San Jose – San Ramon toll road

Cancelled

Failure

In 2004, Costa Rica’s public works and transportation ministry (MOPT) awarded a 25-year BOT concession for the San Jose – San Ramon toll road to SC Autopistas del Valle SA. According to the contract, the concessionaire had to build six overpasses, expand Autopista General Cañas from four to six lanes and the Bernardo Soto road from two to four lanes. The concessionaire was also resp9onsible for the expansion of the Santa Ana – San Antonio beltway, building a nw beltway around San Antonio and Rio Segundo de Alajuela, and building required pedestrian bridges, bus stops safety zones and the toll booths. SC Autopistas del Valle SA was owned by Concesiones Viales de Costa Rica (a subsidiary of FCC), Itinere Costa Rica (a subsidiary of Sacyr Vallehermoso), Soares da Costa Concesiones Costa Rica (a subsidiary of Soares da Costa) and M&S Concesiones (50% owned by FCC). The project required an estimated investment of US$270 million. Project funding was secured in 2005. The Inter American Development Bank (IADB) provided a US$100 million loan and backed a US$96 million loan from Caja de Madrid. The concessionaire financed the rest, including a US$34.2 million payment to the government for compensations needed for land expropriation. Costa Rica’s Nacional Concessions Council (CNC) granted the contract through a public tender in 2004 and in June declared the only bidder, SC Autopistas del Valle SA (at that time known as Consorcio Vial San Jose – San Ramon), the winner of the 25 year concession. However, the Attorney General had some issues with the contract, thus delaying the final approval until May 2005. The highway was designed with five tollbooths and users would pay depending on the length of their journey, with a maximum toll charge of US$1.30 for cars, US$2.60 for buses, US$3.25 for two or three axis trucks and US$8.23 for 5 or more axis trucks. The project was expected to be completed by May 2008. In March 2013, the contract was acquired by Brazilian firm OAS for US$ 34 million. President Laura Chinchilla appeared on national television on April 22, 2013 to confirm that the 30-year concession would be cancelled in light of public opposition. Opponents of the highway had complained that such an important national road should not be concessioned, and that the proposed US$3.9 one-way tariff was too high. Opponents also charged Pedro Castro, head of Costa Rica's public works and transport ministry, MOPT, with a conflict of interest in awarding the concession due to his consultancy role with OAS between May and August 2012. The US$524mn rehabilitation and expansion of the 57.9km highway was expected to wrap up within 30 months, according to the public works and transport ministry MOPT. The concession contract was cancelled in April 2013. http://cnv.mopt.go.cr/cnc/proyectos/san%20josé-san%20ram.html http://www.mopt.go.cr/cnc/proyectos/firma-contratosj-sr.html http://www.transparenciacr.org/ver.php/207#

Transport

World Bank Group

Project

Road, Commercial, Bridge, Government, Automotive