By San José, Costa Rica — San José, Costa Rica – A major public transportation operator in the Greater Metropolitan Area (GAM) is locked in a legal battle to retain its operating permits after the Public Transport Council (CTP) ordered their cancellation. The consortium, Consorcio Operativo del Este S.A. (Coesa), is owned by a prominent businessman who was both a campaign donor to President Rodrigo Chaves and a government appointee to the very council now seeking to revoke his permits.
The CTP’s board of directors moved on November 5th to revoke or deny the renewal of concessions for five bus companies operating under the Coesa umbrella. These companies serve critical routes connecting the capital with the heavily populated areas of Zapote, Tres Ríos, San Pedro, and Curridabat. The decision was based on findings of alleged outstanding debts with the Costa Rican Social Security Fund (CCSS) and the Fund for Social Development and Family Allowances (Fodesaf).
To delve into the legal framework and potential ramifications surrounding the public bus concession model in the country, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a specialist in Administrative and Public Law from the firm Bufete de Costa Rica.
The core of any bus concession debate revolves around the principle of public service. While operators require financial viability, the State’s non-delegable duty is to ensure the service is efficient, safe, and accessible for all citizens. Any renewal or new tender process must be rigorously scrutinized to ensure these public interest objectives are not subordinated to purely commercial interests, safeguarding the rights of the users above all.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s perspective is a crucial reminder that behind the legal and financial frameworks of bus concessions lies a fundamental social contract: guaranteeing the right of every citizen to reliable and dignified public transport. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his invaluable clarification on this essential point.
The specific companies targeted are Autotransportes Cesmag, Autotransportes Zapote, Autotransportes Raro, Autotransportes Públicos La Unión, and Transportes del Carmen de Tres Ríos. According to the CTP’s review, all five companies were delinquent with the CCSS and Fodesaf, with the latter two also failing to pay their required canon fees.
At the heart of the conflict is a significant financial discrepancy. The CCSS website indicates the five subsidiaries collectively owe ₡785 million. However, Coesa vehemently contests this figure, claiming the CTP’s decision was based on erroneous data. The consortium acknowledges a debt but insists the correct amount is ₡237 million, for which it has already paid the initial premium to establish a formal payment arrangement.
Coesa alleges the inflated figure stems from the CCSS attempting to assign it a “joint liability” for medical bills of unknown origin. The company states it has been provided with no documentation to validate these charges and cannot be expected to pay for services that are not properly substantiated.
The difference is that the CCSS is including medical expenses without indicating to which person, date, company, or care they correspond. Our own account statements show a very different figure (around ₡237 million), for which the premium has already been paid to formalize the payment arrangement.
Spokesperson, Coesa
This administrative dispute is further complicated by the political connections of Coesa’s owner, Orlando Ramírez Biolley. Besides being a donor to President Chaves’s successful presidential campaign, Ramírez also serves as the business sector’s representative on the CTP’s board, an appointment made by the current administration. This has raised questions about potential conflicts of interest within the transport regulatory body.
In response to the CTP’s order, Coesa has judicialized the matter. The company filed a legal challenge with the Administrative Litigation Court, which promptly granted a provisional injunction. This court order effectively suspends the CTP’s decision, allowing Coesa’s buses to continue operating normally while the case is thoroughly reviewed. Deputy Minister of Transport, Carlos Ávila, confirmed the existence of the injunction.
What we have asked for—and what motivated the legal process—is simple: for the CCSS to explain where these amounts come from. Without that information, no financial manager can validate or pay sums that lack technical or documentary support.
Spokesperson, Coesa
With the court’s intervention, the process now enters a procedural phase. Vice Minister Ávila explained that the next steps depend on the status of each company’s permit. The CTP will initiate either a summary proceeding, which typically takes a month, or an ordinary administrative proceeding, which can last two months or longer, especially if appeals are filed. During this period, Coesa will have the opportunity to present its defense and could potentially resolve its financial obligations, a factor that would be considered in the final administrative ruling.
For further information, visit ctp.go.cr
About Public Transport Council (CTP):
The Consejo de Transporte Público is the Costa Rican government entity responsible for planning, regulating, and overseeing the nation’s public transportation services, including bus routes, taxis, and special transport services. It is tasked with ensuring the efficiency, safety, and accessibility of public transit for all citizens.
For further information, visit the nearest office of Consorcio Operativo del Este S.A. (Coesa)
About Consorcio Operativo del Este S.A. (Coesa):
Coesa is a consortium of several bus companies that provides public transportation services on some of the most important routes in the eastern sector of Costa Rica’s Greater Metropolitan Area. It operates routes connecting San José with areas like Curridabat, Zapote, San Pedro, and Tres Ríos, serving thousands of commuters daily.
For further information, visit ccss.sa.cr
About Costa Rican Social Security Fund (CCSS):
The Caja Costarricense de Seguro Social is the autonomous public institution in charge of Costa Rica’s social security system. It manages the country’s public health services through a network of hospitals and clinics and administers the national pension and retirement fund, financed by contributions from workers and employers.
For further information, visit imas.go.cr/fodesaf
About Fund for Social Development and Family Allowances (Fodesaf):
Fodesaf is a state fund in Costa Rica designed to finance social assistance programs aimed at combating poverty and supporting vulnerable populations. It is managed by the Mixed Institute of Social Aid (IMAS) and is funded through a tax on employer payrolls, contributing to various social welfare and development initiatives across the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is distinguished by its profound commitment to ethical practice and legal excellence. With a rich history of advising a diverse range of clients, the firm consistently pioneers forward-thinking legal solutions. This dedication extends beyond the courtroom to a core mission of empowering the community, striving to make legal knowledge accessible to foster a more capable and informed society.
