SETENA Knocks Back $333 Million Project (PUNTA CACIQUE)
The Ministry of the Environment and Energy has rejected an environmental study for a $333 million tourism development on the northern Pacific coast.
The Ministry’s National Technical Environmental Secretariat (or SETENA) has denied permission for developers to move ahead on the project known as Punta Cacique, which will include two hotels and a golf course.
The SETENA resolution rejects what it terms a flawed environmental study, citing 14 technical impediments on the headland, south of Playa Hermosa. It also points to an appeal before the Sala IV, or Constitutional Court, from a private citizen who opposes the project.
The 198-hectare property is owned by Revolution LLC, the company set up by Steve Case, Chairman of Exclusive Resorts and the Co-Founder of America Online. He is understood to have paid a reported $42 million for the property late in 2005.
In rejecting the study, SETENA points to an ”absence of vital aspects for an adequate environmental evaluation of the project.”
“…due to the developer’s failure to comply, what proceeds is to not continue with the environmental evaluation and archive the file of the Project Punta Cacique,” the resolution says.
SETENA gives the developers three days to respond and to file an appeal before the Minister of Environment and Energy.
The so-called technical impediments include the lack of detailed information on the systems to be used and the location of three proposed treatment plants.
They also cite a lack of a de-salinization system that the developer proposes to use; a lack of supporting geological maps for the project; a lack of definition of works to protect a stream from poor natural drainage; and a lack of a plan to deal with seismic threats.
Without an environmental study, work on the project cannot proceed. The project is understood to include a Miraval Life In Balance resort, based on a similar venture in Tucson, Arizona, as phase one of his project. A One and Only five-star hotel, (part of Kirzner International Ltd) would be part of a second phase.
However, representatives of the nine companies behind the project confirmed late Thursday they would appeal the resolution.
“The company, together with its environmental consultants is working to clarify the 14 objections,” said Pedro Muñoz, a legal representative for the development companies.
Mr Muñoz, who is also a councilor at the Municipality of Liberia, was adamant all objections to the project would be clarified in due time.
“We have the conviction (that all will be overcome),” he said adding that although he could not divulge additional details regarding the rebuttal, he did concede they were working to respond to SETENA in the shortest possible time.
Mr Muñoz confirmed Mr Case’s company Revolution LLC was the parent company of a group of holding companies.
“I believe there are nine companies which represent 22 fincas,” he added.
If many of these impediments can be put right, there are two objections that may be more difficult to redress.
SETENA argues there is no attached legal basis to explain the amalgamation of 22 different properties to make a private urbanization project, using existing public roads.
More seriously, SETENA says that during an inspection it observed that the road that led to the beach Playa Penca had been closed off to the public by metal fencing and the presence of private security guards.
“…the study does not point which is the public access to the beaches of Punta Cacique and/or the mechanisms proposed so that Costa Rican citizens can enter to enjoy the public area in those beaches,” says the resolution.
SETENA also mentions the lack of an attempt by the developers to present the project to a community already impacted by the perceived over-use of water in the area: “…there is no attempt by the developers to reach out to the community to determine whether there is community support for the project.”
Within the resolution, SETENA mentions opposition to the project by a private citizen and attaches to the file the petition the Playa Hermosa resident filed before the Ministry’s System of Conservation Areas (SINAC) to declare Punta Cacique with a conservation category.
The denial comes hard on the heels of another appeal filed before the high court in previous months by citizens of Coco and Playa Hermosa and environmental activist group Confraternidad Guanacasteca demanding the right to quality water.
Although the appeal was not filed against the Punta Cacique Project, it did list it as one of the projects of concern asking to have the project’s well concessions voided.
The community objected to the projected wells’ capacity of 57 liters per second from the Panama Aquifer, considered a fragile aquifer because of its proximity to the beaches.
“The water issue is one of the points to be answered,” said Mr Muñoz, who added that the concessions were valid until 2009.
In a description of the project filed alongside the environmental study impact, Punta Cacique is presented as a low-density eco-tourism development to be developed over six years and divided into three phases.
The project envisions developing 30 per cent of the total area with a projected occupation of a maximum of 2080 people, or 10.5 people per hectare.