Posted by Steve Linder on Mon, Aug 23, 2010
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With the move to open the telecommunications market to international competition, Costa Rica's monopolistic telecom company ICE is racing to get 3G towers and new cell phone and internet services throughout the market before the competitors start offering services. Grupo ICE, which stands for Instituto Costarricense de Elictricidad, has had a monopoly on all electricity needs, telecom needs and internet. Under the new CAFTA regulations, competition is now set to enter the market and start offering services in both telecommunications and internet. New subscriber agreements with major telecom service companies in the US will soon be reality. Now maybe our Verizon, AT&T and other phones will finally work in Costa Rica.
Nearly 100 companies applied to enter the market in Costa Rica but the list of companies was pared down to 6. ICE had traditionally been slow to provide cell phones, wire lines and internet to residents in the country. It was especially difficult for foreigners to get phone service and cell phones. How quickly things have changed. Now ICE is installing new 3G towers all over the country. We recently had a new tower erected in Ojochal as well as in Cortez, near our latest developments in Chontales. Now it is possible to get a new 3G chip that installs in a wireless router, boasting download speeds of 1 Mbs, faster than most domestic DSL in the states. Now we have workers on our construction teams sporting blackberry's, Iphones and the like, checking their text messages and surfing the web from their phones. We are just now getting ready to install a new 3G router at the guest house, allowing faster surfing, the use of phone services like Magic Jack and Vonage. We have been using Magic Jack through our DSL line but the signal is often broken up when a lot of people are using the net at the guest house.
Costa Rica has realized that wireless is the new wave, skipping much of the wired generation that most of us in the states are used to. Though electricity still has to be hard wired, most are now opting for wireless telecom and internet services. Those who make their living via the internet will now find it much easier to quickly upload and download what they need.
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Posted by Steve Linder on Mon, Dec 21, 2009
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Economic Activity - What has been the most important factor in the economic activity of Costa Rica is the cultivation of coffee. Although it no longer has the prominence it once held, coffee production surpassed all other crops in importance in 1829 bringing Costa Rica out of poverty. Even though coffee is still an important export, in recent times
electronics,
pharmaceuticals, software development, and
ecotourism have become the prime industries in the
economy.
Coffee cultivation was first undertaken on a large scale by a small group of planters shortly after Costa Rica's independence from Spain in 1821. Earlier, in the first half of the 18th century Costa Rica's trials with coffee were unsuccessful. Relatively isolated, Costa Rica was on no important trade route nor was it a regular port of call. Furthermore coffee was processed in Chile and shipped to Europe where it was sold as Chilean coffee at prices which seemed exorbitantly high to the Cost Rican planters. However in 1845 a British ship owner gave them direct access to the English market elevating Costa Rica from the country with the worst economic conditions in Central America to far surpassing the other nations in prosperity. The British, in fact, were the principal purchasers of Costa Rican coffee until late in World War II.
Coffea Arabica - Costa Rica grows Coffea Arabica considered to be the most flavorful and smooth of the varieties. Costa Rican coffee is high in both quality and caffeine content. The climate (abundant rainfall and sunshine) and soil (slightly acidic and enriched by volcanic ash) in the central valley has proven to offer near perfect conditions for its cultivation
Processing - Hand picked berries are trucked to processing plants where they are washed to remove the outer layer and to dissolve the gummy substance surrounding the bean. The beans are then laid out to dry in the sun in the traditional manner. The skin of the bean is removed by machine rubbing and the beans are sorted according to size and shape. Coffee is roasted before it is consumed which influences the taste by changing the bean both physically and chemically. During roasting caramelization occurs as heat breaks down starches in the bean changing them to simple sugars that begin to brown, changing the color of the bean. Dark roasts are generally smoother and have a more sugary flavor. Lighter roasts have more caffeine which results in a slight bitterness and a stronger flavor from oils and acids which would otherwise be destroyed by longer roasting..
Quality - Costa Rica is the only country where only the Arabica varieties, by law, may be grown. This is unique in the world. No other country regulates the quality of coffee as completely as does Costa Rica. It is truly the most carefully grown, harvested and processed coffee bean you may find.
