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Res. 00047-2006 Tribunal Contencioso Administrativo Sección IV · Tribunal Contencioso Administrativo Sección IV · 14/06/2006
OutcomeResultado
The Court affirmed ICE's unilateral termination of the electricity purchase agreement due to the plaintiff's missed deadlines, without due process violation, and reiterated the need for a framework law or legislative concession to exploit public waters for hydroelectric purposes.El Tribunal confirmó la rescisión unilateral del contrato de compra de energía por incumplimiento de plazos de la empresa actora, sin violación del debido proceso, y reiteró la necesidad de una ley marco o concesión legislativa para explotar aguas públicas con fines hidroeléctricos.
SummaryResumen
The Administrative Court analyzed an electricity purchase agreement between a hydroelectric company and ICE. It held that the contract is administrative in nature, not private, as it involves a public service and the exploitation of a public domain asset (water). The ruling extensively cites Constitutional Chamber decision 10466-2000, which establishes that water resources are part of the national heritage, inalienable and imprescriptible, and that their exploitation requires a framework law or express legislative concession. It notes that after the repeal of the SNE Law, there is currently no framework law for granting new hydroelectric concessions, so interested parties must petition the Legislative Assembly. In the specific case, the court upheld ICE's unilateral termination of the contract due to the plaintiff's non-compliance with deadlines, finding no due process violation because multiple hearings and appeals were provided.El Tribunal Contencioso Administrativo analiza un contrato de compraventa de energía eléctrica entre una empresa hidroeléctrica y el ICE. Se determina que el contrato es de naturaleza administrativa, no privada, por involucrar un servicio público y la explotación de un bien demanial como el agua. Se cita extensamente la resolución 10466-2000 de la Sala Constitucional, que establece que los recursos hídricos son parte del patrimonio nacional, inalienables e imprescriptibles, y que su explotación requiere una ley marco o concesión legislativa expresa. Se señala que, al derogarse la Ley del SNE, no existe actualmente una ley marco para el otorgamiento de nuevas concesiones hidroeléctricas, debiendo los interesados acudir a la Asamblea Legislativa. En el caso concreto, se confirma la legalidad de la rescisión unilateral del contrato por parte del ICE ante el incumplimiento de los plazos por la empresa actora, sin violación del debido proceso, dado que se le otorgaron múltiples audiencias y recursos.
Key excerptExtracto clave
VII. Before analyzing the nature of the contract, it is necessary to transcribe part of resolution number 10466-2000, issued by the Constitutional Chamber of the Supreme Court of Justice [...] regarding the nature of our water resources and their use: "V.- Nature of the legal asset involved: National Heritage (Public Domain).- Under our Political Constitution, national heritage comprises the assets defined in constitutional articles 6, 50, 89 and 121(14); [...] It is important to note that these assets enjoy special protection, so they cannot be appropriated by private individuals or even by the Public Administration; [...] The exploitation of natural resources imposes, at the constitutional level, their rational use (adequate, planned), for the benefit of the present and future inhabitants of the country (third-generation rights). [...] In conclusion, there is currently no framework law regulating the exploitation of water resources for electricity production, so for the granting of new concessions, interested parties must go to the Legislative Assembly."VII. Es preciso, antes de analizar la naturaleza del contrato de marras transcribir parte de la resolución número 10466-2000, dictada por la Sala Constitucional de la Corte Suprema de Justicia [...] relativa a la naturaleza de nuestros recursos hídricos y su utilización: V.- "Naturaleza del bien jurídico involucrado: Del patrimonio de la Nación (demanio público).- En los términos de nuestra Constitución Política, el patrimonio nacional se conforma por los bienes definidos en los artículos 6, 50, 89 y 121 inciso 14) constitucionales; [...] Es importante señalar que estos bienes gozan de especial protección, de manera que no son susceptibles de ser apropiados por particulares y ni siquiera por la Administración Pública; [...] La explotación de los recursos naturales impone, con rango constitucional, un uso racional de los mismos (adecuado, planificado), para beneficio de los actuales y de los futuros habitantes del país (derechos de la tercera generación). [...] En conclusión, actualmente no existe una ley marco que regule lo relacionado con la explotación del recurso hídrico para producción de energía eléctrica, por lo que, para el otorgamiento de nuevas concesiones deben los interesados acudir a la Asamblea Legislativa."
Pull quotesCitas destacadas
"La explotación de los recursos naturales impone, con rango constitucional, un uso racional de los mismos (adecuado, planificado), para beneficio de los actuales y de los futuros habitantes del país (derechos de la tercera generación)."
"The exploitation of natural resources imposes, at the constitutional level, their rational use (adequate, planned), for the benefit of the present and future inhabitants of the country (third-generation rights)."
Voto 10466-2000 de la Sala Constitucional, citado en considerando VII
"La explotación de los recursos naturales impone, con rango constitucional, un uso racional de los mismos (adecuado, planificado), para beneficio de los actuales y de los futuros habitantes del país (derechos de la tercera generación)."
