The Central American Bank for Economic Integration (CABEI) granted Costa Rica a loan of $550 million to support the construction, equipment and start of operations of the Fast Passenger Train for the Great Metropolitan Area.
The total cost of the project is estimated on $1,297 million, the balance would come from private companies through public-private alliance, the government will carry out an international bidding to pick the best concessionaire. The goal is to have the first stage of the fast passenger train awarded and in process before the end of Alvarado’s Government.
Claudia Dobles, First Lady of Costa Rica, is leading this project, the Fast Passenger Train would cover 73 kilometers of 15 counties of the provinces of San Jose, Heredia, Alajuela and Cartago, with 42 stations that will also allow users to connect with other modalities of transportation such as buses and bicycles, benefiting an approximate 4.5 million people.
CABEI granted the loan with a term of 25 years, 5 years grace-period and an interest rate that will not exceed 1.55% annually, CABEI is also working on the possibility of extending the term of the loan to up to 40 years.
“The Electric Passenger Train in the Greater Metropolitan Area is a transformative project that will change the lives of thousands of people in Costa Rica, providing benefits in terms of transportation times, reduction of costs to people and the country, improvements in health and air quality and a reduction in the country’s carbon emissions in order to decarbonize the economy. In addition, the project is a milestone that lets us dream about other initiatives, such as a Central American Train. It is one of the best investments that the country can make and we are pleased that the Central American Bank for Economic Integration is a key part of this significant project”, commented President Carlos Alvarado.
Dr. Dante Mossi, CABEI Executive President, commented that, “This project marks the beginning of environmentally-friendly railway projects in the region since it is being carried out in a country where most of the Electric power is renewable. Likewise, it will serve as a benchmark for the other similar regional projects.”