Opposed Views After Renewal of Riteve’s Contract for 10 More Years

Riteve's Costa Rican Contract renewed for 10 more yearsAs of June 1st, a new set of regulations has come into effect based on the requirements established by Consejo de Seguridad Vial (COSEVI) which Riteve will have to adjust for by training their staff, calibrating their machines properly and opening up even more branches across the country.  After the recent renewal of their contract for another 10 years, Riteve is studying the possibility of opening new vehicle technical revision stations.

Berlioth Herrera, RITEVE’s spokesperson says, all of COSEVI’s demands have been met:

“In fact the new manual includes some changes requested by the company, for example, regarding the lights. Today, having a burned lightbulb is considered a misdemeanor, because these circumstances are easily detectable by road traffic officers,” said the spokeswoman.

For many, the re-establishment of Riteve as the country’s sole operator constitutes a monopoly that is underhanded by the Government, however Vice Minister Rodrigo Rivera responds to such accusations by stating that, if they did not allow Riteve to stay for another 10 years, then the country would’ve had to face an arbitration by Transal. S.A., the firm contracted by Riteve as part of their legal action to fight for fair rates as there has not been an increase to the rates charge per vehicle, in the past 10 years.

This process could have cost the Costa Rican government $280 million in case the arbitration was lost. If the contract was not renewed the state was required to give up the transfer of the Riteve’s current facilities and equipment, all worth an estimated $25 million.

Before renewal of the contract, President Laura Chinchilla, said she would consider options to open the market to new operators but apparently, the decision was influenced by economic pressure undertaken by the company.

Manrique Oviedo, legislator for the Acción Ciudadana political party, also agreed that the easiest decision at least in the short run, was to extend Riteve’s contract but later expressed feeling “in awe, because the president said in campaign that she would take care of ending the monopoly”. Chinchilla proposed the opening to outside operators during her political campaign in January 2010.

The revision, which is mandatory for all vehicles will also see increased fares as of January 2013 but the company promises this will come along with an improvement in the quality of their service.


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