Voto 10466-2000 de la Sala Constitucional, citado en considerando VII
"Actualmente no existe una ley marco que regule lo relacionado con la explotación del recurso hídrico para producción de energía eléctrica, por lo que, para el otorgamiento de nuevas concesiones deben los interesados acudir a la Asamblea Legislativa."
"Currently there is no framework law regulating the exploitation of water resources for electricity production, so for the granting of new concessions, interested parties must go to the Legislative Assembly."
Voto 10466-2000 de la Sala Constitucional, citado en considerando VII
"Actualmente no existe una ley marco que regule lo relacionado con la explotación del recurso hídrico para producción de energía eléctrica, por lo que, para el otorgamiento de nuevas concesiones deben los interesados acudir a la Asamblea Legislativa."
Voto 10466-2000 de la Sala Constitucional, citado en considerando VII
"Estamos frente a un contrato administrativo, y por ende regido por el derecho administrativo, definido como el acuerdo de voluntades, generador de obligaciones y por ello sinalagmático, celebrado entre un órgano del Estado [...] para satisfacer necesidades públicas."
"We are dealing with an administrative contract, therefore governed by administrative law, defined as a synallagmatic meeting of the minds that creates obligations, entered into by a State organ [...] to satisfy public needs."
Considerando VII
"Estamos frente a un contrato administrativo, y por ende regido por el derecho administrativo, definido como el acuerdo de voluntades, generador de obligaciones y por ello sinalagmático, celebrado entre un órgano del Estado [...] para satisfacer necesidades públicas."
Considerando VII
Full documentDocumento completo
VI.In the case file we have that the parties entered into a contract for the purchase and sale of electric energy, in which the company Hidroeléctrica Taus undertook to begin the construction works of the generating plant immediately upon signing the contract and to commence operations thirteen and a half months thereafter. It was also agreed that for the contract to be effective, it had to be ratified by the then Servicio Nacional de Electricidad, and that if the specified dates could not be met, ICE had to be informed in advance of the causes of the delays that gave rise to the non-compliance. Once this occurred, the plaintiff, i.e., the seller of the service, could request from ICE an extension for each of the two specified dates, which could be extended for up to one year from the start of construction and up to two years for the commencement of operations. The agreement was signed on September 29, 1994, and its ratification by the Servicio Nacional de Electricidad occurred on November 1, 1993.
Subsequently, on July 24, 1994, the parties signed an addendum to the contract, in which clause 4 of the agreement was modified, with a term equal to that of the purchase and sale contract. It is necessary to clarify first that this last modification to the contract in no way alters the initially established deadlines for the start of the work and the entry into service of the hydroelectric plant, nor anything regarding the extensions, since said amendment referred to the length of the three-phase distribution line type KA 34.5 Kv, and that it was to be built and financed by the seller in accordance with the standards indicated by ICE, and once built, it would be transferred to ICE with its rights-of-way at no cost. Now, having indicated the foregoing, we must determine from when the deadlines agreed upon in the agreement begin to run: whether from the day after its signing or from the ratification by the then Servicio Nacional de Electricidad.
It must be noted here that, in this contract, ratification is required for it to have full effect; without it, the agreement is non-existent. It is worth mentioning, although in the case file we are discussing the effects and breaches of a contract and not an administrative act as such, and by way of illustration, that article 145 of the Ley General de la Administración Pública subjects the effects of such acts to effectiveness requirements and states precisely in subsection 4 that: "When the act requires approval from another body, as long as this has not been given, it shall not be effective, nor may it be communicated, challenged, or executed." Thus, returning to the case under analysis, if for some reason the competent authority does not endorse the contract, it cannot be executed, which is why, on this point, the Tribunal disagrees with the criterion expressed by the trial judge, in the sense that the deadlines began to run from the day after the signing of the agreement, as it is reiterated that the rights and obligations agreed upon by the parties become enforceable only once the agreement is ratified.
Having clarified this, we must therefore take the start date of the work as November 2, 1993, and the entry into operation as December 16, 1994. In accordance with clause 12 of the contract, the seller, if it could not comply with these agreed-upon dates, was required to inform ICE in advance of the causes of the non-compliance, with the possibility of requesting an extension of up to one year for construction and up to two years for the start of operations. From the foregoing, it is deduced with absolute clarity that the request for an extension of deadlines had to be made before they expired, that is, the seller had to request the extension of the construction deadline before November 2, 1994, and of the entry into operation before December 16, 1994. However, and as has been proven in the case file, the first extension request was made on February 21, 1995, when all the deadlines had already passed, a request to which ICE did not respond, and it was not until March 15, 1996, that a new request was made by a person not authorized to do so, generating at that moment a discussion regarding the person who held the capacity of representative of the plaintiff.
