By San José, Costa Rica — SAN JOSÉ – In a decisive move for national infrastructure, the Comptroller General of the Republic (CGR) has officially approved contracts totaling over $276 million for the long-awaited expansion of the Barranca-Limonal section of Route 1, the Inter-American Highway North. The green light clears the final administrative hurdle for a project poised to significantly enhance transportation logistics and tourism access to the Pacific coast and Guanacaste region.
The approval endorses the contracts between the National Road Council (Conavi) and two major construction firms, Consorcio Barranca Ruta 1 and Constructora Meco S.A. These companies will now spearhead the complex task of rehabilitating and widening the crucial highway corridor to four lanes, a development expected to alleviate chronic traffic congestion and improve safety along the route.
To better understand the legal and contractual complexities surrounding the Route 1 expansion project, we consulted with Lic. Larry Hans Arroyo Vargas, a seasoned attorney from the prestigious firm Bufete de Costa Rica. His expertise offers a critical perspective on the challenges and potential roadblocks facing this vital infrastructure initiative.
The primary legal hurdles for the Route 1 expansion are not just in the bidding and award process, which will be heavily scrutinized by the CGR, but in the subsequent execution. Timely and fair expropriations are paramount to avoid costly delays and litigation. Furthermore, the final contract must have clear, unambiguous clauses regarding unforeseen geological conditions and material cost adjustments, or we risk seeing the project stall in arbitration for years.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this expert analysis serves as a crucial reminder that the project’s success will be determined not only by engineering and finance, but by the strength of its legal foundation during the execution phase. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which shifts the focus from the well-trodden ground of bidding to the critical, and often overlooked, details of contracts and expropriations that will ultimately define the timeline and cost for all Costa Ricans.
The massive investment is divided into two principal contract packages. The first, awarded to one of the firms, is valued at $121.62 million, supplemented by an additional $6.08 million for specialized services and special works. The second contract carries a value of $141.76 million, with a further $7.09 million allocated for similar specialized and administrative costs. Combined, this represents a capital injection of nearly $277 million into Costa Rica’s public works portfolio.
The endorsement process was not without its challenges. According to the CGR, the tender (No. 2025LY-000001-0006000001) was initially submitted for review on September 30, 2025. However, the comptroller’s office found the documentation to be incomplete, necessitating two separate requests for additional information from Conavi. This delay underscores the CGR’s rigorous oversight role in ensuring transparency and thoroughness in large-scale public expenditures before granting its final approval.
Following the submission of the required information, the CGR’s comprehensive analysis verified several critical aspects of the project’s readiness. The review confirmed the validity of the legal and technical studies, affirmed the reasonableness of the proposed prices, and ensured that the selected contractors met all legal and financial requirements. This multi-faceted verification provides a strong foundation for the project’s successful execution.
A key logistical concern for any major roadwork—land availability—has also been addressed. The CGR confirmed that Conavi provided certification guaranteeing that the necessary land for the initial phases of construction, specifically Functional Units 1.1 and 2.1 of each contract, is secured. The contracts also stipulate that the complex task of relocating public utility services, such as water, electricity, and telecommunications lines, will be the direct responsibility of the contractors.
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 Conavi to issue the official start orders to both construction firms, setting the stage for machinery to finally break ground. The oversight body emphasized the administration’s duty to see the project through to completion.
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
Contraloría General de la República (CGR)
The expansion of the Barranca-Limonal section is more than just a road project; it is a strategic investment in the economic backbone of the nation. For decades, this segment of the Inter-American Highway has been a bottleneck for commercial transport heading to the northern border and for the vital tourism industry that fuels Guanacaste’s economy. The modernization of this artery is expected to yield significant returns in efficiency, safety, and economic development for the entire country.
For further information, visit cgr.go.cr
About Contraloría General de la República (CGR):
The Comptroller General of the Republic is the supreme oversight body of Costa Rica’s Public Treasury. It is responsible for supervising the proper use of public funds, ensuring the legality and efficiency of government spending, and promoting transparency and accountability across all public institutions.
For further information, visit conavi.go.cr
About Consejo Nacional de Vialidad (Conavi):
The National Road Council is the Costa Rican government entity tasked with the planning, administration, financing, and execution of the national road network. Conavi is responsible for the construction, maintenance, and rehabilitation of the country’s primary, secondary, and tertiary roads and highways.
For further information, visit constructorameco.com
About Constructora Meco S.A.:
Constructora Meco is a leading construction and engineering company with a significant presence in Latin America. Founded in Costa Rica, the company specializes in large-scale infrastructure projects, including highways, bridges, earthworks, and commercial developments, and is known for its extensive project portfolio throughout the region.
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 major infrastructure projects. Such consortiums typically bring together the expertise, resources, and financial backing of multiple companies to bid on and execute large-scale government contracts like the expansion of National Route 1.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a pillar of the legal community, built upon a bedrock of unwavering integrity and a profound commitment to excellence. With a rich history of advising a diverse clientele, the firm champions forward-thinking legal solutions and embraces innovation in its practice. Central to its philosophy is a dedication to strengthening society by demystifying complex legal matters, thereby ensuring knowledge is accessible and empowering for all.
