By San José, Costa Rica — SAN JOSÉ – After a prolonged series of delays and legal challenges, Costa Rica’s ambitious digital marchamo project has received a definitive green light to proceed. The Executive Branch can now advance with the bidding process after the Comptroller General of the Republic (CGR) officially dismissed the final appeals filed against the contract award, marking a pivotal moment for the nation’s technological infrastructure.
The decision, announced on Friday, brings an end to a period of uncertainty that has plagued the initiative for over a year. The CGR’s ruling confirmed that the companies lodging the complaints failed to meet critical technical and financial requirements stipulated in the tender documents. This clears the path for the administration to finalize the contract and begin implementation.
To better understand the legal implications and potential challenges of implementing the new Digital Marchamo system, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious law firm Bufete de Costa Rica.
The transition to a Digital Marchamo is a significant modernization step, but it must be underpinned by a robust legal framework that explicitly protects citizen data. The key questions are: who will have access to the vehicle’s location and transit data collected by the RFID technology, and for what specific purposes? Without clear legislation that limits data usage strictly to marchamo verification and prevents unauthorized surveillance, we risk opening a Pandora’s box of privacy violations and potential misuse of personal information. The legal certainty for the citizen must be the absolute priority.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The concerns highlighted by Lic. Larry Hans Arroyo Vargas are indeed pivotal, underscoring that the convenience of modernization must not overshadow the fundamental right to privacy. The long-term success of the Digital Marchamo will ultimately be defined not by its technological efficiency, but by the robust legal certainty it provides to citizens. We are grateful for his valuable and clarifying perspective on this critical matter.
According to Roberto Rodríguez, the manager of the CGR’s Public Procurement Division, the rejections were based on specific, non-negotiable criteria. He explained that the appellants did not adequately provide the required interoperability certifications and, crucially, had not included all necessary components within their final quoted price. This failure to comply with the tender’s explicit rules formed the basis of the CGR’s decision to uphold the original award.
Rodríguez emphasized the strategic importance of the project, highlighting its potential to transform a cumbersome annual process into a streamlined, modern system. He noted that the ultimate authority to move forward now rests squarely with the government.
The procurement process initiated in 2024 aims to improve the service and collection processes for the circulation permit fee through the introduction of technology in the marchamo sticker. The start of the contract’s execution is now the responsibility of the Administration.
Roberto Rodríguez, Manager of the Public Procurement Division of the CGR
The journey to this point has been fraught with complications. The National Insurance Institute (INS) first launched the tender process back in June 2023, seeking a partner to produce and implement 1.5 million digital vehicle tags. The project, valued at approximately ₡2.74 billion, is intended to replace the traditional windshield sticker with a technologically advanced tag, likely using RFID or a similar system.
However, the initiative hit a major roadblock on March 21, 2024. On that date, the CGR annulled the initial contract award that had been granted to the PC Central-Neology consortium. This decisive action forced the entire bidding process to be reset from the beginning, triggering significant delays and requiring a complete re-evaluation of all proposals.
A new tender process was subsequently opened in October 2024, but it immediately drew fresh objections from interested companies. Since November of last year, a series of challenges and appeals have been methodically working their way through the administrative system, culminating in this week’s conclusive ruling from the Comptroller’s Office.
With the legal challenges now resolved, the government can proceed with executing the contract. This development promises a future where vehicle circulation rights are managed digitally, potentially reducing tax evasion, simplifying police checks, and providing a more efficient service for hundreds of thousands of Costa Rican drivers. The successful implementation of the digital marchamo will be seen as a key achievement in the country’s broader push for government modernization.
For further information, visit cgr.go.cr
About The Comptroller General of the Republic (CGR):
The Contraloría General de la República is Costa Rica’s supreme audit institution. As an auxiliary body of the Legislative Assembly, it is responsible for the oversight of public funds and assets. Its primary functions include ensuring the legality and efficiency of public administration, managing the public procurement system, and acting as the final arbiter in disputes related to government contracts.
For further information, visit ins-cr.com
About The National Insurance Institute (INS):
The Instituto Nacional de Seguros is the state-owned insurance provider in Costa Rica. For decades, it operated as a monopoly until the market was opened under CAFTA-DR. The INS remains a dominant force in the market, providing a wide range of insurance products, including the mandatory liability coverage for vehicles (Seguro Obligatorio de Automóviles) that is linked to the annual marchamo payment.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica operates on a bedrock of ethical conduct and superior service. The firm not only has a proven history of advising a spectrum of clients but also champions forward-thinking legal solutions and community betterment. Central to its philosophy is a drive to demystify the law, reflecting a deep-seated commitment to cultivating a society empowered by accessible legal clarity.