A parenthesis is warranted here to note that, in addition to the breach concerning the deadline for requesting contractual extensions, the plaintiff company violated clause 29 of the agreement, as it did not inform the co-contractor of the change of representative. Now then, it requested the extension again on July 4, 1996, to which the defendant asked for proof of standing, which it presented on August 27 of that year, proving that the legal representative of the company had been replaced. From the foregoing, it is deduced that the requested extensions were indeed made extemporaneously, as they were made outside the deadlines established contractually. Although, as stated, the affirmation made in the first instance regarding the moment from which the deadlines should begin to run is not shared, the truth is that this is ultimately of no major importance, since the plaintiff's requests, in either case, whether taking the start date as the day after the signing of the contract or its ratification, were always extemporaneous. Nor is the plaintiff's assertion that there was an extension consented to by ICE acceptable, as this is not evident from the case file.
VII.Before analyzing the nature of the contract in question, it is necessary to transcribe part of resolution number 10466-2000, issued by the Sala Constitucional of the Corte Suprema de Justicia, at ten hours and seventeen minutes on November twenty-fourth, two thousand, regarding the nature of our water resources and their use:
V.- "Nature of the legal good involved: From the Nation's heritage (public domain).- In the terms of our Constitución Política, the national heritage is made up of the goods defined in constitutional articles 6, 50, 89, and 121 subsection 14); these are the territorial waters, the coasts, the airspace, the continental shelf, the insular shelf, the natural resources and riches of the water, soil, and subsoil, the natural beauties, the right to a healthy and ecologically balanced environment, the historical and artistic heritage of the Nation, the forces that may be obtained from the waters of the public domain in the national territory, the coal deposits, the sources or deposits of petroleum, hydrocarbon substances, deposits of radioactive minerals, wireless services -what is known today as electromagnetic space-, railways, docks, and airports that are in service. It is important to note that these goods enjoy special protection, such that they are not susceptible to being appropriated by private individuals, nor even by the Public Administration; nor to being destined for purposes other than those which determine their own essence and nature.
Of course, their protection -in the terms deemed necessary- and administration corresponds to the State in the name of the Nation (volume III Actas de la Asamblea Nacional Constituyente No. 168, p. 468). The constitutional norm opted for legislative control in cases where it is possible to dispose of those goods, or else, to incorporate new goods for public uses; however, some of these goods cannot be subject to declassification even by the legislator, since by their singular nature they have received a special constitutional classification that exempts them from being in the commerce of men.
The Nation's goods may be subject to rational exploitation by the State or by private parties "in accordance with the law or through a special concession granted for a determined time and subject to the conditions and stipulations established by the Asamblea Legislativa" (subsection 14 of article 121 of the Constitución Política). The case law of this Chamber -judgment 06240-93-, examined the possibility of the Asamblea Legislativa resorting to the technique commonly known as the issuance of a framework law, to comply with the requirement of the constitutional norm. In what is of interest, this Chamber stated:
"In this case, the Asamblea Legislativa invests the Public Administration with the power to grant specific concessions, a competence that, of course, does not include that of entirely substituting the former's function, as will be discussed below. In this hypothesis, the delegate may be any entity in the public sphere -both the Poder Ejecutivo itself, the normal body for administrative contracting (article 140 subsection 14) of the Constitution), and any other decentralized entity of the Public Administration- but not, as proposed in the bill, a simple deconcentrated body within an Executive ministry." In accordance with what has been set forth, the special nature of the national heritage has as its particularity the necessary and indissoluble link to the public use of the goods that the concessionaire -whether public or private- destines or requires for its development and exploitation, in such a way that these are understood to be definitively incorporated into the public domain and enjoy, for this reason, the characteristics proper to this regime, of being unattachable, imprescriptible, and inalienable.
Due to the implications that the exploitation of the Nation's goods by private parties has, the legislator must, in the absence of express authorization in each case, draft a framework law that provides the country's system with suitable guarantees regarding the reasonable exploitation of the good in question. It should not be lost sight of that the special classification of the Nation's goods makes sense only insofar as the right to a quality of life within a healthy and ecologically balanced environment is guaranteed for all inhabitants. The exploitation of natural resources imposes, with constitutional rank, a rational use of them (adequate, planned), for the benefit of the country's current and future inhabitants (third-generation rights).
V.Of other public domain goods of the State.- The State's goods are characterized by being of its exclusive ownership and because they have a special legal regime; they integrate the unit of the State and, together with its political, economic, and social organization, pursue the satisfaction -on an equal footing- of the general interests; their final objective is to achieve, fully, the common good. This is the principal reason justifying the existence of an impediment, at least in principle, to the free disposal of this category of goods. The special regime that shelters them, however, does not cover all public goods equally; the greater, lesser, or non-existent coverage will depend on the type of good in question. This is why the doctrine of public law speaks of various types of goods belonging to the State. Costa Rican legal tradition has structured its own regime based on these ideas, so that these goods, understood in the broadest sense of the concept, are classified into those in the public domain by nature or by provision of law, the private goods of the State, real rights over goods of others (easements (servidumbres)), economic or financial rights (such as State securities or bonds), and communal goods, among others.
