Costa Rica: CABEI grants a 550-mln-dollar loan for electric train system
The Central American Bank for Economic Integration – CABEI – granted a 550-million-dollar loan to implement the “fast passenger train project for the greater metropolitan area” in Costa Rica.
The project envisages an investment of 1,297.7 million dollars for the construction, equipping and putting into operation of the electric train on a 73-km railway line that will cross 15 municipalities of the four provinces on the central plateau: San Jose', Alajuela, Heredia and Cartago. Along the line there will be 42 stations enabling multimodal connections. 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%.
In the upcoming months, the Parliament will be called on to examine and ratify the loan agreement. 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. The Government intends to adjudicate the project before ending its term of office in 2022.