Borrowing Big Only Way to Go, Says MOPT Head
May, 2006
The Costa Rican government is negotiating with a number of banks to borrow about $100 million, all of which will be spent on roadwork and associated infrastructure, the Minister of Public Works and Transport confirmed this week.
Karla González Carvajal, on her first official tour of Guanacaste, would give few other details on the funding, other than to say the government, through President Arias, was looking into a type of fideicomiso, or trust fund by which the money would be paid back through future gains or income, probably gasoline taxes.
San José is understood to be in discussions with both the Central American Bank of Economic Integration as well as the Inter-American Development Bank, which also helps foster sustainable economic and social development in Latin America and the Caribbean through lending operations.
The announcement the government is looking for ways to finance a radical upgrade of the country’s infrastructure was one piece of good news, in amongst a large dose of reality for the business, tourism and government leaders who met with Ms González.
“In terms of infrastructure, we have to tend to the whole country, fix the basics everywhere,” the Minister told The Beach Times in an exclusive interview. “But in terms of new roads and road upgrades we have to concentrate on Limón and Guanacaste, this is clear, these are the major arteries that need addressing.
“If we have the money, and I stress if we have the money, we will put in place what is necessary, but I refuse to make any promises,” she said.
In fact, the minister refused to be drawn on when critical repair works to key tourist roads, started briefly in March, and then abandoned, might be finished.
Twenty-two maintenance contracts for the area, long believed to have been adjudicated and awarded to contractors, are now said to be unsigned, largely due to appeals and other legal action, and still with the Comptroller General’s Office.
“As long as we have the 22 contracts signed then we can begin repairing the roads,” the minister told a meeting of about 30, mostly civic and tourist leaders, from as far away as La Cruz, Monteverde, Nicoya, Liberia and Filadelfia.
“The moment they are on my desk I will sign them immediately so machinery can start, but we can’t do anything about circumventing the law of contracting,” she said. “I cannot change the terms of the law but I can help move things along.
Ms González said she expected the contracts to come out of the Comptroller’s Office next week, but acknowledged it could be as long as three months before work was underway.
“I cannot tell you for certain when the roads will be repaired. I cannot answer that.”
The Minister and her entourage --- Vice Ministers Viviana Martin (Transport) and Pedro Castro (Public Works) --- heard a litany of complaints, mostly to do with the state of the roads.
Alvaro Conejo, President of the Guanacaste Chamber of Tourism pointed to the road between Belén and Huacas, which he said had worsened with the coming of the rains.
“All the money that was invested in the few works that were done have gone to waste,” Mr Conejo told the Minister. “For us that road is vital because of the area it feeds.
“Tourists do not want to leave their hotels because of the state of the roads. Everyone is suffering, the tourism services along the beaches, in the mountains and in the national parks.”
While the government is looking to raise money, the meeting also heard there is money available --- it is simply not in the right place.
About two billion colones (or about $4 million), for example, had been set aside for Guanacaste road repairs in a plan hatched between the Ministerio de Obras Públicas y Transporte (MOPT) and the Comisión Nacional de Prevención de Riesgos y Atención de Emergencias (National Emergency Commission, or CNE). By declaring the state of the country’s roads a national emergency, the Ministry had hoped to get around the lengthy and cumbersome contract bidding process, and the appeals that invariably follow.
But nearly six months later the money still languishes within the CNE.
For her part, Ms González says her ministry has no power over the CNE. It reports to the Office of the President.
The president of the CNE, Daniel Gallardo, said late this week he would tour Guanacaste in the next week to see the state of roads first hand. He added there were questions by his inspectors over the quality of work by contractors.
“The CNE has not wanted to authorize the work between Huacas and Belén because they have some questions about laboratory tests presented on work done upon these roads,” Ms González said.
The two met this week to try to find a solution to the problem.
Some of the most scathing criticism, albeit of the previous administration, came from the Mayor of Liberia, Ricardo Sámper, who said municipalities often had money to help with national road repairs, but were unable to find the correct channels.
“When MOPT and the municipalities unite, we do good things,” the mayor said, “but if I need a truck from MOPT they tell me they don’t have any gasoline. If I try to give them diesel there is so much red tape it is impossible to get anything done.
“For instance the lights in the center of Liberia. From 1993 I have had 20 million colones (about $39,300) to spend on that but I can’t use the money because MOPT has all these other requirements, so the money just sits there.”
Mayor Sámper also complained of a lack of signage on the roads, saying at least 14 people had died in road accidents because of it.
The Minister called for a commission to be set up amongst the group, which would meet with her vice ministers once a month to follow up on the problems.
Ms González’ was at pains to point out the trust find idea had yet to be approved, adding, there was a concern the International Monetary Fund (IMF) would question the validity of such a trust, which in reality is just another loan.
The IMF itself does not make loans, except in times of dire economic crisis, but it does regulate or limit the amount of short and long-term debt a country can have at any given time.
Generally, the Minister received good grades from those listening, if not so much for what she is going to do, then for her honesty in outlining the situation.
“It is clear their position is very serious,” said the Chamber’s Conejo.
“They don’t have the amount of money needed to fix the country, but they are looking for ways to get it,” he added. “We have to give them time (the new government) to adjust.”
“She was giving us the reality of the situation,” said Ana Saborío, vice president of the Chamber.
“There is no dead end here, there is always a solution but what she is saying is we are going to have to work with her and be creative.”
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