Domain or dominial goods, as they are also known, have that character by virtue of a legal classification (afectación), which determines their subjection to a specific public purpose, as it marks the destiny of the good to public use or service or to another determinant purpose that justifies its domain status. Thus, the classification is the link, whether by formal act or not, through which a public good is integrated into the national heritage by virtue of its destiny and the corresponding legal provisions. This entails, as a logical consequence, that only by law may they be deprived of or have modified the special regime that regulates them, declassifying them, which means separating them from the public purpose to which they are linked. It requires an express and concrete legislative act, such that there is no doubt whatsoever of the legislator's will to remove a determined and individualized good from the public domain, without a generic declassification being possible, and much less an implicit one; that is, in this matter, there cannot be an "open type of declassification" that the Administration, through its discretionary acts, completes. It must also be noted that any declassification, as it originates from a legislative act, is subject to ordinary jurisdictional controls.
VI.On the regulations regarding water resources: The State exercises its full and exclusive dominion over the waters of its territory (Article 6 and subsection 14) of Art. 121 Constitución Política). The exploitation of the waters that intervene in the hydrological cycle -Hydrology is the science that deals with terrestrial waters, their modes of appearance, their circulation and distribution, their physicochemical properties, their interactions with the physical and biological environment, and their reactions to human action- requires, as previously stated, a framework law that regulates it or an express act of legislative authorization. For the exploitation of the resource in an energy production project (hydroelectric), there is required, first, a concession for the use of public domain, and then, a concession for the exploitation of a public service. The first, due to what has been said regarding the special protection of the good, not only because it is essential for life, but also in relation to the exploitation of its force, which is impossible without adequate protection of the resource itself.
The Ley de Aguas No. 276 of August 27, 1942 -prior to the current Constitution, but in accordance with it- establishes the public domain status of the waters; similarly, Law No. 258 of August 18, 1941 -the creation law of the Servicio Nacional de Electricidad (SNE)- states that the force that may be obtained from the waters, the electrical forces, and any other source of energy are of the public domain, thus completing the framework of protection alluded to. The second concession arises by express provision of subsection 14) of article 121 of the Constitución Política. This modality of concession is referred to the utilization of the waters for energy production, and includes the transmission, transformation, and distribution of the energy obtained from the waters. Law 258 established that the competent authority to grant these concessions was the Servicio Nacional de Electricidad (articles 6 and 34) and dealt with regulating in detail the assumptions under which it was possible to grant and exploit the concession, the rights and obligations of the concessionaires, the object of the contract, and the term of the concession.
These norms, moreover, were enriched by the integration of the provisions of the Ley de Aguas, which complemented those precepts in many fields, such as, for example, in orders of preference. All these legal provisions are applicable to the legal operator, in a sort of integration of law and "as long as they do not contradict the precepts of the aforementioned law number 258", since in case of conflict, the one that specifically regulates the matter must prevail. Notice that Article 17 of the Ley de Aguas reaffirms that for the utilization of public waters "the authorization shall be granted by the Servicio Nacional de Electricidad -in accordance with law 258 of August 18, 1941". It should not go unnoticed that both normative bodies - Ley del SNE No. 258 and Ley de Aguas No. 276 (the latter amended by laws Nos. 2332 of April 9, 1959, 5046 of August 16, 1972, and 5516 of May 2, 1974) are prior to the current Constitución Política and to Decreto Ley number 449 of April 8, 1949, which entrusted ICE with "the rational development of the physical energy-producing forces that the Nation possesses, especially hydraulic resources" (article 1).
Evidently, this good was given in concession to ICE under a state monopoly regime, with the purpose that its activity would allow "promoting the greatest well-being of the people of Costa Rica" (article 1 of the Decreto Ley), to whom it guarantees the enjoyment of the goods that belong to them, based on the provision of "public service at cost" (article 2 of Law number 2199 and article 2 of number 3226, of October 25, 1963).
Through law 7200 of September 13, 1990, the autonomous or parallel generation of electricity by companies and rural electrification cooperatives, which may be integrated into the national electric system, was authorized. This law was amended by No. 7508 of April 30, 1995. With the enactment of these two laws, the former competence of the SNE in this matter regained importance, to the point that article 5 provided that the SNE shall have the authority to grant concessions destined to exploit power plants of limited capacity, up to a maximum of twenty thousand kilowatts (20,000 Kw) and for a term no longer than twenty years; it may extend, modify, or transfer those concessions, without requiring legislative authorization; but this requirement shall be indispensable when the exploitation exceeds twenty thousand kilowatts or the acquirer has approved concessions that, when added to the new one, exceed that quantity.
Law 7503 of August 9, 1996 "LAW OF THE AUTHORITY FOR THE REGULATION OF PUBLIC SERVICES", transformed the SNE into an autonomous institution called the Autoridad Reguladora de los Servicios Públicos. Article 68 of this Law provided for the repeal "of Law No. 258 of August 18, 1941, and its amendments", and Transitional Provision V, second paragraph, indicated that whenever the SNE is mentioned, including its relationship with national waters, it should be read as Ministerio de Ambiente y Energía. The ARESEP, according to its current law, has competence in relation to the supply of electric energy in the stages of generation, transmission, distribution, and commercialization (art. 5), that is, its law regulates everything related to the public service of electric energy from any source. The Ley de Aguas (article 176), starting from the amendment to Transitional Provision V of Law 7593 of August 9, 1996, certainly attributed competence to MINAE to grant concessions destined to utilize public waters for the production of electric energy.
