$550 Million Approved for Fast Train

The Central American Bank for Economic Integration approved a loan to the government of Costa Rica to finance part of the project "Fast Passengers Train of the Great Metropolitan Area."

Thursday, October 31, 2019

The investment in infrastructure and equipment of the project represents $1.298 million, which is expected to be executed under the modality of Public Private Partnership, with a state contribution of $550 million, which will be provided by the Central American Bank for Economic Integration (CABEI), according to a statement from the financial institution.

See "A $1.6 billion Fast Train"

The project consists of the construction, equipment and commissioning of an Electric Railway System for Passengers in the Greater Metropolitan Area (GAM).

For Dante Mossi, Executive President of the CABEI "... this is a project marking the beginning of railway projects to the region and is also environmentally friendly as it is an electric train in a country where most of the electric energy is renewable, and that will serve as a model for other similar projects in the region."

"... CABEI's ordinary resources for this type of financing are 25 years including a 5-year grace period and an indicative annual interest rate of 4.95%. Because of the positive impacts of this operation, the CABEI makes important efforts with other sources of cooperation to improve these conditions to the maximum with the expectation of extending the term up to 40 years and lowering the annual interest rate to 1.55%", explains the official document.

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More on this topic

Electric Train: Progress in Costa Rica

May 2020

The Executive presented before the Legislative Assembly the draft law of the loan contract with the Central American Bank for Economic Integration, which will be used for the construction of the Passenger Electric Train of the Great Metropolitan Area.

Although it was recently introduced to the congressmen, the loan had been approved by the Central American Bank for Economic Integration (CABEI) since the end of October 2019.

A $1.6 billion Fast Train

April 2018

The electric train planned for development in Costa Rica would cover a length of 80 kilometers of track, and the physical infrastructure of the project alone would have an estimated cost of $1.353 million.

At the end of December 2017 the Instituto Costarricense de Ferrocarriles presented an Environmental Impact Study (EIA) to build an electric train transport system in the Greater Metropolitan Area (GAM).

Costa Rica: Money for Urban Train

June 2016

The new law allows the Incofer to borrow up to about $440 million to build an electric inter-urban train line through means of a public-private partnerships or trusts.

Under recent government administration's proposals to build a train in the metropolitan area of the country have always been on the agenda, and the current government of Luis Guillermo Solis is no exception. His administration proposed an initiative which has now passed into law, therefore the Instituto Costarricense de Ferrocarriles has the legislative backing to seek funding and build a metro train.

Feasibility Study for Light Rail

December 2011

For the third time in the last 8 years a feasibility study has been done for the development of rail links within the Greater Metropolitan Area of Costa Rica's capital.

Funding for this study now comes from a donation of $800 thousand from the Spanish state run company Ferrocarriles de Vía Estrecha (FEVE), which in recent years has worked with railroad equipment currently in use by the Costa Rican Institute of Railways (Incofer).

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