The Constitutional Chamber Redefines the Legal Framework For National Electricity Institute
Eugenia Monge, Paralegal at ARIAS Costa Rica and Public Procurement expert, presents this article on the legal framework applicable to the public procurement processes promoted by the National Electricity Institute (hereinafter referred as "ICE”).
The Constitutional Court (hereinafter referred as "Court”) reaffirmed the validity of the Law on the Strengthening and Modernization of Public Entities in the Telecommunications Sector for the public procurement processes promoted by ICE. This law establishes a more flexible contractual regime tailored to the market competition in which ICE operates.
The Court’s decision redefines the legal framework under which ICE must conduct its procurement processes, excluding it from several provisions of the General Public Procurement Law.
Ruling No. 22483–2024 declared the unconstitutionality of Article 135, subsection (c) of the Public Procurement Law No. 9986, as well as Articles 1, 2, 68, 69, and 70 of the same law, but only insofar as their application to ICE is concerned.
The main basis of the decision lies in the incompatibility of those provisions with the international commitments assumed by Costa Rica under the Free Trade Agreement with the United States, Central America, and the Dominican Republic (Law No. 8622 of 2007). The Treaty recognized the need to modernize and strengthen ICE as part of the market-opening process in the telecommunications and energy sectors.
This ruling takes on particular significance in the current context, as ICE is in the midst of procurement process 2025XE-000492-0000400001 for the adquisition of the 5G network. Due to the Constitutional Chamber’s decision, this process is governed by Executive Decree No. 35148-MINAET, "Regulation to Title II of the Law on the Strengthening and Modernization of Public Entities in the Telecommunications Sector,” which provides for shorter deadlines and differentiated rules compared to the General Public Procurement Law and its regulation.
Moreover, this ruling sets a precedent regarding the procurement regime applicable to state-owned enterprises operating in competitive markets. Along these lines, the National Insurance Institute filed an unconstitutional action seeking to be excluded from the regime of the General Public Procurement Law, which is still under review.
Accordingly, for companies interested in participating in procurement processes promoted by ICE, it is essential to thoroughly understand ICE’s special legal framework and the interaction between both regimes.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.
The Constitutional Court (hereinafter referred as "Court”) reaffirmed the validity of the Law on the Strengthening and Modernization of Public Entities in the Telecommunications Sector for the public procurement processes promoted by ICE. This law establishes a more flexible contractual regime tailored to the market competition in which ICE operates.
The Court’s decision redefines the legal framework under which ICE must conduct its procurement processes, excluding it from several provisions of the General Public Procurement Law.
Ruling No. 22483–2024 declared the unconstitutionality of Article 135, subsection (c) of the Public Procurement Law No. 9986, as well as Articles 1, 2, 68, 69, and 70 of the same law, but only insofar as their application to ICE is concerned.
The main basis of the decision lies in the incompatibility of those provisions with the international commitments assumed by Costa Rica under the Free Trade Agreement with the United States, Central America, and the Dominican Republic (Law No. 8622 of 2007). The Treaty recognized the need to modernize and strengthen ICE as part of the market-opening process in the telecommunications and energy sectors.
This ruling takes on particular significance in the current context, as ICE is in the midst of procurement process 2025XE-000492-0000400001 for the adquisition of the 5G network. Due to the Constitutional Chamber’s decision, this process is governed by Executive Decree No. 35148-MINAET, "Regulation to Title II of the Law on the Strengthening and Modernization of Public Entities in the Telecommunications Sector,” which provides for shorter deadlines and differentiated rules compared to the General Public Procurement Law and its regulation.
Moreover, this ruling sets a precedent regarding the procurement regime applicable to state-owned enterprises operating in competitive markets. Along these lines, the National Insurance Institute filed an unconstitutional action seeking to be excluded from the regime of the General Public Procurement Law, which is still under review.
Accordingly, for companies interested in participating in procurement processes promoted by ICE, it is essential to thoroughly understand ICE’s special legal framework and the interaction between both regimes.
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.