However, the mere assignment of competence cannot be assimilated to a regulatory framework law for the process of granting the concession (requirements for the concessionaire, obligations, classifications, etc.), and even less so when goods are involved that cannot be declassified even by ordinary law. A free interpretation of the regime regulating this matter could lead to a "de facto" declassification of the Nation's goods, which is clearly untenable. The Chamber considers that upon the repeal of Law 258, everything concerning water concessions for energy exploitation was left without a framework law, precisely the assumption dealt with in subsection 14) of article 121 of the Constitución Política. The framework law that this Chamber has indicated as possible in this matter must have clear, concrete regulations regarding the concession to be granted, as it deals with the exploitation of the Nation's goods; it is not by chance that the constituent power itself established that the law should deal with "conditions and stipulations", which are nothing other than a detailed normative framework given the nature of the good involved.
It is important, for the purposes of this ruling, to indicate that the concept of a framework law is consistent with the Constitution's Law. The jurisprudential development of this Chamber allows it to sustain that the framework law that is lacking could not be similar to Law No. 258 of August 18, 1941, and its amendments, nor to the current Ley de Aguas, as those "frameworks" would be insufficient to achieve adequate regulation of the rational exploitation of the water resource. It is not enough to establish that a specific basin has hydroelectric potential, as the repealed SNE Law required; it is necessary to plan the installation of such projects so that, among other aspects to consider, it is taken into account that future generations -whose rights are protected by the Constitution's Law- are not prevented from enjoying the water resource and other natural resources, such as, for example, for the preservation of fauna, ecosystems, the climate, ensuring navigation, and scenic and artistic enjoyment, among others.
The Rio Declaration on Environment and Development of June 14, 1992, established as its third principle that "the right to development must be fulfilled so as to equitably meet developmental and environmental needs of present and future generations"; the fourth principle provides that "In order to achieve sustainable development, environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it". According to the foregoing, the repealed SNE Law and the old Ley de Aguas are far from being the model framework law currently required by the Constitution's Law. For the reasons stated, the Chamber deems inadmissible interpretations that suggest that the Ley de Aguas is the required framework law for the exploitation of the "force of the waters" by private parties, as it has never been the regulatory normative framework for this matter; its content was limited to complementing certain provisions on the matter, at a historical moment, without it being possible to now give it, in the absence of adequate regulation, a function it does not have.
Nor does this Chamber find that there exists a genuine public interest in departing from the previous conclusion, since ICE retains the possibility of exploiting both the force of the waters and other forms of energy generation to meet national demand, and in an equal condition are found – without this implying a valuation of those contracts- those concessionaires duly authorized in a timely manner by the SNE to carry out that activity "in limited capacity". In any case, there still subsists for the private party interested in this type of activity the possibility of approaching the Asamblea Legislativa to request the concession of its interest, and it will be up to it to establish the opportuneness of regulating the matter, without this being able to be validly done by the legal operator or the Poder Ejecutivo through its regulatory power. Finally, the Chamber does not enter into discussing the thesis of the Ministra del Ambiente y Energía, according to which that institution can deal with extending concessions already authorized, as they all have a maximum term established by the law that gave rise to the concession; determining whether or not it is possible to extend them in time, without violating the principle of legality developed by the constitutional order, especially when the concessionaire has not managed to renew the contract with ICE, which has modified the method for selecting projects (see Reglamento al Procedimiento de Selección de Proyectos under the first chapter of Law 7200, published in La Gaceta 52 of March 14, 2000) is a matter pertaining to the declaration of which norm is applicable or if there exists a consolidated legal situation, which must be debated in administrative venue, all without prejudice to the legality control that the ordinary judge must exercise.
It must be borne in mind that the terms of those concessions -up to 25 years- are not short, and within those terms there must occur -through the energy sale tariff- the recovery of the investment and the obtaining of a reasonable profit, without it being possible to recognize private parties an indefinite right to the extension of the concession, insofar as the Constitution itself provided that the "special concession granted" is for a limited time. In conclusion, there currently exists no framework law regulating what is related to the exploitation of the water resource for electric energy production; therefore, for the granting of new concessions, interested parties must resort to the Asamblea Legislativa. What the Ministerio de Ambiente y Energía currently has, by express provision of law, is the function of control and oversight of the concessions granted by the SNE, which implies, even, and following the procedures established in the Ley de Aguas, the Ley del Ambiente, and the Ley General de la Administración Pública, the possibility of declaring the extinction, expiration, or nullity of the concessions; moreover, of course, the power to intervene by dictating the adjustment measures that prove necessary in the environmental impact studies, so that the activity does not affect the environment in any way, which shall be of obligatory compliance by the concessionaires.
