San Jose, Costa Rica – The Ministry of Public Works and Transportation decided this afternoon to renew the contract it had with the company Riteve SyC for ten more years for the technical review of vehicles.
The contract would be agreed that Riteve services his exclusively for this period of time.
As explained by Rodrigo Rivera, Deputy Minister of Public Works and Transportation, the decision was made because they believe it is inappropriate to give up the transfer of equipment and facilities of the company that are worth more than $ 25 million.
The first contract between the state and Riteve was stipulated that the company would cede the equipment and infrastructure of the 17 inspection stations to the Government if the contract is renewed.
Rivera as Deputy Minister was in the last hours trying to promote the entry of a new player into the vehicle technical inspection sector. But he said, with current conditions, it was not possible.
It surprises me that the value of the equipment etc is in excess of $25 mil. That is about 1.4 million per facility. Is it me or does that rediculously high?
Also, if it is a govt contract shouldn’t. There been some kind of bid system in place?
Maybe the real questions is who has financial interest in retrieve and how could the DM unilaterally try to promote an new company?