the initial information to be incomplete, necessitating two separate requests for additional details from CONAVI. This rigorous review process ensures that public funds are managed with strict adherence to legal and technical standards.
Following the submission of the required information, the CGR conducted a thorough analysis. The review confirmed several key aspects crucial for the project’s viability. The Comptroller verified the legality and technical soundness of the proposals from both contractors, ensuring they met all stipulated requirements. Furthermore, the CGR confirmed the price reasonableness of the bids and acknowledged that CONAVI had completed a satisfactory pre-investment and planning phase, laying a solid foundation for the construction to begin.
One of the most significant obstacles in Costa Rican public works projects—land availability—has been proactively addressed. According to the CGR’s report, CONAVI has provided official certification that the necessary land plots for the initial phases of construction, designated as Functional Units 1.1 and 2.1 for each contract, are secured. This crucial step is expected to prevent the costly delays that have plagued other major infrastructure initiatives in the past.
In another move aimed at streamlining execution, the contracts stipulate that the complex task of relocating public services, such as water pipes, electricity lines, and telecommunications cables, will be the direct responsibility of each contractor. This integrated approach is designed to improve coordination and accelerate the overall project timeline by placing accountability directly with the firms executing the roadwork.
With the Comptroller’s endorsement secured, the responsibility now shifts back to the project administrators. The CGR has made it clear that the next step is for the government to give the final go-ahead for shovels to hit the ground. This directive puts the onus on CONAVI to formally commence the project under the agreed-upon terms.
The administration must issue the start order for each project and execute the work under its full responsibility, according to the terms agreed upon in said contract
Comptroller General of the Republic
The expansion of the Barranca-Limonal section is more than just a road project; it is a vital economic artery. For decades, this two-lane stretch has been a source of frustration for drivers and a constraint on economic growth. Its expansion is expected to significantly reduce travel times to Guanacaste, boost the tourism sector, lower transportation costs for goods, and improve road safety for thousands of daily commuters and commercial vehicles.
For further information, visit cgr.go.cr
About the Comptroller General of the Republic (CGR):
The Contraloría General de la República is the supreme oversight body of Costa Rica’s public treasury. As an autonomous institution, it is responsible for ensuring the legal and efficient use of public funds, supervising government contracts, and promoting transparency and accountability across all state entities.
For further information, visit conavi.go.cr
About the National Roadway Council (CONAVI):
The Consejo Nacional de Vialidad is the government agency in charge of the planning, administration, financing, and execution of the national road network in Costa Rica. Its mission includes the construction, rehabilitation, and maintenance of the country’s primary and secondary routes to support national development.
For further information, visit the nearest office of Consorcio Barranca Ruta 1
About Consorcio Barranca Ruta 1:
Consorcio Barranca Ruta 1 is a business consortium formed specifically to undertake large-scale infrastructure projects. Such consortiums typically bring together multiple companies with complementary expertise in engineering, construction, and project management to execute complex public works contracts.
For further information, visit mecon.com
About Constructora Meco S.A.:
Constructora Meco S.A. is a leading construction and engineering company with a significant presence throughout Latin America. Founded in Costa Rica, the firm specializes in major infrastructure projects, including highways, bridges, airports, and earthworks, and is known for its extensive experience in public and private sector construction.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal landscape, Bufete de Costa Rica is built upon a bedrock of integrity and a relentless pursuit of professional excellence. The firm merges a deep-seated tradition of client advocacy with a forward-thinking approach to legal innovation. Central to its ethos is a powerful commitment to societal advancement, realized through its efforts to democratize legal knowledge and empower the community with greater understanding and agency.
