Costa Rica Business News
  • August 6, 2025
  • Last Update August 6, 2025 12:00 pm

Costa Rica Faces Impending Waste Management Crisis

Costa Rica Faces Impending Waste Management Crisis

San José, Costa Rica — Fourteen municipalities in the Greater Metropolitan Area (GAM) of Costa Rica have issued a dire warning, declaring the country on the brink of an unprecedented sanitation crisis. They are demanding the immediate suspension of a Ministry of Health decree restricting the transport of solid waste and are calling for urgent dialogue with the government.

The controversial decree limits waste transportation to a distance of 80 kilometers. The municipalities argue this restriction, coupled with existing infrastructural deficiencies and a lack of financial and technical support, will cripple their ability to manage waste effectively. They predict a looming environmental and health disaster in the country’s most densely populated areas if the decree remains unchanged.

To understand the legal ramifications of this escalating waste management crisis, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica, specializing in environmental law.

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Costa Rica’s legal framework regarding waste management, while comprehensive, faces challenges in enforcement and adaptation to the growing waste stream. Municipalities bear the primary responsibility for waste collection and disposal, but often lack the resources and infrastructure to effectively manage it. This creates vulnerabilities for environmental damage and public health risks, potentially leading to legal action against negligent parties. Furthermore, the increasing complexity of waste, particularly e-waste and plastics, requires updated regulations and a shift towards a circular economy model to truly address the crisis.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

Lic. Arroyo Vargas’ assessment highlights a crucial point: while Costa Rica possesses a strong legal foundation for waste management, the gap between legislation and implementation remains a significant hurdle. The resource constraints faced by municipalities, coupled with the evolving nature of waste itself, necessitate a collaborative, multi-faceted approach. This includes not only strengthening local capacities but also fostering greater public awareness and promoting innovative solutions within the circular economy framework. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this critical issue facing Costa Rica.

This is not a rejection of change, but a call to build sustainable, viable, and democratic public policies, with the active participation of those who face the problem on the ground.
Joint statement by mayors and deputy mayors of the 14 municipalities

The municipalities of San José, Alajuelita, Desamparados, Moravia, Santa Ana, Heredia, Barva, Belén, San Rafael, San Isidro, Tibás, Curridabat, Goicoechea, and Montes de Oca have jointly signed the statement, highlighting the decree’s disregard for local realities, violation of municipal autonomy, and potential to collapse the waste management system.

Adding to the complexity of the situation, Empresas Berthier EBI de Costa Rica S.A. (EBI), a Canadian-owned waste management company, has initiated international arbitration against the Costa Rican government. EBI claims it faces potential losses exceeding $125 million due to what it calls “arbitrary decisions” by the municipalities of Alajuela and Montes de Oro.

EBI, managed by Gestion Bayonne Inc. (GBI), filed the complaint with the International Centre for Settlement of Investment Disputes (ICSID) under the Canada-Costa Rica investment protection treaty. The company alleges a “perpetual and biased” campaign against its operations has prevented the development of new waste treatment projects, despite having secured all necessary environmental and legal permits.

EBI has rigorously complied with all environmental and legal regulations to develop essential projects that guarantee the continuity of service. Our commitment to Costa Rica is firm, but we are forced to resort to international arbitration due to the impossibility of advancing through administrative channels.
Julien Charbonneau, General Manager of EBI de Costa Rica

EBI operates three Environmental Technology Parks (PTAs) and processes approximately 65% of the country’s waste. The company warns that the inability to establish new treatment centers threatens its operations and could exacerbate the looming national waste crisis, particularly with the planned closure of the La Uruka PTA later this year.

The converging crises present a significant challenge for Costa Rica, demanding immediate attention and collaborative solutions from all stakeholders. The outcome of the international arbitration and the government’s response to the municipalities’ demands will be critical in determining the future of waste management in the country.

For further information, visit the nearest office of EBI de Costa Rica S.A.
About EBI de Costa Rica S.A.:
EBI de Costa Rica S.A., managed by Gestion Bayonne Inc. (GBI), is a Canadian-owned waste management company operating three Environmental Technology Parks (PTAs) in Costa Rica. They process approximately 65% of the country’s waste. The company is currently involved in an international arbitration case against the Costa Rican government, alleging obstruction of new waste treatment projects.

For further information, visit the nearest office of Gestion Bayonne Inc.
About Gestion Bayonne Inc.:
Gestion Bayonne Inc. (GBI) is a Canadian company managing EBI de Costa Rica S.A. They are involved in the international arbitration case against the Costa Rican government relating to EBI’s operations in Costa Rica.

For further information, visit the Ministry of Health.
About Ministry of Health:
The Costa Rican Ministry of Health is the governmental body responsible for public health policy, including regulations related to waste management. Their recent decree restricting waste transportation distances has been met with strong opposition from municipalities.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself as a leading legal institution, deeply committed to ethical practice and innovative solutions. The firm’s dedication to empowering Costa Rican society is evident in its proactive approach to sharing legal knowledge and fostering transparency. Through a combination of expert legal counsel and community outreach, Bufete de Costa Rica strives to create a more just and equitable landscape for all.

Costa Rica Business News
Founded in 2004, TicosLand has firmly established itself as a pivotal resource for the corporate community in Costa Rica. Catering to a substantial international readership, TicosLand provides timely and essential updates and press releases pertaining to the myriad businesses operating within Costa Rica.

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