The Comptroller General of the Republic insisted on the realization of improvements to the Juan Santamaria International Airport. These have been stalled since March of 2003 because of a conflict with the concession holder Alterra. In a letter to Randall Quiros, Minister of Transport, the Comptroller gave 10 working days to CTAC (the Civil Aviation Technical Council) to order Alterra Partners to restart construction.

In 2001 Alterra signed a contract to manage and modernize the airport for 20 years. The company promised to build a new terminal, more boarding gates and an additional taxiway for planes.

The current dispute stems from a decision by the Comptroller to deny the inclusion of 18.6 million dollars in “financing costs” in rates paid to Alterra Partners by the airlines. This was because in the original contract Alterra stated the financing costs as $ 3.5 million. The Rodriguez administration had authorized this adjustment.

In the ultimatum, the Comptroller General bases the order on the result of an arbitration heard by the Latin American Center for Business Arbitrage. The contract establishes a procedure for the suspension of construction due to natural cause or forces beyond the control of the parties. The tribune did not find any evidence that Alterra used these procedures. In addition, CTAC alleged before the arbitrators that the lack of money for works, was not to causes beyond anyone’s control and that it was Alterra’s fault. So the Comptroller is ruling that there was no legitimate reason for Alterra to suspend the work and orders the CTAC to determine Alterra’s liability for the damages caused by the suspension.

Monica Nagel, Director of Alterra, responded that the company will not re-initiate construction until the government adjusts the financial conditions of the contract. The company will do so when a secure legal framework exists, financial equilibrium exists, and an addendum to the contract is signed. According to the company, the Comptroller modified the conditions of the contract and this caused the banks financing the project to consider that the contract was modified, so they stopped releasing funds.