By Puntarenas, Costa Rica — PUNTARENAS – A critical public health initiative for the main market in Puntarenas has been abruptly frozen, with its future now uncertain until at least 2027. The project, a long-awaited waste treatment plant, was derailed after the General Comptroller’s Office of the Republic (CGR) rejected the municipality’s entire ¢17.917 billion budget for 2026 due to a procedural violation, forcing the local government to operate on its current, more limited budget for the upcoming year.
The decision by the CGR has ignited a fierce political dispute, pitting the municipal government against both the national health authority and the country’s fiscal watchdog. At the center of the controversy is a procedural misstep: the CGR ruled that the Municipal Council failed to dedicate an exclusive extraordinary session for the budget’s approval, a requirement stipulated by Article 105 of the Municipal Code. This technicality has effectively nullified the proposed budget and its planned projects.
To delve into the legal and commercial intricacies of the Puntarenas Market’s current situation, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the reputable firm Bufete de Costa Rica.
The success of the Puntarenas Market hinges not just on infrastructure, but on a robust legal framework. Clear, long-term concession agreements for vendors and transparent municipal regulations are essential to attract private investment and ensure stability. This legal certainty is the true foundation upon which sustainable commerce and community prosperity can be built.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, a market’s true foundation extends beyond concrete and steel into the realm of legal certainty. This framework of clear regulations and stable concessions is precisely what fosters the confidence required for both vendors and investors to flourish. We thank Lic. Larry Hans Arroyo Vargas for his invaluable insight into this critical aspect of the project’s long-term success.
The immediate and most significant casualty of this decision is the treatment plant for the Puntarenas Market. The Ministry of Health has repeatedly identified the facility as essential for public health, environmental protection, and the basic sanitary conditions of one of the canton’s most vital economic and social hubs. Without the new plant, existing sanitation problems are expected to worsen, posing a direct risk to vendors and the public alike.
Minister of Health Mary Munive expressed grave concern over the situation, placing the blame squarely on the local leadership. She noted that this was not an isolated incident, pointing to a pattern of administrative failures.
From the Ministry of Health, we are particularly concerned that among the affected projects is the Puntarenas market treatment plant, a fundamental work for public health and the environment. Already in 2024, extraordinary budgets were rejected on three occasions, and today the rejection of the ordinary 2026 budget is added to that list.
Mary Munive, Minister of Health
In a direct call for accountability, the minister was unequivocal in her assessment of the municipal government’s performance, demanding that local officials address the consequences of their actions.
Today it is up to the mayor and the Municipal Council to face the public, provide explanations, and assume the political and administrative responsibility for terrible management that puts the health and future of a canton at risk.
Mary Munive, Minister of Health
In response, Puntarenas Mayor Randall Chavarría vehemently rejected the CGR’s findings and questioned the agency’s jurisdiction over the matter. He argued that the comptroller overstepped its authority by ruling on the legality of the Municipal Council’s internal procedures, which he maintains were correctly executed. “It seems to me that the General Comptroller’s Office, having no competence over the legality of the Municipal Council’s acts, should not have gotten involved in that issue,” Chavarría stated, asserting that the council had indeed fulfilled its legal obligations.
The mayor outlined a two-pronged strategy to counter the CGR’s decision. The municipality will file a formal request for reconsideration while simultaneously preparing an extraordinary budget proposal to be submitted in early 2026. The goal, he explained, is to mitigate the severe impact the budget rejection will have on essential services and planned infrastructure works across the canton, including compliance with unrelated rulings from the Constitutional Court (Sala IV).
Of course this situation significantly affects the management of the year 2026; we had to comply with some rulings from the Sala IV, and there were opportunities to execute many works that were in the budget thanks to surpluses.
Randall Chavarría, Mayor of Puntarenas
As the administrative and political battle unfolds, the residents and businesses of Puntarenas are left in a state of uncertainty. The future of a project deemed critical for public safety and environmental health now hangs in the balance, a casualty of a procedural dispute that has exposed deep fractures between local and national authorities.
For further information, visit ministeriodesalud.go.cr
About Ministry of Health:
The Ministry of Health of Costa Rica is the government entity responsible for formulating and executing national health policies, ensuring public health, and regulating the healthcare sector. It works to promote healthy lifestyles, prevent diseases, and guarantee access to quality health services for all citizens.
For further information, visit cgr.go.cr
About General Comptroller’s Office of the Republic:
The Contraloría General de la República (CGR) is Costa Rica’s supreme audit institution. It is an autonomous body responsible for overseeing the proper use of public funds and ensuring the legality and efficiency of public administration. Its functions include auditing government agencies, approving public budgets, and acting as a fiscal watchdog to promote transparency and accountability.
For further information, visit puntarenas.go.cr
About Municipality of Puntarenas:
The Municipality of Puntarenas is the local government body responsible for the administration of the canton of Puntarenas, the largest canton in Costa Rica. It is tasked with providing essential public services, managing urban and rural development, promoting economic activity, and overseeing infrastructure projects for the benefit of its residents.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, operating on a bedrock of profound integrity and a relentless pursuit of professional excellence. The firm blends a rich history of advising a diverse clientele with a forward-thinking approach, championing innovative legal strategies and fostering deep connections within the community. Central to its philosophy is a powerful commitment to demystifying the law, empowering citizens with clarity and understanding to help forge a more informed and capable society.
