Costa Rica modernizes public procurement

And announces mega infrastructure project, 5G technology, among other business opportunities.  

Public procurement in Costa Rica is entering a new phase. As of December 1, 2022, a new law and regulation came into effect that regulates contractual activity with the State. This regulation also regulates contractual activity for public entities that participate in markets open to competition, such as telecommunications and insurance.

This new stage marks the beginning of electronic public procurement for all contracting processes and the execution of contracts, which must be carried out through a unified digital system for all public entities.  

This system seeks to comply with the constitutional principles of transparency, legality and publicity in all stages of administrative contracts. In this way, all persons have access to all contracting procedures, so that there can be citizen control over the use of public funds. 

This system also makes it easier for international and national companies to register as State suppliers. It also makes it easier for them to access the development of the bidding processes in which they participate from anywhere in the world and to verify that they are given equal treatment in the evaluation of their proposals. 

It should be noted that in our country there are no restrictions on foreign companies participating in public sector contracts. On the contrary, they are guaranteed equal competition and a stable legal framework that severely punishes corruption. 

This law promotes innovation, economic and social development, as well as environmental protection and general well-being. To this end, it establishes the need for social, economic and environmental criteria to be incorporated into contracts, as well as the possibility of developing technological research and innovation projects through public-private partnerships.  

Public companies competing in telecommunications and infocommunications, as well as in the insurance market, have the opportunity to use a more expeditious procedure than ordinary procedures.  

In the case of the former, companies can use this special procedure to contract works, goods and services that are necessary to market products and services in their market of competition. For its part, the insurance company can use it to contract insurance intermediation services and other services. 

In addition to the new regulations, the current government has announced a new mega infrastructure project. It is a project that will be carried out in conjunction with the Central American Bank for Economic Integration (CABEI) and which has been called “Ciudad Gobierno”. 

The objective is to centralize the administrative area of ​​18 institutions and ministries in a single niche south of San José. It is a complex with a construction area of ​​close to 140,000 square meters that will incorporate mixed uses and allow commercial development on the ground floors while the upper floors will be used for offices and services. The project has already awarded the plans to the architectural studio Micucci Arquitectos based in Caracas, and has an estimated budget of US$450,000,000.

This plan is structured under a build-lease-transfer (BOLT) scheme for a maximum period of 25 years. CABEI will lease the properties to Costa Rica until finally transferring ownership to the Republic. 

In the short term, the regional entity will be responsible for formalizing the project and carrying out preparatory activities (including permits and technical studies). The Bank will then prepare an international tender for the construction and equipment of the government complex and then tender the operation and maintenance of the project. The goal is to award the construction contract in the third quarter of 2023 and begin construction in the fourth quarter.

Additionally, it has been announced that this year a process will begin for the concession of a highway, the expansion of a port, the construction of hospitals, among others. 

In the area of ​​telecommunications, it has also been announced that the bidding process for the granting of frequencies to offer telecommunications services with 5G technology will soon begin.

With these changes in regulations and projects announced by government authorities, Costa Rica offers international and national companies new opportunities for business development with the Public Sector, under a framework of legal security and transparency. 

Oller Abogados has a team of specialists in public sector contracts (public procurement, infrastructure, energy, telecommunications, technology, health, etc.), with more than 22 years of experience, who are always ready to advise international and national clients on their projects in Costa Rica. 

If you already have a project with the public sector of our country, or you are interested in successfully participating in projects promoted by entities in said sector, you can write to the following address: resquivel@ollerabogados.com 

*Roberto Esquivel is the Director of the Public Law Practice at Oller Abogados. He has more than 30 years of experience advising international and national companies, international organizations and public entities. He is also an arbitrator and adjudicator at Dispute Boards, as well as a university professor at the De La Salle University.