Costa Rica's highway projects are consistently exceeding their budgets and timelines due to a lack of competition among construction firms [1].
This trend suggests a systemic failure in the procurement process, where a small group of contractors holds significant leverage over public infrastructure. When few firms compete for bids, the government faces higher costs and reduced accountability for project delays.
Four construction firms, operating across two consortiums, have dominated the country's highway contracts [1]. This concentration of power has contributed to a pattern of financial overruns and scheduling failures across multiple regions.
The San Carlos region has become a primary example of these infrastructure struggles. One particular project in the area is identified as one of the longest-delayed road projects in the country [2].
Recent developments provided a small measure of progress for the region. The Comptroller General's Office recently gave approval for "…the central section of the new highway to San Carlos" [2]. While this approval allows work to move forward, the project remains a symbol of the broader inefficiencies plaguing the national road network.
Officials and analysts said the limited number of eligible bidders is a primary driver of these issues [1]. Without a diverse pool of contractors, the state lacks the competitive pressure necessary to keep costs stable and ensure that deadlines are met.
The ongoing delays in San Carlos and other regions continue to hinder transport and economic growth. As more contracts are awarded to the same small group of firms, the risk of further budget inflation remains high [1].
“Costa Rica’s highway projects are consistently over budget and behind schedule.”
The concentration of infrastructure contracts within a small circle of firms creates an oligopolistic environment. This reduces the incentive for contractors to innovate or maintain strict budgets, as the government has few alternative partners to turn to when projects fail. Until Costa Rica expands its pool of qualified construction firms or reforms its bidding process, public works are likely to remain expensive and delayed.
