Dear A.M. Costa Rica:
The Las Crucitas international arbitration case has taken a bizarre twist. Environmentalists (Apreflofas), who, along with others, were successful in their efforts in having Costa Rica cancel the mining project, now have applied to the International Center for the Settlement of Investment Disputes to provide input as a “non-disputing party.”
It would seem that this group does not place any faith in the current Solís administration or its appointed legal team. Will this group ever accept the decisions or directions of a duly elected Costa Rican government? They opposed the Las Crucitas project throughout the Pacheco, Arias and Chinchilla administrations, and they refused to accept the Sala 1V’s decision which approved the project.
They share the responsibility in having the “Final” word on the case being delivered by the International Center for the Settlement of Investment Disputes and the financial consequences that may result. The question I have is, who is running Costa Rica, the Solís administration or Apreflofas?
In addition, the shameful accusations by those opposed to Las Cructas, alleging improprieties clearly directed towards Infinito’s major shareholder, an individual whose charitable foundation has contributed greatly to society, reflects the true intent of a group who will utilize any method whatsoever in a quest to obtain its goal.
Unless common sense prevails, this expensive legal case will extend over a period of two years but, will ultimately be decided on the question: Did Costa Rica violate the terms of the Canada-Costa Rica bilateral trade agreement when it annulled /canceled the Las Crucitas project after Infinito had secured all the necessary permits during the terms of three separate Costa Rican administrations together with constitutional court approval.
Last week Moody’s Investors Service cut Costa Rica’s credit rating to junk status, and this week Costa Rica is seeking additional funding from the World Bank, the same organization that administers the International Center for the Settlement of Investment Disputes. The capital sought may very well be required to pay some or all of an award in favor of Infinito Gold.
The royalties and taxes that Costa Rica would have received from Las Crucitas would have provided a significant contribution in reducing the country’s debt obligation.
British Columbia, Canada