Costa Rica pauses its Public-Private Partnership Law: key takeaways for companies

The Constitutional Chamber declared several core articles of the bill unconstitutional; the Assembly must correct them before a second debate.

September 9, 2026  |  Legislative File No. 24.009 

The Constitutional Chamber ruled on the optional constitutionality inquiry filed by 20 lawmakers regarding the draft Framework Law on Public-Private Partnerships, and declared several of its core articles unconstitutional. The bill is not dead, but it returns to the Legislative Assembly to be corrected before a second debate. Below is what happened, how we got here and what it means for companies with infrastructure or financing projects in the country. 

What just happened 

• On September 9, 2026, the Constitutional Chamber (Ruling No. 2026034680) ruled on the optional constitutionality inquiry regarding File No. 24.009, filed by 20 lawmakers from 4 legislative factions. 

• The Chamber declared several articles of the bill unconstitutional, mainly for infringing on the autonomy of public institutions, the principle of legal certainty in sanctions and the principles of administrative efficacy and efficiency. 

• Other articles were upheld without constitutional objection, and on several points three of the seven justices dissented. 

• The bill returns to the legislative process: the Assembly must rewrite the flagged articles before submitting it for a second debate. 

How we got here 

• May 18, 2026: the bill was approved in first debate with 47 votes in favor; only the Frente Amplio party voted against it. 

• May 21, 2026: 20 lawmakers from 4 legislative factions filed an inquiry with the Constitutional Chamber, which suspended the legislative process. 

• The ruling party’s own caucus, which had backed the bill, had already announced its intention to send it back to committee for revisions, even before the ruling. 

• The bill creates the National Public-Private Partnership Agency (ANAPP), which would replace the current National Concessions Council. 

What this means for your company 

• Coordination with public entities: if your project depends on coordination with institutions such as ICE, AyA or municipalities, the planned framework will change. It is worth waiting for the corrected text before adjusting your planning. 

• Greater certainty around penalties: the Chamber required clearer rules on the penalty regime for PPP contracts, which is generally a favorable signal for investors since it reduces the scope for discretionary penalties. 

• More equitable bidding processes: the award rules will need to be rewritten to guarantee equal treatment among bidders; it is not advisable to structure competitive processes under the current text. 

• Timelines and procedures: the approval procedures for PPP projects are likely to change from the timelines previously projected. 

What to watch going forward 

• The corrective motions the Legislative Assembly puts forward on the articles declared unconstitutional. 

• The timeline for an eventual second debate, once the text has been adjusted. 

• If your project depends on the new framework, the current public works concession regime remains the applicable route in the meantime. 

Conclusion 

The ruling does not close the door on Public-Private Partnerships in Costa Rica; it precisely identifies what needs to be corrected before the law can take effect. For companies with projects in the pipeline, the recommendation is to keep structuring under the current regime and to actively monitor the legislative correction process. We will keep you informed as the process moves forward. 

This newsflash is for informational purposes only and does not constitute legal advice. For an analysis tailored to your specific project, please contact your relationship partner at the firm.