In this sense, the content of article 20 of the Ley Orgánica del Ambiente is illustrative, as it provides that "The Secretaría Técnica Nacional Ambiental shall establish instruments and means to follow up on compliance with the resolutions of the environmental impact assessment. In cases of violation of its content, it may order the stoppage of the works…" We wished to make the foregoing clear in order to conclude that in the sub lite we are dealing with an administrative contract, and therefore governed by administrative law, defined as the agreement of wills, generating obligations and therefore synallagmatic, entered into between a State body, in exercise of the administrative functions that correspond to it, with another administrative body or a private party or administered person, to satisfy public needs. We are not dealing with a private agreement of wills, and its vicissitudes are to be resolved based on the civil norms cited by the plaintiff.
We cannot ignore that the contract in question has as its object a public service; one of the contracting parties is an autonomous institution of the State and, improperly or not, a sort of authorization or concession for the exploitation of an energy source is being granted. As is clear from the resolution just cited, the aquifer mantle is not a good susceptible to appropriation or use by private parties. If one wishes to generate hydroelectric energy, one is utilizing the flow of a river, one is using a public good, the interested party is being granted permission to exploit goods that are outside the commerce of men, and one could not assert that it is a private contract, especially taking into account that ICE is not selling energy, but buying it, which is very different. It is recognized that this contract was not signed under a public bidding procedure, and that this could have led the plaintiff into confusion, but without entering into analyzing whether this is constitutional or not, as it is not within the competence of this jurisdiction, the truth is that the law in force at that time permitted it, since later, with the reform introduced by Law 7508, article 21, it was determined that such purchases had to be carried out through a public bidding procedure, which reaffirms the thesis that we are dealing with an administrative contract.
Furthermore, note that the agreement had to be ratified by another state entity, namely the then Servicio Nacional de Electricidad, which clearly determines the public character of the contract. The concession for the exploitation of power plants had to be granted by that authority, and the tariffs regulated by it, so it is impossible to assert that this contract is a pure and simple agreement, governed by the autonomy of will, and that the rules and norms were set by the parties. There existed, and exists, an entire administrative regulation for the purchase of electric energy, in which several public entities or bodies intervene; therefore, there is no doubt that the repeatedly cited contract is of an administrative nature. It is necessary to indicate that the Reglamento of Law 7200, Decreto 20346-MIRENEM of March 21, 1991, reaffirms the foregoing by stating, specifically in article 15, that "As a prerequisite to signing the contract for the sale of energy to ICE, the producer must have the project feasibility report approved by ICE, have obtained the respective concession from the Servicio Nacional de Electricidad, have met the requirements requested in the declaration of eligibility, and have the documentation indicated in articles 3, 4, 5, and 6, as applicable.
Once the contract is signed, it shall be remitted by ICE to the SNE for its ratification. During the term of the contract, the private producer must annually provide ICE with the certifications indicated in article 3, articles I and II subsections a), as applicable. ICE may reasonably reject the feasibility report, and consequently, not sign the energy purchase contract, if said report reveals important changes not originally accepted by it, and provided that these changes undermine the initial approach." It is clear then, that when dealing with an administrative contract, all the constitutional principles that inform it apply, such as the control of procedures and the mutability of the contract and the rights of the administration, among which we are interested in that of rescission and unilateral modification of the contract.
Based on the foregoing and this considering clause, the defendant entity had the power and competence, as the plaintiff describes it, to rescind the contract at issue, without needing to resort to the courts to seek dissolution of the relationship. Additionally, it should be noted that the same regulation of the "Ley 7200", Article 26, provides that "The loss of the concession, the producer's breach of the contract's clauses, of the law authorizing autonomous or parallel generation No. 7200, or of this regulation, shall lead to the termination of the contract for the purchase of electric energy entered into with the ICE without any liability for that institute..." (emphasis ours). As was demonstrated, the plaintiff company disrespected the deadlines by which it had to have the work completed and begin producing electric energy, meaning it breached the contract, and the defendant institute had the power and the legal duty to resolve the agreement, all in the interest of protecting the public service and the energy supply.
Article 227 of the "Reglamento de la Contratación Administrativo". Decreto Ejecutivo Nº 7576-H, in force at the time of the procurement. The plaintiff's claim that the works could not be completed due to natural causes, specifically the heavy rains that struck the region and caused the waters to undo the built works, concretely the dam, is not acceptable, because this was not demonstrated in the record and, rather, each and every one of the witnesses proposed by it, were unanimous in stating that the project was not completed due to economic problems. The investment made by the plaintiff company and the progress it made on the work is very regrettable, which this authority acknowledges, and there is no dispute regarding that, but the project was not finished, the contract signed between the parties was violated, and therefore, it must be repeated, the "Instituto Costarricense de Electricidad" had every right to resolve it without any liability.