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Posted by Steve Linder on Sat, Nov 28, 2009
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Boston Scientific, based in Natick Massachusetts, recently announced plans to double the size of their manufacturing systems in Costa Rica. The company is closing its facility in Doral, Florida eliminating 1400 jobs. The firm is investing over $30 million dollars in the new facility in Alejuela, just outside of San Jose. The company cited the availability of skilled labor and lower labor costs as the primary reasons for the move. Boston Scientific began manufacturing in Costa Rica in 2004, currently employing over 1700 people in the country with plans to double that number in the next two years. The company makes medical devices including a variety of medical delivery systems, stents, catheters, graft materials, suture devices, implantable cardiac remote monitoring units and gastrointestinal related devices. The firm produces nearly 26,000 different items from 17 plants worldwide. The company is publicly traded on the NYSE with sales in 2008 of over $8 billion USD and 24,800 employees worldwide.
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Posted by Steve Linder on Wed, Nov 18, 2009
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Update on Southern Zone International Airport
Although President Oscar Arias signed the order to build the new international airport in the Southern Zone almost two years ago, not much has happened since. We keep checking around Palmar Sur, stopping at the airport there now and asking questions about when to expect the new airport. Recently the staff at the existing airport seemed excited when I asked again.
Financing the Airport: We'd been told that the financing was approved but I recently saw a request for proposals for solicitations for bids to build and operate the airport on a concession basis, similar to current operation for both the Juan Santamaria Airport in San Jose and the Daniel Oduber Quiros Airport in Liberia. In July of 2009, ADC & HAS AIRPORTS in an equal joint venture with its Brazilian partner, Andrade Gutierrez Concessões, completed the acquisition of the contract for the development, investment and operation of the Juan Santamaria International Airport in San Jose, the capital city of Costa Rica. It also owns a 45% interest in the newly awarded 20-year concession for the Daniel Oduber Quiros International Airport, in Liberia, Costa Rica, which serves the growing tourist market in the northwest sector of the country. In both instances, ADC & HAS AIRPORTS is the airport operator as well as an equity investor. On 11/6/09 HAS Development Corporation (HASDC), an affiliate of the Houston Airport System, and Airport Development Corporation (ADC), a Canadian airport developer announced the formation of a long-term strategic partnership with OMERS Strategic Investments (OSI), a member of the OMERS Worldwide group of companies. The partnership operates under the brand name of ADC & HAS AIRPORTS. It is speculated that Costa Rica is soliciting to award a concession for the construction and operation of the new Southern Zone International Airport to the firm.
Recent Press: (July 16, 2009) alDia reported that the Arias administration is in deep negotiations with Panama's new President Ricardo Martinelli regarding the airport.
The airport would not only increase tourism in the Southern zone of Costa Rica, but it would also increase the number of visitors to Panama. Panama President Martinelli has expressed interest in helping Costa Rica get the airport built in a joint venture. The exact details are still being worked out and nothing formally has been announced. However, given the lack of news regarding the project and the current economic condition around the world this is great news for those who are thinking of visiting Costa Rica's Osa region, own real estate in the region or are thinking of purchasing land there.
Rodrigo Arias, Presidential Minister and brother of Oscar Arias, informed President Martinelli that Costa Rica has the land available, identified, surveyed and studied. The only remaining factor is funds to complete the project. The airport would be similar to Liberia International airport in Guanacaste in terms of size and capacity.
"From both a developer's and a tourism sector standpoint this is great news," commented Hanz Cruz, Deputy Mayor of San Isidro del General. "All of Costa Rica will benefit from this but especially the southern zone which is the most beautiful area of the country, but often overlooked by investors and tourists."
The majority of developments are in Guanacaste due to easy access through Liberia. This new airport will help the Southern zone tremendously and the developments there. The airport will also allow tourists to Panama an easy and fast way to visit the western region of the country. The Panama border is approximately one hour from Palmar Sur. Currently to fly into Panama's western region visitors must first fly into Panama City and then out to a regional airport (for example David). This will remove a step and save visitors and residents almost 1/2 day in travel time.
