Caldera Highway Gets the Official Go-ahead

January 18, 2008
San Jose, Costa Rica

We've told you before to keep an eye on Caldera, but things are really happening here…if you're looking to invest, now might be the time.

The Place

Caldera is a small port town on the Pacific, next to popular beach getaway Puntarenas. Major cruise lines and industrial vessels stop here, and tourists are beginning to come, drawn by the picturesque cliffs, tropical beaches, and rainforest preserves. There is plenty of room for growth and development, but getting here can be unpleasant because of the long drive and sluggish traffic.

The government knows that the area has potential. The Caldera highway project was proposed some 30 years ago, and has been discussed many times since then. So when the Costa Rica comptroller general gave the final go-ahead a few weeks ago, many were still skeptical. "Is it really going to happen this time?" they asked. Yes, it is…

The Project

The $230 million project is a big undertaking, consisting of a 48-mile highway that will connect the capital city of San Jose with Caldera, via Ciudad Colon and Orotina. Driving time, now about two hours in heavy traffic, will be cut by 45 minutes.

International consortium Autopistas del Sol won the concession to build the highway in 2005, but negotiations between the government and the banks financing the project caused delays. According to local daily La Nación, now all the required officials and ministries—including transportation officials and environmental authorities—have signed off on the project. As of Jan. 9, Autopistas has 30 months—until July 2010—to complete the highway.

Autopistas representatives say that heavy machinery is already in place to start work on phase one, the section that runs from Ciudad Colon to Orotina. The Public Works Ministry says employees worked through the Christmas holidays to make sure all requirements were met for construction to begin.

The project is being financed by the Central America Economic Integration Bank (BCIE) and a Spanish financial institution, La Caja de Madrid. Autopistas will charge tolls for 25 years to recoup its investment. According to La Nación, the toll will be $2.70 (1,350 colones at current rates) for travel from San Jose all the way to Caldera.

Your Latin America Insider,

Suzan Haskins