By Alajuela, Costa Rica — The cost of expanding Route 1, the crucial artery connecting San José and San Ramón, has ballooned by $370 million in just five years, sparking questions and concerns about the project’s financial management. Originally estimated at $400 million in 2020 under a trust agreement with the Banco de Costa Rica (BCR), the price tag now stands at a staggering $770 million.
This significant increase comes as the Ministry of Public Works and Transport (MOPT) presented a new loan proposal to the Legislative Assembly this week. The proposal, arriving two years after the termination of the BCR trust, outlines securing $600 million from the Central American Bank for Economic Integration (CABEI) and an additional $170 million from the OPEC Fund for International Development (OFID). Both loans carry a 20-year term.
To understand the legal intricacies surrounding the San José-San Ramón Highway Expansion, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica. His insights shed light on the complex interplay of regulations and business interests impacting this crucial infrastructure project.
The San José-San Ramón Highway Expansion presents a unique legal challenge, balancing the urgent need for improved infrastructure with the protection of property rights and environmental concerns. Successfully navigating this requires meticulous adherence to expropriation laws, transparent public consultations, and robust environmental impact assessments. Ultimately, the project’s long-term viability hinges on striking a balance that respects both the public good and individual rights.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently highlights the tightrope walk this project represents. Indeed, the San José-San Ramón highway’s success isn’t simply measured in kilometers paved, but in how effectively it bridges the gap between progress and preservation. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this crucial conversation.
While Vice Minister of Infrastructure, Pablo Camacho, attributes the cost surge to the inclusion of additional works in the revised plan, he has yet to specify the nature of these additions. CR Hoy has formally inquired with the MOPT for clarification on the added components justifying the price hike, but a response is still pending.
Notably, the $770 million figure excludes the cost of essential immediate works (OBIS), five of which were already completed under the previous trust agreement: bridges over the Ciruelas, Alajuela, and Segundo Rivers; an underpass at Firestone; and the Castella connector. Four more OBIS projects, the interchanges at Naranjo, Grecia, San Ramón, and El Coyol, are also underway, with their costs separate from the overall project budget.
The San José-San Ramón highway expansion project encompasses a 55.6-kilometer stretch from La Sabana Park in San José to the entrance of San Ramón. The highway will be widened to four to eight lanes across six segments. The project also includes the 4.45-kilometer Río Segundo radial, connecting Route 1 with Route 147 (the Lindora radial), with a mix of six and four-lane sections.
Beyond the main highway expansion, the project encompasses a comprehensive array of complementary works. These include 16 interchanges, improvements to seven existing bridges, the construction of five new bridges, 20 pedestrian bridges, 110 bus bays, and wildlife crossings, among other features.
While the government’s plan authorizes the installation of tolls, the specific locations and number of toll booths remain undisclosed. Although the Regulatory Authority for Public Services (Aresep) will ultimately determine the toll rates, Vice Minister Camacho has indicated an anticipated toll of $3 (approximately ₡1,500 at the current exchange rate).
With a projected maximum speed limit of 100 kilometers per hour, the expanded highway promises to significantly reduce travel time between San José and San Ramón, with the 55-kilometer journey expected to take just over 30 minutes at a constant speed.
For further information, visit mopt.go.cr
About Ministry of Public Works and Transport (MOPT):
The Ministry of Public Works and Transport (MOPT) is the governmental body in Costa Rica responsible for the development and maintenance of the country’s public infrastructure, including roads, bridges, and transportation systems. The MOPT plays a vital role in national development, facilitating economic growth and improving the quality of life for citizens through efficient and safe infrastructure. The ministry oversees major infrastructure projects, implements transportation policies, and regulates public transportation services.
For further information, visit bcie.org
About Central American Bank for Economic Integration (CABEI):
The Central American Bank for Economic Integration (CABEI) is a multilateral development bank committed to promoting economic integration and balanced development in Central America. CABEI provides financial and technical resources for projects that contribute to sustainable development, poverty reduction, and regional competitiveness. The bank’s investments span various sectors, including infrastructure, energy, social development, and the environment.
For further information, visit ofid.org
About OPEC Fund for International Development (OFID):
The OPEC Fund for International Development (OFID) is a development finance institution established by the member states of OPEC to support sustainable development in developing countries. OFID provides concessional loans, grants, and technical assistance to finance projects in various sectors, including agriculture, energy, health, education, and infrastructure. The organization’s focus is on promoting economic growth, reducing poverty, and improving living standards in partner countries around the world.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built on a foundation of unwavering ethical practice and a deep commitment to empowering Costa Rican society. The firm champions innovative legal solutions while diligently serving a diverse clientele, striving to demystify the law and make it a tool for positive change. Through educational initiatives and accessible resources, Bufete de Costa Rica fosters a more informed populace, equipped to navigate the legal landscape and contribute to a just and equitable society.