In the same vein, the defendant entity could impose its conditions for granting an extension of the stipulated term. Note that it was not its obligation to do so; the granted time was already more than expired, the extension requests were made untimely, and therefore, it was the entity's power to grant the extension. Therefore, when issuing the agreement of the Board of Directors of said institution, Session 4788, Article 2 of September 1, 1996, granting the request, but with special conditions, which would be a fine of fifty-four thousand colones daily and another performance guarantee (garantía de cumplimiento), it did so in exercise of its sovereign power, and this cannot be considered a unilateral modification of the contract, which it could also do per se, but rather a good-faith concession made to its contracting party, in order to bring the procurement to a successful conclusion. However, note that three years had already passed since the signing of the agreement, the delivery deadline had expired almost two years prior, and the defendant entity could not remain in suspense regarding this electric generation contract, because it had to have that energy source available to meet the country's needs, nor was it possible for it to be in a situation of uncertainty and unable to fully meet these needs if the plaintiff failed again in its contractual promises.
Electrical planning must be done months in advance, so that there is no shortage in the country, and it is logical that the defendant entity had to ensure compliance with the agreement, already delayed in itself, and what it did, it is repeated, was rather to grant the plaintiff more time when it did not even have to do so, for which reasons the ruling in the appealed judgment must be confirmed in that regard. The argument given in this instance by "Hidroeléctrica Taus", to the effect that the defendant put them in a situation of impossibility of performance by unilaterally modifying the contract and imposing sanctions and an increase of the performance guarantee (garantía de cumplimiento), is also not acceptable, given that they themselves were the ones who did not complete the works on time, placing themselves in that situation, and the counterparty had no obligation to grant them time extensions, with them giving nothing in return.
VIII. Due process was also not violated in the record by considering the repeatedly cited agreement resolved. It should be noted that the legislation existing at the time of signing the contract did not refer to the type of process to be followed in this case, but already in the "Ley de Contratación Administrativa", Article 11, it indicates that the administration may unilaterally rescind the contract, all in compliance with due process, and in Article 13 of its regulation the procedure to be followed in these cases is established. Now then, integrating the foregoing with the reiterated constitutional case law of respect for adversarial rights and due process in administrative proceedings, it is observed that in the sub judice case, the plaintiff's defense rights were not violated. Let us see: following the last request for an extension of the agreement's term, made by the person who had already demonstrated having the representation of the plaintiff, the "Instituto Costarricense de Electricidad" granted it in Session 4788 of September 1, 1996, but conditional upon the payment of a fine and a performance guarantee (garantía de cumplimiento), for which it was granted a hearing.
To this, the plaintiff accepted only the extension of the term and filed a review appeal, which was resolved in a resolution adopted by the defendant in Session 4811 of November 12, 1996, in which it was again required to indicate whether or not it accepted its proposal, an agreement that was again appealed by the plaintiff, an appeal that was rejected in Session 4728 of January 21, 1997. Again, and through official letter No. 9510-E of November 14, 1997, the Private Generation Office of the defendant entity informed it of the agreements adopted by the Board of Directors and granted a 15-day period for it to state the pertinent matters regarding the contractual breach, to which the plaintiff stated that the ICE could not resolve the contract and that they should proceed to arbitration. Following this, through official letter No. 00529-E dated January 20, 1998, the plaintiff was informed that the agreement to resolve the contract had been adopted, which was appealed by the plaintiff's representative, an appeal that was rejected by the Board of Directors, in Session No. 5013 of October 6, 1998.
After this list of transcribed official letters, decisions, and appeals, it is not possible to admit that due process was violated in the record. The only thing to determine was whether there was a delay in the agreed deadlines, and this was an uncontested fact, given that the company itself was requesting the extensions because it had not completed the hydroelectric project. It appealed all the rejections of its request, and, as already analyzed, the defendant entity had the right and the power not to extend the contract and even to modify it unilaterally, given the counterparty's breach and the need to satisfy a public service. Therefore, although an ordinary administrative procedure per se was not opened, due process was fulfilled in which the plaintiff was granted all possibilities to appeal and oppose the different administrative decisions issued in the specific case.
"VI. En autos tenemos que las partes sucribieron un contrato de compra-venta de energía eléctrica, en el cual la empresa Hidroeléctrica Taus se comprometía a iniciar las obras de construcción de la planta generadora inmediatamente a la firma del contrato y la entrada en operación, trece meses y medio después. También se convino en que para que el contrato fuera eficaz, debía contar con la ratificación del entonces Servicio Nacional de Electricidad, y que en caso de no poderse cumplir con las fechas señaladas, se debería informar previamente al ICE las causas de los atrasos que daban lugar al incumplimiento. Ocurrido ésto, la actora, sea la vendedora del servicio, podría solicitarle al ICE una prórroga por cada una de las dos fechas señaladas, que podrá extenderse hasta por un año desde el inicio de la construcción y hasta por dos años para la entrada en operación. El acuerdo se firmó el 29 de setiembre de 1994 y su ratificación por parte del Servicio Nacional de Electricidad lo fue el 1 de noviembre de 1993.
