3.+Costa+Rica+Infrastructure+Facts+and+History

Authors: Laura Medina, Clark Beach, Zac Jones, and Cristina Rodriguez


 * Chapter 3: Costa Rica Civil Infrastructure Facts and History **

__**Goal**__**:** In this chapter, a general yet technical idea of Costa Rican infrastructure will be introduced. These events will be chronologically organized to provide a history of the major advances and setbacks. Also, current projects and ideas will be presented. Information gathered from three weeks of visiting different sites in Costa Rica will also be presented, as well as topics pertaining to future Infrastructural development. The chapter will be separated in logically work through the breadth of information.

**3.1 Introduction of Costa Rica Civil Infrastructure**


Costa Rica is known for its rich variety of green areas, its great diversity in fauna and flora, and really admirable self-efficient natural areas. Also, Costa Rica’s infrastructures continue improving and move forward by completing two major highways and having major projects around the country. Maintaining these roads and other important avenues connecting central valleys is still a problem and a major concern in Costa Rica. With an outstanding historical reputation in growth and economic stability, the current projects for maintenance as well as other infrastructural advances in Costa Rica show a continuous growth in all areas, as well as promising future advances; discussed in detail later in the chapter.

To feed the major components of Costa Rica’s economy such as the power and telecommunication sectors is of severe importance for the state, a decrease in foreign trade and lack of reliable equipment back in the early 2000’s made the state to reactivate the railroad which for various years was inactive, not only this was an important advance for locals, but also serves as transportation for tourists and therefore creates a much more reliable system of transport. Costa Rica’s reputation has always been at the top positions in Latin America, for economic stability as well as prosperity.

**3.2 Costa Rica Civil Infrastructure History**
Due to this historic declaration, Costa Rica declared itself as a democracy with a president, parliament or publicly elected Assembly. Early coffee became the main product of Costa Rica, and the coffee oligarchy became the ruling class. Other products such as bananas also helped the economic growth of Costa Rica. All these efforts of agriculture made possible the improvement of roads, telecommunications systems, building roads, railways, electricity and making education available to all. Realizing this, investors around the world created profitable businesses that exist even until now. Today Costa Rica is still a peace-loving country, no army, and many companies such as INTEL, has established a corporation there. Tourism also plays an important role, as Costa Ricans have learned to value and appreciate the benefits that foreign investment can bring. Due to this historic declaration, Costa Rica declared itself as a democracy with a president, parliament or publicly elected Assembly. Early coffee became the main product of Costa Rica, and the coffee oligarchy became the ruling class. Other products such as bananas also helped the economic growth of Costa Rica.All these efforts of agriculture made ​​possible the improvement of roads, telecommunications systems, building roads, railways, electricity and making education available to everyone. Realizing this, investors around the world created profitable businesses that exist even today. Today Costa Rica is still a peace-loving country, no army, however has the highest literacy cup of the world, and many companies such as INTEL, has established its corporation in this country. Tourism also plays an important role, as Costa Ricans have learned to value and appreciate the benefits that foreign investment can bring.

Costa Rica had to borrow heavily from the World Bank to maintain its infrastructure and has a high foreign debt since. To accommodate the needs of costa Rican natives, to implement what already has set costa Rica apart from other neighboring countries, that is the tradition of clean energy via renewable resources has been lately focused on one project called: The hydro-electric project. The hydroelectric project is set to be the largest hydroelectric project in Central America. Already having a good reputation in matters of efficiency of these types of projects, numbers indicate that nearly 93% of Costa Rica's energy is produced from renewable resources, the majority of it from hydro-electric plants, this makes a direct impact on electricity consumers which are said to pay the lowest tariffs in the region.

Costa Rica's present situation has repeatedly highlighted that the major setbacks on the state's economy have been due to the poor and slow creation of investment opportunities, particularly foreign investments. This ambitious pipeline project and future projects coming ahead are particularly made to satisfy the country's demand, growth and development. Most of these creations will have a much greater impact in the long term and has been in the past proven to be effective. Which is why the Costa Rican Electricity Institute was able to get the necessary attention from the government to initiate this long "Reventazon Hydro-Electric Project" due in 2018. Reventazon is the River near the Caribbean basin whose flow will be redirected so the hydroelectric plant obtains all the energy needed from it. Three majors phases for constructing the hydro facility have been established: one for the dam, reservoir and intake facilities, the second phase consisting of the hydraulic facilities and finally the turbines, and powerhouse. Estimated cost of US$1Billon.