President Martinelli is also analyzing Costa Rica's great medical system and looking at ways to implement a similar system in Panama to help control costs and care for their aging population.
Published Thursday, July 16, 2009 9:39 PM in Al Dia, a leading newspaper in Costa Rica - by Nick Halverson
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Posted by Kristina Welburn on Mon, Nov 16, 2009
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The Costa Rican government is developing plans to begin offsetting all of the country's carbon dioxide emissions, the news service La Nación. Environment and Energy Minister Roberto Dobles said Costa Rica aims to reach this goal using budgeting, laws, and incentives, including measures to promote biofuels, hybrid vehicles, and clean energy. Another key component of the national strategy will be a "C-Neutral" label to certify that tourism and certain industrial practices mitigate all of the carbon dioxide they emit. Under the new certification system, tourists and businesses will be charged a voluntary "tax" to offset their carbon emissions, with one ton of carbon valued at $10, according to La Nación. The money will be used to fund conservation, reforestation, and research in protected areas. To augment the development of C-Neutral, the country is cultivating a carbon certificate market that aims to not only boost carbon capture and storage in the nation's forests, but also help maintain their scenic beauty. In 2002, Costa Rica's carbon dioxide emissions from fossil fuels totaled 5.8 million metric tons, according to the Carbon Dioxide Information Analysis Center, ranking it 108th in the world. Delegates at a recent United Nations meeting in Nairobi, Kenya, noted that they were watching Costa Rica's initiative and hope to replicate it in other regions.
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Posted by Steve Linder on Sat, Nov 14, 2009
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Bridge Update: All the major bridges from Jaco to Dominical are now completed. The new bridge is now open in Parrita though they still have it a bit constricted while they finish the striping and guard rails but you no longer have to wait at the one lane antiquated bridge to cross the river. The bridge across the Sevegre River has now been fully widened to two lanes and only waits for center lane striping and reflectors. The bridge across the Naranjo River just south of Quepos is now fully operational, two lanes wide and even has some break down space. The only bridge left to be completed is the one lane bridge by the town of Hatillo, which was only installed a few years ago and is close to Dominical. This is welcome news for the southern region since an antiquated hammock bridge recently collapsed in the central region on the Tarcoles River. It also speeds the trip to Ojochal.
New Bridge across the Rio Parrita
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Posted by Steve Linder on Wed, Nov 11, 2009
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I traveled twice this week down the southern section of the Costanera Highway from Quepos and Manuel Antonio to Dominical and here is my update. As many of you may know, the road has been a huge engineering project requiring not only hundreds of thousands of cubic tons of stone to build the road bed but also the construction of multiple bridges over the roughly 20 mile stretch that is now nearly complete. The final finish coat of pavement is now being installed on most of the road and at this point only about 3 miles by the Hacienda Baru (just north of Dominical) remain unpaved. Traffic has been shifted to the new road bed by the Hacienda Baru Reserve and the bypass around the small town (pueblito) of Hatillo is also now open so you don't have to drive through the center of Hatillo any more. The drive time this week (November 2009) was less than an hour for the entire stretch. The bypass behind Quepos is also now open with final coat pavement and the only thing missing seemed to be the curb stone along a few points of the sidewalks and the center line and yellow side line painting and reflectors. Much of the guard rail is already in place as well. The paving was contracted to three companies and it is fairly obvious that two out of three have nearly completed their mission, while the third is not far behind. I saw a big increase in tractor trailer traffic along the stretch since the Costanera is a much better alternative than the InterAmerican Highway over the stretch known as the Cerro De La Muerte (passage of death). Truck traffic will increase along the coastal route as more drivers realize they avoid the climb to nearly 11,000 feet above sea level on the Cerro and also avoid having to pass through San Jose on thier trip north. The new toll road from San Jose to Punteranas is also now open from Puntarenas all the way to Orotina. The missing piece between Orotina and San Jose is expected to be completed by early 2010. The toll booth is now open and the toll for automobiles is about 500 colones.
Crew at work on finish top coat paving on the Costanera Highway in southern Costa Rica.
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