Costa Rica’s Construction Regulations require access to water resources and potable water as a prerequisite for construction projects, including condominium developments. The applicable regulations establish different requirements and documentation depending on the source of the water supply. For wells or springs, they refer to water availability or a water-use concession issued by the Water Department of the Ministry of Environment and Energy (MINAE), along with water quality testing to demonstrate potability. Similarly, the requirements established by regulatory authorities for condominium developments include a water availability letter issued by the service provider or, where no public supply is available, documentation relating to water extraction from wells or other self-supply arrangements.
When a development proposes obtaining its water supply from a well, spring, or surface water source, the concession application process before MINAE’s Water Directorate often proceeds simultaneously with other permitting procedures. Alternatively, the development may proceed once the concession has already been granted.
It is important to emphasize that merely submitting an application, or obtaining proof of its filing, only establishes that an administrative procedure has been initiated; it does not demonstrate water availability. The filing of a concession application does not, in itself, establish that the water resource is available or that the competent authority has authorized its use.
Therefore, a pending concession application and a granted concession are two distinct matters. A concession constitutes the administrative authorization allowing the use of water under specific conditions. As a rule, and for most projects, until a favorable resolution has been issued, the developer should not treat a pending application as though the corresponding water-use rights had already been granted.
However, the Water Directorate provides a special certification procedure for certain situations in which an applicant needs to process construction permits for an individual building or condominium development while the concession application remains pending. Obtaining this certification requires a separate application and a technical and legal review; it is not automatically issued upon filing the concession application. For condominium developments lacking access to an existing water supply and potentially eligible for self-supply through groundwater extraction, the Water Directorate establishes requirements that may include water quality analyses, pumping tests, a letter confirming the unavailability of service from the local water provider, and publication of a public notice, as applicable.
What Could This Mean for Condominium Development Permits?
The answer depends on the specific permit, the proposed water source, and the criteria applied by each competent authority. As a practical rule, developers should not assume that proof of filing a concession application can substitute for the required documentation establishing water availability.
In some cases, the concession may need to have been formally granted. However, in certain circumstances, it may be possible to obtain the special certification mentioned above, allowing the condominium permitting process to move forward before the concession itself has been approved.
Beyond the permitting process, self-supply of water can be a viable alternative for condominium developments, but it must be planned based on the actual availability of water resources, water quality, and the necessary authorizations. Filing a concession application is an initial step, but it should not be confused with the approval of the concession or with a guarantee that the development will obtain all required permits. Nevertheless, developers may evaluate the possibility of obtaining a special authorization that would allow them to demonstrate water availability without having to wait for the concession to be formally granted.
From another perspective, developers, property owners, and prospective purchasers are advised to review the administrative file and the resolutions issued by the competent authorities, rather than relying solely on proof that an application has been submitted. It is also advisable to consult legal counsel and professionals specializing in condominium development and water resources before undertaking commitments relating to the development, construction, purchase, or delivery of condominium properties.