Posteriormente, el 24 de julio de 1994, las partes suscriben un ademdum al contrato, en el cual se modifica la cláusula 4 del convenido, con una vigencia igual a la del contrato de compraventa. Es menester aclarar primeramente que esta última modificación al contrato en nada varía los plazos establecidos inicialmente de comienzo de la obra y de entrada en servicio de la planta hidroeléctrica, ni lo relativo a las prórrogas, pues a lo que se refiere dicha reforma, fue en la longitud de la línea trifásica tipo distribución ka 34.5 Kv, y que la misma debía ser construida y financiada por el vendedor apegándose a las normas señaladas por el ICE, y una vez construida se la traspasaría a éste con sus derechos de paso sin costo alguno. Ahora bien, indicado lo anterior, tenemos que determinar a partir de cuando comienzan a correr los plazos acordados en el convenido: si al día siguiente de la firma de éste o de la ratificación por parte del entonces Servicio Nacional de Electricidad Aquí se debe señalar, que en el presente contrato, se requiere una ratificación para que surta todos sus efectos, la cual de no cumplirse hace inexistente el convenio.
Es de acotar, aunque en autos estamos discutiendo los efectos e incumplimientos de una contratación y no un acto administrativo como tal, y a manera de ilustración, que el numeral 145 de la Ley General de la Administración Pública sujeta los efectos de dichos actos a requisitos de eficacia e indica precisamente en el aparte 4 que: "Cuando el acto requiera aprobación de otro órgano, mientras ésta no se haya dado, aquél no será eficaz, ni podrá comunicarse, impugnarse ni ejecutarse". Así, volviendo al caso en análisis, si por alguna razón la autoridad competente no avala la contratación, esta no puede ejecutarse, por lo que en este punto, el Tribunal discrepa del criterio externado por la juez de instancia, en el sentido de que desde el día posterior a la firma del convenio, empezaban a correr los plazos, pues se insiste, los derechos y obligaciones pactadas por las partes se hacen exigibles hasta que el convenido es ratificado.
Aclarado esto tenemos entonces que se debe tener como fecha de inicio de la obra el 2 de noviembre de 1993 y de la entrada en operación el 16 de diciembre de 1994. De conformidad con la norma 12 del contrato, el vendedor, si no podía cumplir con estas fechas acordadas, debía informar previamente al ICE las causas del incumplimiento, con la posibilidad de solicitar prórroga hasta por un año con respecto a la construcción y hasta por dos años para el inicio de operación. De lo anterior se colige con meridiana claridad, que la solicitud de extensión de plazos, debía hacerse antes de que se cumplieran éstos, es decir, la vendedora pedir el alargue del plazo de construcción antes del 2 de noviembre de 1994 y de entrada en operación, con anterioridad al 16 de diciembre de 1994. Sin embargo y tal y como se tiene por demostrado en autos, la primer solicitud de prórroga se hace el 21 de febrero de 1995, ya cumplidos todos los plazos, requerimiento que no contesta el ICE y no es sino hasta el 15 de marzo de 1996 que se vuelve a pedir por una persona no autorizada para ello, generándose en ese momento una discusión con relación a la persona que ostentaba la calidad de representante de la actora.
Se quiere hacer aquí un paréntesis con el fin de hacer notar que además del incumplimiento referente al plazo para pedir extensiones contractuales, tenemos que la empresa demandante violó la cláusula 29 del convenio, pues no informó a la co-contratante el cambio de representante. Ahora bien, vuelve a solicitar la prolongación del plazo el 4 de julio de 1996 a lo que el demandado le pide constancia de personería, las cuales presenta el 27 de agosto de ese año, comprobándose que el personero de la empresa fue sustituido. De lo dicho anteriormente se colige, que efectivamente las prórrogas solicitadas lo fueron en forma extemporánea, pues se realizaron fuera de los plazos establecidos contractualmente. Si bien y tal y como se dijo, no se comparte la afirmación hecha en primera instancia, relativa al momento a partir del cual debían empezar a cambiar los plazos, es lo cierto que ello no tiene en el fondo mayor importancia, pues las solicitudes de la actora, en cualquiera de los dos casos, sea poniendo como inicio el día siguiente a la firma del contrato o de la ratificación, siempre fueron extemporáneas.
Tampoco es de recibo la afirmación de la accionante en el sentido de que existió una prórroga consentida por parte del ICE, pues ello no se desprende de los autos. VII. Es preciso, antes de analizar la naturaleza del contrato de marras transcribir parte de la resolución número 10466-2000, dictada por la Sala Constitucional de la Corte Suprema de Justicia, a las diez horas con diecisiete minutos del veinticuatro de noviembre del dos mil, relativa a la naturaleza de nuestros recursos hídricos y su utilización: V.- "Naturaleza del bien jurídico involucrado: Del patrimonio de la Nación (demanio público).- En los términos de nuestra Constitución Política, el patrimonio nacional se conforma por los bienes definidos en los artículos 6, 50, 89 y 121 inciso
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