Rodrigo Arias, Costa Rica's Minister of the Presidency, supports the Oil Refinery
Is China using its $1.8 trillion in foreign exchange reserves, the world’s largest such cache of foreign currency, to further its political and diplomatic goals, despite promises that it would not do so?
Are they using these reserves to win the support of the people, by first building the $84 million, new National Soccer Stadium in Parque La Sabana for the Costa Rica Sports and Recreation Institute (ICODERA)? And gain support from the economy-trouble government by again using its muscle when it agreed to buy $300 million of Costa Rican bonds as they did with the US in their one trillion dollar bond buying?
Even if the global economy seems to be grinding to a halt, investment from China continues to pour into Costa Rica. In the last six months China has given over $300 million in aid to Costa Rica, as well as other incentives, including 20 scholarships each year for Costa Ricans to study in China. China first bought [in 2008], $150 million in state bonds, with a term of 12 years and carrying an interest rate of 2 percent per year and again in January, 2009, another $150 million in bonds
All the documents show that the Chinese State Administration of Foreign Exchange, which is a SECRETIVE ORGANIZATION and a steward of China’s foreign exchange reserves are the ones funneling the bucks! Hummm!
Are all the above just a preamble toward something more major? Could it be the one billion-plus dollar refinery to be built in the town of Moin, on the Caribbean coast that China wants to finance? A project that has been under scrutiny by the Comptroller’s Office, an independent [watchdog] bureau that monitors government actions to make sure they are within the law.
The Comptrollers Office claims that the refinery agreement signed in late 2008 with Costa Rican Oil Refinery (RECOPE) to form a joint venture with the China National Petroleum Corporation (CNPC) was not valid. This joint venture would violate the RECOPE legal monopoly on oil refining and distribution.
No doubt the refinery would dramatically increase the country’s current refining capacity and not counting the 5000 jobs it would create in the financial trouble Central American country, plus it would save the country 200-300 million in its oil bill. However, and proving Costa Rica abides by their own working laws, which is undergoing some major problems now with the CAFTA or Free Trade Agreement.
Now speaking of free trade, China SUDDENLY has become now the second largest trade partner of Costa Rica. Costa Rica is the second largest trade partner of China from Central America. The bilateral trade between the two countries reached 2.87 billion U.S. dollars in 2007. China’s imports from Costa Rica hit 2.3 billion U.S. dollars, up 32 percent, and its exports gained 39 percent to 570 million U.S. dollars.
In the US, China bond buying has many US politicians sending up red flags, that China is using these investments as leverage to increase their political and diplomatic goals that sometimes clash with Washington’s priorities.
I guess the next question is, What is it going to cost Costa Rica in the long run?
I truely hope that the refinery does not go through. Having visited Costa Rica, I fell in love with the love the Costa Rican people feel for their natural world around them. Being that they are the third most environmentally friendly country in the world (first in the Americas) I am amazed that they would consider allowing such a thing as an oil refinery in this paradise, not to mention doing buissness with a country that is known for it's lack of environmental respect as well as respect for it's own people. I again pray that this does not happen as I feel that it will open the door to polluting the purest place (in every way) that I have ever been.