One of the biggest challenges of Costa Rica for its economic growth, attract investment and competitiveness lies in the infrastructure in all areas, Costa Rica has an infrastructure backlog of more than 25 years, and many of the existing infrastructure, mainly bridges are in a state really critical. The Central Valley is connected to the Pacific and Caribbean coasts, mainly by: American Highways 1 and 27 (peaceful) and 32 (route to the Caribbean). Highway 27 is a newly constructed path, concession and is a direct connection between San Jose and the various tourist destinations in the Pacific coast. The capacity of the country's airports, Juan Santamaria (SJO) and Daniel Oduber in Liberia, has been overtaken by the growing passenger demand due to increased tourism, and its extension through the figure of private concession has been very slow. The port capacity has also proved very insufficient to keep pace with growth of maritime trade. You do not have sufficient capacity and equipment is in poor condition. The railway system is not working since 1994, except for commuter rail in San Jose and a few lines reactivated by the banana companies in the U.S. capital, in the Caribbean.

**3.3 Costa Rica most famous Civil Infrastructures**





 * With a Capacity of 35,062-seated fans the Costa Rica’s stadium was open to the public in February of 2011. This magnificent work took two years of construction. In Figure [4], its a photo took one month before the Opening Ceremony, celebrated the 26 of March, 2011. The Stadium located in Sabana, Costa Rica was donated by the government of China and have a construction area of 55,000 square meters. [12]






 * Arenal Dam is locate in Lake arenal lit to the west of the Arenal Volcano in Costa Rica. This Dam is also call “The Sangregado Dam”, it’s administered by ICE (Costa Rica’s national Electric Engineering company).


 * Costa Rica has ports in the Caribbean and the Pacific Coast [11] Puerto Limón & Moín on the Caribbean Sea and Puerto Caldera on the Pacific Coast. By now, the modernization of the ports of Limón & Moín in the Caribbean site are in progress.


 * Costa Rica is among the countries with the highest amount of protected land in the world; 25% of the national territory is dedicated to the national park system or biological, marine and land reserves, as well as other natural wildlife areas. [9]




 * Costa Rica offers a solid electrical infrastructure service; over 90% of electricity is generated from renewable sources (hydroelectric, geothermal, biomass and wind). [11] The country will increase its current capacity (up to 3.425 MW) this means 43% by 2018. The private production of electricity increased by more than 250 MW over the next three years.


 * The tectonic plates under Costa Rica shift from time to time, creating anywhere from 2 to 40 earthquakes in a month's time. These tremors are usually rather slight and barely noticeable. Occasionally one will be a little stronger, registering around 5 on the Richter scale, doing little damage other than shaking your feelings of security. [9]


 * Industrial parks for manufacturing facilities can provide more than 350,000 gallons of water per day [11]


 * Costa Rica has a Sustainable Tourism Certification (STC) program; its goal is to classify and certify tourism companies based on how well their operations match a sustainability model. [9]
 * In 2007 the government stated that it wants Costa Rica to be the first country to become carbon neutral by 2021. [10]




 * The airport of Juan Santamaria won the award of “the Best Improvement Award” of Latin American and the Caribbean. [11] Costa Rica has two international airports and over 30 regional airports.



**3.4 Present Infrastructures problems**


As shown in Table A, of the 37,273-km of highways in Costa Rica, approximately 79% are unpaved. Unpaved roads, which typically demand slower speeds on curves and greater stopping distances, pose a safety problem for this region of mountainous terrain, steep slopes and sharp horizontal and vertical curves. During the 6-month rainy season [6] unpaved highways become increasingly slippery and rutting may occur. Further, streams and rivers are observed to rapidly rise and make highways (paved and unpaved) impassible, isolating communities for months at a time. These conditions not only add to the unsafe nature of highways, but also make the highways unreliable & inefficient. Nearly all highways located outside major cities are two-lane undivided roadways without shoulders, passing lanes and adequate passing sight distance. Problems are compounded by the fact that the majority of rural constituents cannot afford motorized transportation and use the edge of pavement for walking and bicycling. Costa Rica has 730-km of waterways, 100% is Seasonally Navigable. Unlike other transportation means, waterways must rely on the environment (rain) and topography (watershed) of the region to make them functional for transportation use. Communities that depend on seasonally navigable waterways may face stage levels that are too low during the dry season or too high and turbulent during the rainy season for them to be a reliable means of transportation. Also, Costa Rica has 30 airports with paved runways (20% of total) and 80% with unpaved runways. It cannot be determined if these airports meet their function as safe, reliable and efficient means for transportation. Finally, 662 of pipelines in Costa Rica, Pipelines for major energy resources (petroleum and natural gas) are not merely an element of trade.


