Contact Us to Advertise your Costa Rica Property
By Rebecca Kimitch
Tico Times Staffrkimitch@ticotimes.net
The complicated and time-consuming permitting process necessary for construction in Costa Rica threatens foreign investment, is bogging down one of the country's most important environmental-protection agencies and may drive companies to resort to bribery of public officials, developers here recently alleged.
In response, President Abel Pacheco and the Minister of Economy, Industry and Commerce, Gilberto Barrantes, this week called on the country's institutions to improve their efficiency and competence in administrative procedures.
Barrantes said it is “ridiculous” that some construction permits require the submission of 37 different plans to government agencies.
The Costa Rica Construction Chamber agrees.
The chamber published a full-page advertisement in the daily La Nación last month calling the defective permitting process a “real crisis” in the sector, which last year accounted for an investment of $1.5 billion and 400,000 jobs in Costa Rica , according to the organization.
HOME building may become easier: A new rule says local governments are now responsible for environmental permits for new houses measuring less than 100 square meters. Tico Times/Mónica Quesada
The result has been the closure of businesses, a loss of employment and a decrease in foreign and national investment, according to the advertisement.
Tourism Minister Rodrigo Castro this week cited the lengthy construction permitting process as a reason for the shortage of hotel rooms during the approaching holiday season.
“A foreign business wants to open a hotel, but the permitting process takes four to five years,” he said.
This affects a company's bottom line, as officials must keep financial interest in the project during that wait, he added.
According to other government officials, the long wait also causes some developers to proceed without permits.
The value of obtaining approved permits also has lead to accusations of corruption and bribery among government officials.
A financial crimes court last week ordered the Mayor of the Municipality of La Unión in Cartago, east of San José , and two Municipal Council members to three months of preventive prison while they are investigated for allegedly demanding payments in exchange for granting permits for urban development projects, according to La Nación.
If convicted on bribery charges, Mayor Guillermo Zúñiga, and council members Asdrúbal Araya and Marcos A. Zúñiga, would face two to eight years in prison, according to the report.
The preventive detention order came in response to accusations filed by an engineer of a development company who said the three functionaries conditioned the approval a school renovation project on a “gift” of ¢12 million ($26,000), La Nación reported.
The Construction Chamber maintains the permitting crisis stems from the fact that the institutions involved do not systematically provide concrete answers or actions in a timely manner.
Barrantes said beginning in January, 2005, the government will begin training government agencies how to reform and review regulations to avoid duplication of processes, promote efficiency and reduce costs, regarding not only construction permits but all administrative procedures.
The slow construction permitting process also received a boost with a new rule that the Technical Secretariat of the Environment Ministry (SETENA) no longer has to give its environmental approval for houses smaller than 100 square meters (1076 square feet) or for the remodeling of existing houses or offices, La Nación reported.
Such permission will now be granted on the municipal level.
The change is expected to reduce SETENA's workload from 150 requests for permission each week to 50 and greatly reduce the workload that has bogged down the agency. Because of the huge workload, lack of a computerized system and other resources, approval by SETENA can take years.
SETENA officials have told The Tico Times in the past that the long wait prompts some developers to start without their approval (TT, July 2).
Tico Times Staffrkimitch@ticotimes.net
The complicated and time-consuming permitting process necessary for construction in Costa Rica threatens foreign investment, is bogging down one of the country's most important environmental-protection agencies and may drive companies to resort to bribery of public officials, developers here recently alleged.
In response, President Abel Pacheco and the Minister of Economy, Industry and Commerce, Gilberto Barrantes, this week called on the country's institutions to improve their efficiency and competence in administrative procedures.
Barrantes said it is “ridiculous” that some construction permits require the submission of 37 different plans to government agencies.
The Costa Rica Construction Chamber agrees.
The chamber published a full-page advertisement in the daily La Nación last month calling the defective permitting process a “real crisis” in the sector, which last year accounted for an investment of $1.5 billion and 400,000 jobs in Costa Rica , according to the organization.
HOME building may become easier: A new rule says local governments are now responsible for environmental permits for new houses measuring less than 100 square meters. Tico Times/Mónica Quesada
The result has been the closure of businesses, a loss of employment and a decrease in foreign and national investment, according to the advertisement.
Tourism Minister Rodrigo Castro this week cited the lengthy construction permitting process as a reason for the shortage of hotel rooms during the approaching holiday season.
“A foreign business wants to open a hotel, but the permitting process takes four to five years,” he said.
This affects a company's bottom line, as officials must keep financial interest in the project during that wait, he added.
According to other government officials, the long wait also causes some developers to proceed without permits.
The value of obtaining approved permits also has lead to accusations of corruption and bribery among government officials.
A financial crimes court last week ordered the Mayor of the Municipality of La Unión in Cartago, east of San José , and two Municipal Council members to three months of preventive prison while they are investigated for allegedly demanding payments in exchange for granting permits for urban development projects, according to La Nación.
If convicted on bribery charges, Mayor Guillermo Zúñiga, and council members Asdrúbal Araya and Marcos A. Zúñiga, would face two to eight years in prison, according to the report.
The preventive detention order came in response to accusations filed by an engineer of a development company who said the three functionaries conditioned the approval a school renovation project on a “gift” of ¢12 million ($26,000), La Nación reported.
The Construction Chamber maintains the permitting crisis stems from the fact that the institutions involved do not systematically provide concrete answers or actions in a timely manner.
Barrantes said beginning in January, 2005, the government will begin training government agencies how to reform and review regulations to avoid duplication of processes, promote efficiency and reduce costs, regarding not only construction permits but all administrative procedures.
The slow construction permitting process also received a boost with a new rule that the Technical Secretariat of the Environment Ministry (SETENA) no longer has to give its environmental approval for houses smaller than 100 square meters (1076 square feet) or for the remodeling of existing houses or offices, La Nación reported.
Such permission will now be granted on the municipal level.
The change is expected to reduce SETENA's workload from 150 requests for permission each week to 50 and greatly reduce the workload that has bogged down the agency. Because of the huge workload, lack of a computerized system and other resources, approval by SETENA can take years.
SETENA officials have told The Tico Times in the past that the long wait prompts some developers to start without their approval (TT, July 2).
1 Comments:
Great investment opportunity at Costa Rica Pacific Coast, Preconstruction condos in costa rica ,
Condo sales in costa rica, Retirement property in costa rica. Visit us for more info at: http://www.ramadajaco.com/
Post a Comment
<< Home