Costa Rica: Electricity reform fails and government infrastructure project faces scrutiny

Costa Rica's legislative landscape is facing significant shifts following the official archiving of a long-discussed electricity market modernization bill. The failure of the reform, which had been under deliberation for three decades, triggered a sharp rebuke from President Laura Fernández. The President criticized opposition lawmakers, specifically the National Liberation Party (PLN), accusing them of aligning with far-left elements to block energy sector modernization.

Separately, Planning Minister Karla Morales defended the ‘Ciudad Gobierno’ project before the Legislative Assembly. The initiative aims to consolidate 35 public institutions into a single complex in central San José to reduce reliance on private rentals, potentially saving an estimated $26 million annually. However, legislators raised concerns regarding the financing mechanism, which involves a 30-year lease agreement with the Central American Bank for Economic Integration (BCIE).