 * Access
 * Equity
 * Integrated Planning
 * Pollution Prevention
 * Land and Resource Use
 * Fuller Cost Accounting

**3.5** Finance and Civil Infrastructure Investment
Costa Rican economy ranks 11th in Latin America, it isn’t a surprise that tourism is the main source of income. Followed by agriculture and electronic equipment export as well. In Guanacaste (a northern providence) there has been an on going “battle” between the side that supports the rapid growth of Tourism (and all its components) and the side that opposes it. The opposition bases its debate with the fact that an uncontrolled growth in Hotel, real state and commercial development, they believe that with the continuous uncontrolled growth in these aspects, the Costa Rican economy could have detrimental economic, environmental and socio-cultural impact in the long run. [22]

The Costa Rican Institute of Electricity (ICE) being one of the leaders in project and technology implementation through geothermal plants utilizes loans and tariff collection to be able to finance itself for it various projects. Banks being one the most benefited by the Costa Rican laws that reduce the lending by international entities to local-public infrastructure projects. Trust funds as well as leasing arrangements are only some of the ways banks were able to provide the necessary monetary requirements that private companies asked for. As this helped the private sector, Law 8660 has now limited these lending mechanisms; an effect of the uncontrollable manner they were developing. Intense and controversial debate is currently still on going, this in order to come up with new regulation for private sector participation. [24]

[|China] is interested in building an oil refinery in Costa Rica and investing in the Central American nation’s infrastructure and telecommunications sectors, Commerce Minister Anabel Gonzalez said. [25]Telefonica SA, Spain’s largest phone operator along with a Mexican wireless provider called America Movil, are currently preparing to enter Costa Rica’s cellular phone market; a very important move in the nation’s foreign investment. Independent Power Producers and Build Operate transfer mechanism regulate private sector’s financing, and limits its investment potential. Costa Rica used to be known primarily as a producer of bananas and coffee; half of the investments of these made by the U.S. Today, however, these have been accompanied by the export of cocoa, sugar, beef and pineapple. In recent years the country has successfully attracted foreign investment, especially Intel, which employs about 3,500 people at its plant in chips valued at $ 300 million. Other multinationals based in the country are: Abbott Laboratories, Baxter Healthcare, St. Jude Medical, Boston Scientific, Hospira, Centers for HP (with over 6000 employees and development centers), Amazon, Procter & Gamble, Bank of America, Western Union Sykes, Panduit, among many others. In 2006 Intel microprocessor plant was responsible for 20% of total exports and produced 4.9% of GDP.

Environmental conservation, in terms of its degradation and the preservation of Tropical resource is a shared ideal for the U.S. and Costa Rica; this created a bond that throughout the years has become stronger. In the present, the United States accounts for over 50% of export, imports and tourism in Costa Rica; these also a major impact in foreign investment.

**3.6** **Cultural Impact and Social Integrity**
An excellent example of how a Country can exploit its natural resources to develop a successful system that regulates the cultural standards of living is a clear representation of Costa Rica. It enjoys the highest standard of living in all of Central America, and is ranked within the lowest poverty levels too. Costa Rica’s success peaked in the early 90’s and continuously remained at an average growth of 5.2 percent, this allowed for a very solid economy, this same economy was a fundamental component for the infrastructural development all around the country. [24]

International integration at an infrastructural level remains within Costa Rica’s most important elements of development, reports from the international co-operative alliance show that by comparison with the neighboring countries, Costa Rica is amongst the highest in infrastructural development. The nature of the strategic growth mechanism used in Costa Rica (led by an export dependent infrastructure quality) damages the nation’s global market adaptation.

Throughout the years, Costa Rica has faced opposition to many of the infrastructure development ideas by private and public sectors. Environmentalist as well as locals living around the sites of proposed project construction at first believed that the natural areas were going to be severely and irreversibly affected by these projects led by companies (i.e. ICE) and their plans to build different projects (i.e. geothermal plants, etc.). As it was shown with many educational workshops as well as integration of the residents living the surrounding areas most of the projects of infrastructure would be of great benefit to them but most importantly the environment would not be significantly affected. This however took time and money. Educating, training, and integrating society to the new Costa Rica, one that exploits its resources to the maximum while maintaining its environmental integrity was a crucial factor in this co-operative approach. [24]

**3.7 Conclusion**
Costa Rica is a Central American country known internationally for it’s long democratic and pacifist. The fact of not having an army and to have achieved indisputable successes in the fields of education, health and the creation of protected areas for environmental conservation have often been pointed out as something unusual in the developing world.

