

Currently released so far... 12900 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
2011/05/18
2011/05/19
2011/05/20
2011/05/21
2011/05/22
2011/05/23
2011/05/24
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Consulate Karachi
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AE
ASEC
AS
AR
AMGT
AFIN
AORC
AU
AG
AF
APER
ABLD
ADCO
ABUD
AM
AID
AJ
AEMR
AMED
AL
ASUP
AN
AIT
ACOA
ANET
ASIG
AA
AGMT
AINF
AFFAIRS
ADANA
AY
AADP
ARF
ACS
AGR
AMCHAMS
AECL
AUC
APEC
APECO
AFGHANISTAN
ACAO
ASEAN
ADM
AGAO
AND
ADPM
ATRN
ALOW
AROC
APCS
AORG
AO
AODE
ACABQ
AX
AMEX
AZ
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AFSI
AFSN
AC
ASEX
AER
AVERY
AGRICULTURE
ASCH
AFU
AMG
ATPDEA
ASECKFRDCVISKIRFPHUMSMIGEG
AORL
BR
BO
BA
BM
BL
BH
BK
BEXP
BILAT
BTIO
BF
BU
BD
BY
BE
BG
BB
BBSR
BT
BRUSSELS
BP
BX
BC
BIDEN
BMGT
BWC
BN
BTIU
CA
CS
CO
CD
CR
CPAS
CDG
CI
CDC
CBW
CU
CVIS
CE
CONS
CH
CMGT
CASC
CY
CW
CG
CJAN
CIDA
CODEL
CWC
CIA
CBSA
CEUDA
CFED
CLINTON
CAC
CL
CACS
CIC
CHR
CAPC
CM
CT
CTR
COM
CROS
CN
COPUOS
CV
CF
CARSON
CONDOLEEZZA
CICTE
CYPRUS
COUNTER
COUNTRY
CBE
CKGR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
COE
CARICOM
CB
CSW
CITT
CACM
CDB
CJUS
CTM
CAN
CLMT
CBC
CNARC
CIS
EFIN
ECON
ETRD
EAID
EC
EU
EUN
EINV
EG
ETTC
EIND
ELAB
EAGR
ECIN
EINT
ENRG
EFIS
ELTN
EAIR
EPET
EZ
ET
ENERG
ECPS
EWWT
EI
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
ER
ES
EN
EMIN
ESENV
ENNP
ENGR
ETRDEINVECINPGOVCS
ENVI
ECINECONCS
ELN
EFTA
ELECTIONS
ENVR
EXTERNAL
ENIV
ESA
EPA
ETRO
ETRDECONWTOCS
EUR
ECUN
EXIM
EK
EUREM
ECONOMY
EUMEM
ERNG
EFINECONCS
EAIDS
ECA
ETRC
EINVEFIN
ETC
EAP
EINN
ECONOMIC
EXBS
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EREL
EINVETC
ECONCS
ETRA
EAIG
EUC
ERD
IQ
IR
IS
IN
IA
IC
IZ
ICRC
ID
IDA
IT
IO
IAEA
ICJ
ICAO
IV
IBRD
IMF
IAHRC
IWC
ILO
ISLAMISTS
IGAD
ILC
ITU
ITF
INRA
INRO
ICTY
INRB
ITALY
IBET
IL
INTELSAT
ISRAELI
IMO
IDP
ICTR
ITRA
IRC
IRAQI
IEFIN
IPR
IIP
INMARSAT
ITPGOV
ITALIAN
INTERNAL
IRS
INTERPOL
IEA
INR
ISRAEL
IZPREL
IRAJ
IF
ITPHUM
IACI
INDO
KPAO
KMDR
KCOR
KNNP
KJUS
KCRM
KDEM
KVPR
KTFN
KPRP
KTIP
KSCA
KSUM
KTEX
KIDE
KIRF
KV
KTIA
KN
KG
KFRD
KWMN
KUNR
KISL
KU
KGHG
KPKO
KOMS
KPAL
KIPR
KMCA
KOMC
KRVC
KSEP
KAWC
KOLY
KWBG
KACT
KFLO
KHIV
KZ
KGIC
KBCT
KDRG
KBTR
KCFE
KE
KHLS
KMPI
KAWK
KPWR
KIRC
KRAD
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KFLU
KPLS
KRIM
KSTH
KDDG
KPRV
KICC
KS
KSAF
KBIO
KREC
KCGC
KCIP
KTDB
KWAC
KPAI
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFSC
KSTC
KMFO
KID
KNAR
KMIG
KVRP
KNEI
KGIT
KNSD
KHDP
KSAC
KWMM
KR
KCOM
KAID
KENV
KVIR
KHSA
KO
KCRS
KPOA
KTER
KFIN
KSPR
KTBT
KX
KCMR
KMOC
KCRCM
KBTS
KSEO
KOCI
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KSCI
KTLA
KCSY
KTRD
KMRS
KNPP
KJUST
KRCM
KCFC
KCHG
KREL
KFTFN
KLIG
KDEMAF
KGCC
KICA
KHUM
KSEC
KPIN
KESS
KDEV
KPIR
KWWMN
KOM
KWNM
KRFD
KRGY
KIFR
KWMNCS
KPAK
MARR
MOPS
MUCN
MCAP
MNUC
MEPP
MTCRE
MASS
MO
MIL
