COSTA RICA-CABEI APPROVES A US$550 MILLION LOAN FOR AN ELECTRIC HIGH-SPEED PASSENGER TRAIN PROJECT
The Central American Bank for Economic Integration (CABEI) has granted a US$ 550 million loan to implement the ‘High-speed Passenger Train for the Greater Metropolitan Area’ project.
The project envisages a US$ 1,297.7 million investment for the construction, equipment and put into operation of the electric train on the 73-km-long railway line that crosses 15 municipalities in the four provinces of the central plateau: San Jose’, Alajuela, Heredia e Cartago. Along the line there will be 42 stations enabling multimodal connections.
As indicated by the same CABEI in a press release, these types of loans are generally granted with an expiry at 25 years, a grace period of 5 years and an annual interest rate of 4.95%. However, in consideration of the positive impact of this project, the CABEI indicated its intention to significantly improve the terms generally granted on loans, extending the term from 25 to 40 years and lowering the interest rate from 4.95% to 1.55%.
The remaining funds are expected to come from the private sector. The Government would like the project to be implemented through a public-private partnership, licensing the management of the service to a private company through a public international tender.