Alterra Says Airport Expansion Will Restart in January
By Rebecca Kimitch with ACAN-EFE
Tico Times Staff
rkimitch@ticotimes.net

The more than $100 million expansion of Juan Santamar ía International Airport, northwest of San José, will restart in January after nearly three years on hold, airport operator Alterra Partners announced Saturday.

In a demonstration of what the company called “good faith” Alterra investors and financers have approved the restart of airport renovation for January, when the necessary construction equipment will arrive and personnel will be contracted, according to a statement released by Alterra.

Executive Director Mónica Nágel said in the statement that, despite the announcement, the company still maintains the suspension of construction was legal because of a supposed “financial disequilibrium.”

Alterra and the Costa Rican government have been in a contract dispute since March 2003 regarding the airport's financing. Over the past year, the two entities have negotiated a contract addendum that they agreed returns financial equilibrium to the project. However, the addendum must still be approved by the Comptroller General of the Republic.

For months, Alterra officials and Minister of Public Works and Transport Randall Quirós said the airport renovation would not begin until that final approval was made. However late last month the Comptroller announced Alterra had 10 days to restart the massive renovation project. The Comptroller's order was based on a court's decision that lack of financial resources was not a justifiable reason to stop construction (TT, Dec. 2).

Airport renovation has been halted since March 2003, when, as a result of the contract dispute, the international lending institutions financing the project suspended the final $30 million of Alterra's $120 million loan until the dispute was resolved.

After the Comptroller's Nov. 28 announcement, Quirós said Alterra should restart works as a sign of “good faith” before the comptroller has stamped the final seal of approval on the contract addendum.

Representatives of the international banks were in San José last week and following meetings with government representatives, announced their support for restarting renovation immediately (TT, Dec. 9).

“This is a demonstration of the confidence the company has in the Costa Rican state despite the legal insecurity that has characterized this process, which still continues, and despite the changes to the agreements,” Nágel said.

The contract addendum is expected to be formally sent to the comptroller for approval next week. It must also include a work timeline with the goal that construction will not effect use of the airport, particularly during the high season, which started this month and lasts until May.