OAS seeks compensation of $46 million for cancellation of Costa Rican concession

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OAS seeks compensation of $46 million for cancellation of Costa Rican concession

The Brazilian company Construtora OAS is seeking compensation of $45.9 million to the Government of Costa Rica after the cancellation of the U.S. $523.7 million San Jose - San Ramón highway concession contract.

Costa Rican Planning Minister, Roberto Gallardo, said to the local media that they received a letter from the company and that the Government will evaluate the request, but said that OAS has to present documents to ratify those expenses.

Costa Rican President Laura Chinchilla cancelled the 30-year contract on April 22. It had originally been awarded to OAS on March 12. "I recognize that it is neither possible nor appropriate to push the project forward in the face of opposition from diverse sectors of the population," said Chinchilla.

Opponents of the highway complained of three things: that the project was of national interest and therefore it should not be concessioned, that the one-way tariff being too high and that Pedro Castro, head of Costa Rica's MOPT, had a conflict of interest awarding the project to OAS because he had done consultancy work for them before.

The road construction was awarded in 2004 for $295 million to another company, but works never began because of various bureaucratic and legal problems. This project has been one of the most controversial issues in the three years since the Government of President Laura Chinchilla.

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