Costa Rica Electric Train: EIB Funds Sustainable Rail Project

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Introduction

The European Investment Bank (EIB) has approved a $250 million loan to finance the development of Costa Rica’s first electric train system, overseen by the country’s national railway authority, INCOFER. This marks the EIB’s initial lending operation in Costa Rica and the first in over a decade, with the project forming part of the European Union’s Global Gateway initiative.

Project Financing and Scope

The EIB loan, provided through EIB Global, represents the first time the EIB has partnered with the Central American Bank for Economic Integration and the Green Climate Fund on a project in Costa Rica. The planned electric train system will consist of two double-track lines spanning more than 51km between Paraíso, San José, and central Alajuela. The project includes the acquisition of 28 electric train units, the construction of 30 stations, two terminals, and nine crossings, with a scheduled service frequency of every ten minutes throughout the week.

Impact and Commuter Benefits

The new rail service is expected to accommodate more than 100,000 daily commuters in the greater San José metropolitan area, which has a population of over three million residents. The rail network aims to improve access to employment and education, with a focus on inclusivity for women, who represent the majority of public transport users in the region.

Environmental and Strategic Goals

The electric train project is anticipated to reduce carbon dioxide emissions by 18,000t annually, aligning with Costa Rica’s climate objectives and leveraging the country’s nearly fully renewable energy generation. The project is a strategic cooperation between the European Union and Costa Rica.

Statements and Implementation

Republic of Costa Rica President Rodrigo Chaves stated that the project is a concrete and viable decision, financially backed by international entities. INCOFER executive president Álvaro Bermúdez Peña highlighted the project’s alignment with the real needs of the population. EIB vice-president Ioannis Tsakiris noted that the project sees, for the first time ever, the EIB co-financing a project in the country with the Central America Bank for Economic Integration and the Green Climate Fund.

Conclusion

The EIB’s $250 million loan will fund Costa Rica’s initial electric train system, overseen by INCOFER, encompassing over 51km of double-track lines, 28 electric train units, and 30 stations, aiming to serve over 100,000 daily commuters and reduce carbon emissions by 18,000t annually. The project, supported by the European Union’s Global Gateway initiative, also involves collaboration with the Central American Bank for Economic Integration and the Green Climate Fund.

Company Summary

INCOFER: Costa Rica’s national railway authority, responsible for overseeing the electric train project.

European Investment Bank (EIB): Provided a $250 million loan to fund the electric train project.

Central American Bank for Economic Integration: Partnered with the EIB on the project.

Green Climate Fund: Partnered with the EIB on the project.

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