MX
MAS
MEDIA
MAR
MI
MQADHAFI
MPOS
MTCR
MK
MG
MA
MY
MU
ML
MPS
MW
MD
MARAD
MC
MR
MT
MTRE
MASC
MRCRE
MAPP
MZ
MP
MOPPS
MTS
MLS
MILI
MEPN
MEPI
MEETINGS
MERCOSUR
MCC
MIK
MAPS
MV
MILITARY
MDC
MASSMNUC
NI
NZ
NL
NO
NPT
NATO
NS
NU
NP
NPA
NSFO
NDP
NT
NW
NASA
NSG
NE
NORAD
NAFTA
NG
NATIONAL
NSSP
NV
NSF
NK
NA
NEW
NPG
NR
NGO
NIPP
NZUS
NH
NC
NRR
NAR
NATOPREL
NSC
OIIP
OPRC
OTRA
OEXC
OREP
OSCE
OVIP
OPAD
OBSP
OECD
OFFICIALS
OAS
OPDC
ODIP
OPCW
OES
OFDP
OPIC
OCS
OIC
OHUM
OSCI
OVP
ODC
OIE
OTR
OMIG
OSAC
OFDA
ON
OCII
PREL
PINR
PGOV
PARM
PE
PTER
PHUM
PO
PINS
PREF
PK
PM
POL
PBTS
PNAT
PHSA
PAS
PA
PL
PGIV
PHUMPREL
POGOV
PAK
PEL
PROP
PP
PINL
PBT
PTBS
PG
PINF
PRL
PALESTINIAN
PSEPC
POSTS
PAHO
PHUMPGOV
PGOC
PNR
PREFA
PMIL
POLITICS
POLICY
PROV
PBIO
PREO
PAO
PDOV
PGOF
POV
PCI
PRAM
PSI
POLITICAL
PAIGH
PJUS
PARMS
PROG
PTERE
PRGOV
PORG
PS
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PNG
PFOR
PUNE
PGOVLO
PHUMBA
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PY
PLN
PHUH
PF
PHUS
PU
PARTIES
PCUL
PGGV
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
RU
RS
REGION
REACTION
REPORT
RO
RW
RCMP
RSO
RP
RM
ROOD
RFE
RICE
ROBERT
RSP
RF
RELATIONS
RIGHTS
RIGHTSPOLMIL
RUPREL
SENV
SY
SNAR
SCUL
SP
SF
SW
SOCI
SU
SMIG
SO
SA
SR
SZ
SI
SC
SEVN
SN
STEINBERG
SK
SH
SNARCS
SPCE
SARS
SNARN
SG
SL
SYRIA
SIPRS
SAARC
SNARIZ
SWE
SYR
SEN
SCRS
SAN
ST
SIPDIS
SSA
SPCVIS
SOFA
SENVKGHG
SANC
SHI
SHUM
TU
TSPA
TBIO
TS
TRGY
TINT
TPHY
TN
TW
TH
TZ
TSPL
TP
TBID
TI
TF
TD
TT
TNGD
TL
TC
THPY
TIP
TX
TV
TK
TERRORISM
TO
TRSY
TURKEY
TFIN
TAGS
TR
UK
UNSC
UNGA
UNESCO
UNHRC
UP
UN
USTR
US
UNDC
UY
UNICEF
UNDP
UNMIK
UNAUS
UNCHC
UNCSD
USOAS
UNFCYP
UG
UNIDROIT
UNO
UV
UNHCR
UNEP
USEU
UZ
UNCND
USUN
UNCHR
USNC
USPS
USAID
UE
UNVIE
UAE
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
UNPUOS
Browse by classification
Community resources
courage is contagious
Viewing cable 08SANJOSE900, COSTA RICAN ROADS SUFFER NEGLECT, NOW A FOCUS
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08SANJOSE900.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
08SANJOSE900 | 2008-11-18 21:25 | 2011-03-21 16:30 | UNCLASSIFIED | Embassy San Jose |
VZCZCXYZ0000
PP RUEHWEB
DE RUEHSJ #0900/01 3232125
ZNR UUUUU ZZH
P 182125Z NOV 08
FM AMEMBASSY SAN JOSE
TO SECSTATE WASHDC PRIORITY 0277
UNCLAS SAN JOSE 000900
SIPDIS
DEPT FOR WHA/CEN RBEAL AND EEB/IFD/ODF MSIEMER;
PLEASE PASS TO DOT AND TREASURY SSENICH
E.O. 12958: N/A
TAGS: PREL ELTN EFIN PGOV ETRD ECON CS
SUBJECT: COSTA RICAN ROADS SUFFER NEGLECT, NOW A FOCUS
OF THE GOCR AND THE IDB
¶1. SUMMARY: After nearly two decades of neglect, Costa
Rica's roads and transportation infrastructure in general
are about to receive significant investment courtesy of
the Inter-American Development Bank (IDB). The IDB
approved a USD 850 million line of credit to rehabilitate
roads, railways, and ports in desperate need of repair.
