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CABEI to fund rail project in Costa Rica [free access]

May 7, 2020

The Central American Bank for Economic Integration (CABEI) has approved a USD550 million loan to develop an electric rail network in Costa Rica. The loan will have a term of 25 years and a grace period of five years and carries no commitment fees. The proceeds of the loan will also be used to fund the procurement of equipment and operations. The loan will be disbursed pursuant to the achievement of construction and operational milestones. The repayment of the loan will begin 12 years subsequent to the approval of the financing.

 

The electric rail network will comprise five lines which will collectively span around 85 km and cover 46 stations. The rail network will connect the Greater Metropolitan Area (GAM) with four provinces (Cartago, San José, Alajuela, and Heredia) and 15 cantons. The project involves an investment of over USD1.55 billion. The pre-feasibility, engineering, and feasibility studies have been completed. Passenger services will commence 2025 onwards.