What can one conclude by analyzing all this aspects? To provide a more sustainable transportation system in Costa Rica, government will need to cooperate in adopting standards and policies that are unique on each region, and consider the locals and their cultures, and are easily translated and implemented. Well-planned transportation systems aid in providing access to markets, health care and education, and often opens the door to other infrastructure improvements. The private sector compensates the basic quality of infrastructure by developing a system in which specific fundamental parameters are analyzed, these include an array of elements that can be addressed such as the entities that calibrate equipment, as well as the organizations that are in charge of awarding quality certifications. Multinational companies in many areas of science and engineering are established in Costa Rica; over 200 of these global companies are settled all around. In 2010 Costa Rica was ranked among the highest in Political Stability in Latin America making it today, the most ought Central American destination for foreign investment. Looking back in the early years of this continuously growing country, a dependence on coffee and bananas export begun the search for more ways of exploiting its natural potential. The collaboration of the government as well as the development of fundamental laws that were able to control the growth of different sectors of the market to overcome an uncontrollable private sector development, was a key factor that has now contributed to the high standards of living and low poverty that cocoons and stabilizes a nation that has learned to accept change, be trained and educated to adapt to the construction of plants, roads, and different infrastructural projects that collaborate conduce Costa Rica to a successful future.

**3.8 Reference**
[1] WIKIPIDEA,. "Costa Rica." . WIKIPEDIA, 2012. Web. 14 Jul 2012. .

[2] Bureau of Western Hemisphere Affairs,. "Background Note: Costa Rica." //U.S. department of state//. Bureau of Public Affairs, 2011. Web. 28 May 2012. .

[3] Zuñiga, Eduardo, and Arias & Muñoz. "Costa Rica set to build largest hydro-electric project in Central America by 2018." //LIQ-Latin Infrastructure quarterly//. LIQ-Latin Infrastructure quarterly, n.d. Web. 14 Jul 2012. .

[4] Bureau of Western Hemisphere Affairs,. "Background Note: Costa Rica." //U.s. department of state//. Bureau of Public Affairs, 2011. Web. 14 Jul 2012. .

[5] Johnson, Paul. PAVA Foundation. Questionnaire response. November 20, 2003

[6] Table A- CIA. "Central America and Caribbean: Costa Rica ." //World factbook//. Central Intelligence Agency, 2012. Web. 14 Jul 2012. .

[7] Mather, John R., et al, Average Monthly and Annual Surface Air Temperature and Precipitation Data for the World; Part 1: The Eastern Hemisphere, 1981, pgs. 52-56.

[8] Srinivas, Harl. "GUIDING PRINCIPLES for Sustainable Transportation." //Sustainable Transportation//. Urban Environmental Management, November 4th, 2003. Web. 14 Jul 2012. .

[9] WIKIPEDIA,. "Outline of Costa Rica." //Wikipedia, the free encyclopedia//. WIKIPEDIA, 23 May 2012. Web. 14 Jul 2012. .

[10] VivaCostaRica.com,. "Fast Facts." //Via costa rica//. VivaCostaRica.com, 2003. Web. 14 Jul 2012. .

[11] CINDE,. "Costa Rica Infraestructure." //Departamento de Investigación CINDE//. CINDE, Agosto, 2011. Web. 14 Jul 2012. .

[12] Kerman, Mahan. //360 cities//. N.p., 2011. Web. 14 Jul 2012. .

[13] Williams, Adam. "Costa Rica’s 35,000-seat National Stadium opens." //Tico Times//. Tico Times.net, March 25, 2011. Web. 14 Jul 2012. .

[14] Lee, Fuey-Yin. "LA SATISFACCIÓN Un trabajo de calidad mundial." //ARKITEKTON//. Revista Arkhitekton, n.d. Web. 14 Jul 2012. .

[15] Hickcox, Jeff. "Costa Rica's New San José - Caldera Highway." //VIP Member in Atenas//. WeLoveCostaRica.com, 2012. Web. 14 Jul 2012. .

[16] Linder, Steve. "Costa Rica Blog." //Pacific Lots, costa Rica//. Pacific Lots, Jan 27, 2010. Web. 14 Jul 2012. .