This amount will be matched by a USD 200 million
investment by the GOCR for a total infrastructure
investment of USD 1.05 billion. Meanwhile, construction
finally restarted on the 30 year-delayed connector
highway between the Central Valley (where San Jose is
located) to the Pacific port of Caldera, and is projected
to finish in mid-2010. Improvements to the highway
system are desperately needed to support increased intra-
city, interregional, and cargo traffic likely to result
from implementation of CAFTA-DR and potential trade
agreements with the European Union and China. Highway
improvements should also help make Costa Rica's highways
safer. Auto accidents are the leading cause of violent
death in the country. END SUMMARY
MANY ROADS, BUT NOT SO GOOD
---------------------------
¶2. Costa Rica has one of the densest road networks in
Latin American with 0.70 kilometers of road for kilometer
squared of land and roads are the principal means of
transporting goods and people in the country. The
national road system includes 4,905 km of paved roads and
an additional 2,734 km of gravel and dirt roads that are
classified as in good, medium, or bad condition. Roads
classified as in "good" condition, 24 percent, are in the
minority:
Condition: -- Good -- -- Medium -- -- Bad --
KM Percent KM Percent KM Percent
Paved 1197 24% 2282 47% 1436 29%
Gravel/Dirt 50 2% 1795 66% 890 32%
Source: MOPT
Costa Rica's road system also includes 29,014 km of roads
maintained by municipalities, including 4,454 km of paved
roads. Thirty percent of these paved roads are
considered to be in "good" condition.
¶3. Whether part of the national or municipal system,
many kilometers of roadway are riddled with potholes,
regularly washed out in the rainy season, equipped with
old and poorly-maintained bridges, or constructed with
too few lanes to accommodate heavy, slow-moving truck
traffic as well as private vehicles ascending and
descending mountainous terrain. The poor condition of
many roads and highways impacts tourism, logistics, and
safety: the average speed of advance (even between major
cities with normal traffic) can be as low as 30 miles per
hour which surprises tourists, increases business
transportation costs due to time, and increases accident
rates as drivers attempt to overtake slower-moving
traffic on winding, mountainous, two-lane roads.
¶4. In the last twenty years, the population of Costa
Rica grew from 2.7 million in 1987 to approximately 4.4
million in 2007. This 59 percent population growth was
accompanied by a large increase in the number of drivers
in Costa Rica. The Ministry of Public Works and
Transportation (MOPT) estimates that there are twice as
many cars on the road in Costa Rica today compared to ten
years ago. In 1984 there was one car for every 12
residents, now there is one car for every four.
TOO MANY CARS, NOT ENOUGH CAPACITY
----------------------------------
¶5. With a steady increase in vehicular traffic, neither
highway capacity nor road system maintenance has kept
pace with the expanding country. Throughout Costa Rica,
and particularly in metropolitan San Jose, serious
traffic congestion bogs down the transport of goods and
people. Increased trucking, as a result of overall
economic growth and the termination of the train link
from San Jose to the major ports on both coasts (due to
the 1991 earthquake), added an additional strain to the
road system.
¶6. One example of national frustration with the growing
gap between road capacity and the increase in vehicles is
the long-awaited San Jose-Caldera road. Underway for 30
years and repeatedly blocked by land acquisition and
financing and political obstacles, construction has
finally resumed. The 77 kilometer right-of-way stretches
from the west side of San Jose to the Pacific port city
of Caldera. MOPT estimates a savings of 45 minutes in
travel time (currently a two-hour trip under ideal
conditions) plus a reduction in transit accidents and
fuel consumption.
¶7. Critics point to the rising construction costs (from
USD 150 million to USD 265 million with a concomitant
rise in projected one-way tolls from USD 2.70 to USD
3.50) and usage biased toward heavy transport when
highway sections outside of San Jose are only one lane
each way. MOPT predicts a best case scenario completion
date of mid-2010. Autopistas del Sol, an Argentine-led
consortium (financed by Banco Centroamericano de
Integracion Economica and Caja de Madrid), will develop
and manage the concession and will recoup its investment
through tolls. Autopistas del Sol will be responsible
for operating the highway for 25 and a one half years.
