Costa Rica: Government performance in private investment, concessions

Business News Americas - Latin America's Business Information Leader: "Costa Rica's government has a long way to go before it can really say that it is getting the most out of private investment - in the form of concessions - to boost the country's economic development.

The hotly disputed impasse between Costa Rica's government and Juan Santamaría international airport concessionaire Alterra Partners has gotten lots of press both locally and internationally, including by BNamericas. The involvement of the IFC as one of Alterra's financial backers has also added some weight and brought more of the international spotlight to the situation.

Without taking sides with Alterra - which claims to have lost US$18.7mn in revenue due to what it deems changes in the original contract - or with the comptroller general - which has doggedly stuck to the stance that addendums to 'balance' this contract would be illegal - it is suffice to say that this dispute, which has dragged on for years, has only hurt development at the airport, with the knock-on effect of hurting tourism. It has also led many Costa Ricans to look suspiciously on concessions schemes.

However, the questioned concessions process at Juan Santamaría airport is not a unique case in Costa Rica.

Another project that springs to the forefront when it comes to concessions not performing as expected is"

Labels: costa rica, politics, san jose