[17] Saylor, Claire. "Costa Rica’s Highway to the Sun: A 31 Year Saga Comes to a Close." //Costa Rica pages//. Costa Rica News, December 29th, 2009. Web. 14 Jul 2012. .

[18] Arenal, net. "Lake Arenal Dam." //Arenal net//. 2011, n.d. Web. 14 Jul 2012. .

[19] GREEN LLC,. "In Costa Rica." //Green, Global renewable energy education network//. N.p., 2011. Web. 14 Jul 2012. <http://www.greenworknow.com/education>.

[20] Martin, Javier, and Carl Hartman. "BRIEF HISTORY OF PORT LIMON." //Costa Rica Info travel//. Costa Rica Info travel, 2007. Web. 14 Jul 2012. <http://www.costaricainfotravel.com/articles/port_limon_history.html>.

[21] World Port Source,. "Puerto de Caldera." //World Port Source//. World Port Source, 2005-2012. Web. 14 Jul 2012. <http://www.worldportsource.com/ports/CRI_Puerto_de_Caldera_1462.php>

[22] Morales, Luis, and Lawrence Pratt. "Analysis of the Daniel Oduber Quirós International Airport, Liberia, Guanacaste." //CREST//. CREST, n.d. Web. 14 Jul 2012. <http://www.responsibletravel.org/resources/documents/Coastal-tourism-documents/Analysis_of_the_Daniel_Oduber_Quirós_International_Airport_Liberia_Guanacaste.pdf>.

[23] Monteverde Info,. "Monteverde Cloud Forest Reserve." //Monteverde Info//. N.p., 2011. Web. 14 Jul 2012. <http://www.monteverdeinfo.com/monteverde.htm>.

[24] Document of the World Bank,. "Costa Rica Competitiveness Diagnostic and Recommendations." //World Bank: Poverty Reduction and Economic Management Departmen//. Finance & Private Sector Poverty Reduction and Economic Management Department LATIN AMERICA AND CARIBBEAN, 2009. Web. 14 Jul 2012. <http://siteresources.worldbank.org/INTCOSTARICA/Resources/CR_Competitiveness_Vol1.pdf>.

[25] Mourast, Fabiola, and Eric Sabo. "China Eyes Costa Rica For Refinery, Infrastructure Investments." //Blomberg//. BLOOMBERG, Sep 21, 2011. Web. 14 Jul 2012. <http://www.bloomberg.com/news/2011-09-22/china-eyes-costa-rica-for-refinery-infrastructure-investments.html>.

[26] liberiacostaricainfo.com,. "Costa Rica- Facts and Figures." //Liberia//. liberiacostaricainfo.com,, 2009. Web. 14 Jul 2012. <http://www.liberiacostaricainfo.com/CostaRicaFacts.html>.

[27] Cordero, Jose, and Paus Eva. "Working Group on Development and Environment in the Americas." //Foreign Investment and Economic Development in Costa Rica: The Unrealized Potential//. Working Group on Development and Environment in the Americas, 2008. Web. 15 Jul 2012. <http://ase.tufts.edu/gdae/Pubs/rp/DP13Paus_CorderoApr08.pdf>.

**3.9** **Figures**
[1] Jubel, Michael. "Videos Puerto Caldera." //CDM Energy S.A.//. N.p., 18 February 2010. Web. 15 Jul 2012. <http://www.cdm-energy.com/?p=274>.

[2] Rueda, Amelia. "Amelia Rueda." //Al Aire//. N.p., n.d. Web. 15 Jul 2012. <http://www.ameliarueda.com/nuestra-voz/nuestra-voz.aspx?Page=20>.

[3] Howard, Christophert. "Retirees and can now take advantage of Costa Rica’s newly improve airport." //Live in Costa Rica Blog//. N.p., 18 February 2011. Web. 15 Jul 2012. <http://www.liveincostarica.com/blog/2011/02/retirees-and-can-now-take-advantage-of-costa-rica’s-newly-improved-airport.html>.

[4] Kerman, Mahan. //360 cities//. N.p., 2011. Web. 14 Jul 2012. <http://www.360cities.net/>.

[5] Hickcox, Jeff. "Costa Rica's New San José - Caldera Highway." //VIP Member in Atenas//. WeLoveCostaRica.com, 2012. Web. 15 Jul 2012. <http://www.welovecostarica.com/public/2263.cfm>.