HOW TO FINANCE ROADS
--------------------
¶8. In the 1960s and 1970s, Costa Rica was a regional
leader in investment related to infrastructure
improvements, including the construction of its segment
of the Inter-American Highway. In fact, in the 1970s,
government investment in the road system climbed to six
percent of Costa Rica's Gross National Income (GNI).
However, the financial crisis in the early 1980s led to a
significant decrease in funding for road maintenance and
construction. During the previous administration (2002-
2006), the rate of investment fell to just 1 percent of
GNI. To emphasize the state of neglect, MOPT Minister
Karla Gonzalez remarked to a visiting Congressional
delegation in March that highway revenues had not been
allocated to the Ministry for more than ten years.
¶9. The National Roads Council (CONAVI), a MOPT agency,
wields budget authority and the responsibility for
administering the Roads Fund. The Roads Fund receives
financing from several sources: fuel and vehicle taxes,
national and international loans, gains from investments,
tolls, and vehicle fines.
¶10. The primary source of funding for national and
municipal roads is a single fuel tax, currently set at
165 colones per liter (approximately USD 1.21 per
gallon). Thirty percent of the annual revenue yield of
this tax is allocated to CONAVI. Seventy-five percent of
this allocation is earmarked for the National Road
Network while the remaining 25 percent goes to municipal
roads. MOPT anticipates receiving USD 140 million from
the fuel tax in 2008.
¶11. Since 2006, CONAVI has been able to invest heavily
in road maintenance as a result of the funding received
through the single fuel tax. In 2006, it invested
approximately USD 45.6 million and in 2007 investments
totaled about USD 111 million. Looking forward, MOPT
estimates that it will need an additional USD 75 million
annually for maintenance and basic improvements of the
existing paved roads of the national system as well as
USD 50 million annually for gravel roads. (Source: MOPT)
THE IDB LENDS A HELPING HAND
----------------------------
¶12. The Inter-American Development Bank (IDB) extended
an USD 850 million line of credit to the government of
Costa Rica for the development of the country's
transportation system. The IDB loan focuses on new
construction projects rather than regular maintenance.
The credit line must be approved by the Costa Rican
national assembly because the IDB loan instrument has a
preferred credit guarantee, which stipulates that the
Costa Rican government must pay off this loan prior to
other creditors. Without this guarantee, loans do not
need to be approved by the legislature. Minister
Gonzalez expects the IDB loan to be approved by end of
the calendar year without major political controversy.
However, as the tortuous approval process for the CAFTA-
DR implementation legislation highlighted, "quick" action
by the legislature is never a given.
¶13. The GOCR will match the IDB loan with USD 200
million. The first disbursement of USD 300 million from
IDB plus a match of USD 75 million from GOCR will fund
the First Road Infrastructure Program (PIV). The monies
will be spent on rehabilitating 500 kilometers of
highways and bridges throughout Costa Rica. MOPT splits
this first tranche for direct construction costs of USD
342.5 million and for engineering, administration, and
support and capacity building to MOPT and CONAVI of USD
32.5 million. The IDB expects that the investment will
result in a 20 percent reduction in the number of days
that roads are impassable and a 10 percent reduction in
the amount of time traveled on asphalt roads.
¶14. The IDB will disburse the USD 300 million loan over
five years. The GOCR will pay back the loan over 25
years with a five year grace period. The anticipated
interest rate is 5.64 percent annually.
¶15. Based on the assumption that the Legislative Assembly
will approve the USD 850 million in IDB loans, MOPT has
created a long-term plan for future road improvements and
construction, entitled El Programa de Infraestructura de
Transporte (PIT). The plan distributes funding between
national and municipal roads in phases. The PIT also
includes rehabilitation of additional highways, the
metropolitan train system, and bike paths.
COMMENT
-------
¶16. The legislative assembly is expected to approve the
IDB line of credit, but the nature of the legislative
approval process, complex to say the least, may still
cause delays. Once this line of credit is approved and
the first loan disbursed, road projects ultimately will
alleviate congestion, save time, and lower fuel costs,
but all projects may endure the tenuous nature of
construction contracting in Costa Rica. Improvements to
the highway system are desperately needed to support
increased levels of intra-city traffic, interregional
traffic, and cargo transit resulting from the anticipated
implementation of CAFTA-DR and potential trade agreements
with the European Union and eventually, China. Road
improvements are also part of the equation for lowering
the accident fatality rate for Costa Rica, running at
nearly 7 deaths per 100,000 thus far in 2008. Auto
accidents are the leading cause of violent death in the
country.
CIANCHETTE