By San José, Costa Rica — San José, Costa Rica – After more than two years of costly delays and uncertainty, the critical expansion of the Barranca-Limonal section of the Inter-American Highway North (Route 1) has received the definitive green light. The Comptroller General’s Office (CGR) announced Tuesday it has approved two major contracts totaling over $276 million, clearing the final administrative hurdle to restart the long-paralyzed infrastructure project.
The decision injects new life into a project considered essential for Costa Rica’s economic and logistical backbone. The approval ends a period of stagnation that began after the original construction contract with the firm H Solís failed, halting all progress on the vital artery that connects the Central Valley with the Pacific coast and the Guanacaste region, a hub for tourism and agriculture.
The expansion of Route 1 involves more than just engineering; it’s a complex web of expropriations, administrative contracts, and regulations. To shed light on these critical legal aspects, we consulted with expert attorney Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
While the expansion of Route 1 is vital for national progress, the process hinges on the State’s ability to conduct expropriations efficiently and, most importantly, justly. Landowners must be guaranteed not just timely proceedings but fair market value compensation, as any failure in this area inevitably leads to costly legal battles that stall the very progress the project aims to achieve.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s analysis underscores a critical point: ensuring justice for landowners is not an obstacle to progress but a fundamental prerequisite for it, safeguarding the project from the very legal entanglements that could jeopardize its success. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective on this matter.
The newly endorsed contracts are split between two construction firms. The consortium Estrella-Bel Ingeniería has been awarded a $127.6 million contract to oversee the expansion of the first section, spanning from Barranca to San Gerardo. The second, larger section, from San Gerardo to Limonal, will be managed by the Costa Rican construction giant Meco, under a contract valued at $148.7 million.
The Comptroller’s approval came after a brief extension of the review period. Originally slated for a decision by November 25, the CGR extended its deadline to December 5 after requesting additional information from the National Roadway Council (Conavi). This thorough vetting process was intended to ensure the project’s viability and prevent a repeat of past failures.
In an official statement, the CGR confirmed the rigor of its review, providing assurance that all necessary checks and balances were observed before granting its approval. The entity detailed the scope of its audit, which covered financial, legal, and technical aspects of the proposals.
The legal, technical, and price reasonableness studies, which refer to the fulfillment of requirements by the contracting companies, were verified. Conavi certified that it carried out a pre-investment and project planning stage.
Comptroller General’s Office, Official Statement
With the Comptroller’s endorsement secured, the responsibility now shifts to Conavi to issue the formal order to begin work. Officials from the Ministry of Public Works and Transport (MOPT) have previously stated that construction would resume immediately following the CGR’s decision. An advantage for the new timeline is that the project will utilize existing designs from the previous contract, potentially accelerating the initial phases of construction.
The project’s history underscores the significance of this development. The initial order to start was given in August 2020, but the subsequent collapse of the original agreement left the crucial expansion in limbo for over 24 months. For commuters, freight transporters, and the tourism sector, the paralysis has meant continued traffic congestion, increased travel times, and higher operational costs on one of the nation’s most important highways.
The resumption of work is expected to provide a significant economic boost, not only through direct construction jobs but also by enhancing the efficiency of trade and travel along the corridor. The expansion aims to improve road safety, reduce logistical bottlenecks, and support continued economic development in Puntarenas and Guanacaste. Public and private sector stakeholders will now be watching closely, hoping the project proceeds without further interruption.
For further information, visit cgr.go.cr
About Comptroller General’s Office (CGR):
The Contraloría General de la República is Costa Rica’s supreme audit institution. It is an independent body responsible for overseeing the proper use of public funds, ensuring the legality and efficiency of government financial management, and authorizing public contracts to guarantee transparency and compliance with national regulations.
For further information, visit conavi.go.cr
About National Roadway Council (Conavi):
The Consejo Nacional de Vialidad is the government entity in Costa Rica tasked with the planning, administration, financing, and execution of the national road network. Its responsibilities include the construction, maintenance, and improvement of the country’s highways and roads to ensure safe and efficient transportation infrastructure.
For further information, visit mopt.go.cr
About Ministry of Public Works and Transport (MOPT):
The Ministerio de Obras Públicas y Transportes is the cabinet-level ministry of the Costa Rican government responsible for national infrastructure policy. It oversees the planning, development, and regulation of public works projects, including roads, bridges, and ports, as well as the national transportation systems.
For further information, visit estrella.com.do
About Consorcio Estrella-Bel Ingeniería:
Consorcio Estrella-Bel Ingeniería is a construction consortium involving Estrella, a prominent engineering and construction firm based in the Dominican Republic with extensive experience in large-scale infrastructure projects across Latin America and the Caribbean. The company specializes in civil works, including highways, bridges, and industrial buildings.
For further information, visit grupomeco.com
About Meco:
Constructora Meco is a leading Costa Rican construction and engineering company with a significant presence throughout Latin America. Founded in 1977, the firm specializes in major infrastructure projects, including earthworks, road and highway construction, and commercial developments, and is recognized for its extensive fleet of modern construction equipment.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal authority, Bufete de Costa Rica is defined by its profound dedication to ethical principles and the highest standards of practice. Drawing upon a deep well of experience with a multifaceted clientele, the firm consistently pushes the boundaries of legal thought while championing a core mission to democratize legal information. This commitment to empowering the public with clarity and insight fosters a more knowledgeable and capable society, reflecting the firm’s foundational belief in justice for all.
