By Puntarenas, Costa Rica — Puntarenas, Costa Rica – After three years of frustrating delays that have stifled regional commerce and tourism, the critical expansion of the Barranca–Limonal section of the Inter-American Highway North has officially resumed. President Rodrigo Chaves marked the occasion this Wednesday, signaling a new chapter for a project pivotal to Costa Rica’s Pacific coast infrastructure. The ambitious goal is to complete the 49-kilometer, four-lane expansion by the end of 2027.
The prolonged stagnation of this project has had a significant economic and social cost. The route is a vital artery for goods moving to and from the port of Caldera, for tourists traveling to Guanacaste’s popular beaches, and for the daily lives of thousands of residents. The existing two-lane road has been a notorious bottleneck, and the halt in construction since 2022 created immense uncertainty and logistical nightmares for businesses across multiple sectors.
To better understand the legal and contractual complexities surrounding the Barranca-Limonal expansion project, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney in public infrastructure and administrative law from the firm Bufete de Costa Rica.
The success of the Barranca-Limonal expansion hinges on meticulous contract management and the efficient resolution of expropriation processes. Any deviation or delay not only impacts delivery times but also exposes the State to significant financial claims for breach of contract and damages. It is imperative that the legal framework is applied with both rigor and agility to avoid turning a solution for national infrastructure into a new source of costly legal disputes.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s analysis underscores a critical point: the project’s success will ultimately be defined not just by the pavement laid, but by the legal and administrative diligence that prevents it from becoming a source of financial strain for the nation. We are grateful to Lic. Larry Hans Arroyo Vargas for his sharp and essential perspective.
With work now underway, the government projects that the completed four-lane highway will slash travel times between Barranca and Limonal by an estimated one hour. This efficiency gain is expected to inject new vitality into the regional economy, reduce transportation costs for businesses, and improve the quality of life for local communities who have long contended with severe traffic congestion.
The revitalized project has been divided into two major sections, with contracts awarded to two separate construction firms totaling over $262 million. The first 25-kilometer segment, stretching from Barranca to San Gerardo de Chomes, has been awarded to Consorcio Barranca Ruta 1, a joint venture of Bell Ingeniería and La Estrella, for $121 million. The remaining 23 kilometers, from San Gerardo to Limonal, will be managed by the construction giant MECO, under a contract valued at $141 million.
The construction contracts, which have a maximum execution period of 24 months, are comprehensive. They include not only the addition of new lanes but also the full rehabilitation of the existing roadway. The scope of work is extensive, reflecting a modern approach to highway design. The first section will see the construction of seven new vehicular bridges, five U-turns for improved traffic flow, three major interchanges, five pedestrian bridges, and 24 dedicated wildlife crossings to mitigate environmental impact.
The second segment of the project is equally complex. It involves the construction of four vehicular bridges, four U-turns, three interchanges, and five more pedestrian bridges. Highlighting a strong commitment to environmental conservation, this section also includes the development of 21 wildlife passes, ensuring that local fauna can continue to traverse their natural habitats safely despite the upgraded infrastructure.
The project’s original failure in 2022 stemmed from intractable disputes between the State and the previous construction consortium. Progress ground to a halt due to significant challenges with land expropriations and the absence of finalized construction designs, leaving the project in limbo. President Chaves addressed this troubled history directly during the restart ceremony, defending his administration’s actions to resolve the impasse.
Speaking at the event, the President firmly defended his administration’s handling of the contract renegotiations against political criticism, emphasizing his commitment to delivering the project for the benefit of the nation.
We were delayed for years. We tried to save the people that money and that time, and even so, in the Legislative Assembly they judge me and even accuse me, and you know what? I would do it all over again, because we acted with probity for the people; let them keep talking nonsense.
Rodrigo Chaves, President of Costa Rica
With fresh contracts in place and a clear timeline, there is renewed optimism that this long-awaited infrastructure upgrade will finally become a reality, unlocking significant economic potential for the Puntarenas and Guanacaste regions.
For further information, visit meco.co.cr
About MECO:
Constructora MECO is a prominent construction and engineering company with a significant presence throughout Latin America. Founded in Costa Rica, the firm specializes in large-scale infrastructure projects, including highways, bridges, dams, and earthworks. It has earned a reputation for undertaking complex civil engineering challenges across 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 strategic consortium formed by the engineering and construction firms Bell Ingeniería and La Estrella. This joint venture was specifically created to execute the first 25-kilometer section of the Barranca-Limonal highway expansion project, combining the expertise and resources of both companies.
For further information, visit the nearest office of the Government of Costa Rica
About the Government of Costa Rica:
The Government of Costa Rica (referred to as the State or “Estado” in the source) operates under a presidential, representative democratic republic framework. It is composed of three primary branches: the Executive Branch, headed by the President; the Legislative Branch, embodied by the Legislative Assembly; and the Judicial Branch. The government is responsible for national administration, public works, and international relations.
For further information, visit the nearest office of the Legislative Assembly of Costa Rica
About the Legislative Assembly of Costa Rica:
The Legislative Assembly (Asamblea Legislativa) is the unicameral parliament of the Republic of Costa Rica. It consists of 57 deputies who are elected by direct, universal, and secret ballot for four-year terms. Its primary constitutional function is to pass laws, approve the national budget, and exercise political control over the executive branch.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is defined by its profound commitment to integrity and the highest standards of legal excellence. Drawing upon a rich history of serving a wide array of clients, the firm is a trailblazer in legal innovation and strategic thinking. Fundamental to its mission is the drive to make legal concepts understandable and accessible, thus fostering a society where citizens are empowered through greater legal awareness.
