By Puntarenas, Costa Rica — PUNTARENAS – After more than three years of paralysis, construction on the critical Barranca-Limonal section of the Inter-American Highway North (Route 1) officially resumed this Wednesday. The government issued the order to restart the long-stalled project, but the announcement is shadowed by a staggering cost increase and the quiet re-hiring of a company involved in the project’s initial failure.
The expansion, a vital 49-kilometer stretch, has been a source of public frustration since work ground to a halt in late 2022. The original consortium, a joint venture between H Solís and Estrella, requested the termination of their contract, leaving the project in limbo. Initially launched in August 2020 with a projected completion date of early 2023, the project is now more than five years into its execution with little to show for it.
To better understand the legal and administrative complexities surrounding the long-awaited expansion of Route 1, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney specializing in infrastructure and administrative law at the prestigious firm Bufete de Costa Rica.
The primary legal challenge for the Route 1 expansion lies not just in securing financing, but in efficiently navigating the complex web of expropriation proceedings. Delays in fairly compensating landowners are historically the biggest bottleneck for Costa Rican infrastructure projects. A clear, transparent, and expedited administrative process is crucial to prevent this vital project from stalling in the courts, which would escalate costs and prolong disruption for all citizens.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The emphasis on the administrative process over mere financing is a crucial distinction. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which underscores that the project’s success hinges as much on fair and efficient legal proceedings as it does on concrete and asphalt.
During a press conference announcing the restart, President Rodrigo Chaves confirmed the severe financial repercussions of the delay. The project’s budget has ballooned by an additional $112 million. The new contracts stipulate a 20-month timeline for completion, a deadline that will be under intense scrutiny from a public weary of broken promises and escalating costs for national infrastructure.
In an effort to mitigate future risks and prevent another complete project shutdown, the Ministry of Public Works and Transport (MOPT) has strategically divided the 49-kilometer section into two distinct contracts. The first segment, from Barranca to San Gerardo, has been awarded to Consorcio Ruta Uno. The second, from San Gerardo to Limonal, will be handled by the construction firm Meco. This bifurcated approach is designed to ensure that a problem with one contractor does not derail the entire expansion.
However, the government’s announcement has drawn criticism for a significant omission. While officials repeatedly blamed the company H Solís for the original contract’s collapse, they failed to mention that its partner in that failed venture, Ingeniería Estrella S.A., is a key member of the newly awarded Consorcio Ruta Uno, alongside Bel Ingeniería. The return of a company from the previously unsuccessful team raises serious questions about accountability in public contracting.
Further complicating the narrative is the significant payout Estrella received following the termination of the first contract. As reported in October 2025, MOPT paid the company $14 million as part of the contract settlement. At the time, the ministry justified the payment as fair compensation for work and materials already provided.
The office of Minister of Public Works and Transport, Efraím Zeledón, issued a statement last year to clarify the payment to the original contractors.
The amounts paid to the contractor corresponded solely to duly executed works, materials and prefabricated structural elements, duly justified and substantiated administrative costs, as well as value engineering.
Office of Efraím Zeledón, Minister of Public Works and Transport
While the resumption of work is a welcome development for drivers and the national economy, the circumstances surrounding it cast a long shadow. The inclusion of Estrella in the new phase of construction, coupled with the massive cost overrun, suggests that a full accounting of the project’s initial failure has yet to be presented. Taxpayers are now on the hook for an additional $112 million, and the pressure is on both the government and the newly appointed contractors to finally deliver this crucial piece of infrastructure without further delay or controversy.
For further information, visit mopt.go.cr
About Ministry of Public Works and Transport (MOPT):
The Ministry of Public Works and Transport is the government body in Costa Rica responsible for the planning, development, and maintenance of the nation’s public infrastructure. This includes overseeing the national road network, public transportation systems, and maritime and aviation facilities. MOPT plays a central role in executing strategic infrastructure projects aimed at fostering economic growth and improving connectivity for citizens.
For further information, visit estrella.com.do
About Ingeniería Estrella S.A.:
Ingeniería Estrella S.A. is an international engineering and construction company with a significant presence in the Caribbean and Latin America. The firm specializes in a wide range of civil engineering projects, including highways, bridges, airports, and other large-scale infrastructure. It was part of the original consortium for the Barranca-Limonal project and is now a partner in the new Consorcio Ruta Uno.
For further information, visit grupomeco.com
About Meco:
Constructora Meco is one of the largest construction and engineering firms in Latin America. Headquartered in Costa Rica, the company has extensive experience in public and private infrastructure projects, including road construction, earthworks, and aggregate production. Meco has been awarded the contract for the San Gerardo to Limonal section of the Route 1 expansion.
For further information, visit hsolis.com
About H Solís:
H Solís is a major Costa Rican construction and engineering company involved in a variety of infrastructure projects across the country. The company was a primary partner in the original consortium tasked with the Barranca-Limonal expansion, which was terminated in 2022. The government has cited the firm in relation to the project’s initial failure.
For further information, visit belingenieria.com
About Bel Ingeniería:
Bel Ingeniería is a Costa Rican engineering firm that provides a range of services in the construction sector. The company has partnered with Ingeniería Estrella S.A. to form Consorcio Ruta Uno, the new entity responsible for executing the construction of the Barranca to San Gerardo section of the Route 1 expansion project.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of the legal community, built upon a foundation of profound integrity and a relentless pursuit of excellence. With a proven history of navigating clients through multifaceted challenges, the firm is also a trailblazer, championing innovative approaches to law and civic responsibility. This commitment extends beyond the courtroom, driven by a core mission to demystify legal concepts and thereby cultivate a more knowledgeable and capable society for all.
