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| Botched Project Closures: Who’s To Blame? |
| Friday, 16 May 2008 | |
 (TBT) Last week, the Ministry of the Environment and Energy’s (MINAE) Environmental Tribunal invited members of the press to the closing of a list of high-end tourism development projects along Guanacaste’s coastline, worth near a billion dollars.The convocation, made after a four-day sweep of inspections by the Tribunal, mostly within Santa Cruz, asked that the names of the projects “be kept strictly confidential, as they cannot be divulged for legal reasons.” Within hours, the information was leaked, and the closings became moot, as Tribunal President José Lino Cháves backtracked saying the tribunal would issue cautionary measures within a week. Among those slated for closure were the $300 million-dollar Hyatt Azulera Project in Brasilito, the $500 million Mar Serena/Canyon Ranch project in Playas Zapotillal and Nombre de Jesús, the housing project Tamuz del Tamarindo; the Hotel Bahía del Sol, in Playa Potrero; and a condominium project on Punta San Francisco, which is part of the development known as Tamarindo Preserve. It came as a great surprise, not only for the developers, but also for key members of President Oscar Arias’ cabinet. One source from the Ministry of the Environment said the phones were ringing off the hook. The legal faux pas by the Tribunal had developers and their lawyers scrambling to stave off the embarrassment. None had been notified of any violations. “The hotel was full, and I was calling around the night before, asking what was I to do with all my guests,” said Arnoldo André, representative of the beachfront Hotel Bahía del Sol in Playa Potrero. Anil Khotari, Chief Executive Officer of Global Financial Group, the developers behind the Hyatt Azulera project was equally mystified. “The Azulera project has not received any communication from any of the (environmental) agencies,” he said this week. “No closure has been executed, nor have we been formally notified of any such procedure by the Ministry of Environment,” said Jeffrey A. Remily, Project Manager for the Mar Serena-Canyon Ranch Project. Paradoxically, the closings have become a case in point for a freshly issued government review by the Comptroller General’s office that lists the administering of the country’s maritime zone as one of the four most deficient areas of government.  Photo Zoraida Diaz: Environmental Tribunal members in Tamarindo last week, including Tribunal President Jose Lino Chaves (left) and Secretary Jorge Bonilla (2nd left). Of these, and taking into account that the maritime zone draws the biggest investment in the country, the lack of a coherent policy in the protection of the maritime zone stands out as one of the areas most threatening to the country’s socio-economic development. “At least 11 national public entities intervene, as well as 19 municipalities and four municipal district councils,” states the document. “The dispersion and multiplicity of competences and obligations related to the planning, administration, vigilance and control of the maritime zone assigned to the different national and local entities, have caused difficulty in articulating and consolidating a system that effectively meets those functions…” It is that “multiplicity of competences” that had government heads rushing to contain the potential damage to President Aria’s open-door policy towards tourism investment following the tribunal’s actions. “This doesn’t help to uphold the climate of government goodwill; instead, it creates a sense of instability for the investors,” said Jorge Woodbridge, Minister of Competitiveness and the man in charge of streamlining government institutions and reducing the legendary red-tape. “Of course, I am pro-environment, but things must have equilibrium,” added Mr Woodbridge. What was resoundingly clear was that no one questioned the intent of the tribunal, merely its procedures. “I think we have to be firm in regards to following the law, but no one is above the procedures, especially when we are seeking credibility in terms of the equilibrium between development and environment,” said Minister of Tourism Carlos Ricardo Benavides. When asked what he would tell developers, Mr Benavides was quick to calm troubled waters.“We are a government that is behind them, and we are going to support them as long as they follow the rules,” he said. The Minister of the Environment Roberto Dobles was cautious when referring to the threatened closures. “We have to wait until we have obtained a detailed analysis from the inspections—and I am certain we will find that many (projects) are within the current legislation.” Mr Remily, Project Manager for the Mar Serena/Canyon Ranch project, says the development is currently in the environmental permit process. The Canyon Ranch brand has won multiple accolades including being a 10-time winner of the Condé Nast Traveler Best Destination Spa Award, and plans to build its first international resort in Playas Zapotillal and Nombre de Jesús on a 255-hectare beachfront property. It will also include 172 units and a world-class spa and fitness facility. “What President Arias and all of his ministers are demanding regarding the environment and its protection is precisely consistent with what we and any responsible developer would do,” said Mr Remily when questioned about possible environmental violations. The sometimes contradictory road between encouraging development and preaching sustainability demands a delicate balance, Minister Benavides readily admits. “Undoubtedly when I am asked what is the most important challenge this country faces in terms of tourism, I tell them that it is not only for tourism, but that the country’s most important challenge to development is sustainability,” he says. “How to combine the two is part of our success, and I think the country continues to learn how to do this.” The Comptroller’s report does suggest the government create a directorate that upholds the sustainable administration of the maritime zone, and that maybe the Instituto Costarricense de Turismo’s (ICT) seemingly contradictory roles as promoter of tourism and its mandate to approve coastal regulatory plans should be reviewed. “It is important that there is a well established North,” says Minister Benavides, “and I think the North established by President Arias is very clear; this helps us not get lost." “This is why the goals are intact and what has to be improved is communication,” he said, “and to be more constant in finding that equilibrium.” Comments (0)
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