The European Investment Bank, through its development arm EIB Global, has signed a US$250 million loan to support the construction of Costa Rica’s first electrified train system.

This marks the first EIB loan to the Republic of Costa Rica. The initiative will be implemented by Incofer, the national railway authority, and is part of a broader strategic partnership under the European Union’s Global Gateway initiative, which aims to foster sustainable and inclusive infrastructure worldwide.

The project will deliver two double-track lines totalling over 51 kilometres, connecting Paraíso to San José, and San José to central Alajuela. It includes the procurement of 28 new electric train units, 30 stations, two new terminals, and nine crossings.

The trains will significantly improve public transport in the Greater San José Metropolitan Area, and will benefit over 100,000 commuters daily by providing better access to jobs and education with significant travel time savings, EIB says.

The new train system will be the backbone of public transport in a metropolitan area with more than 3 million inhabitants, and will pave the way for various initiatives for sustainable mobility and multimodality supported by the European Union and some member-state development agencies.

“This project is a great example of strategic cooperation between the European Union and Costa Rica, which sees, for the first time ever, the EIB co-financing a project in the country with the Central American Bank for Economic Integration and the Green Climate Fund,” says EIB vice-president Ioannis Tsakiris. “The EIB remains a key partner for Costa Rica, supporting sound projects that enhance connectivity, sustainability and economic growth, as part of the European Union’s Global Gateway Investment Agenda.”

Kristin Lang, director for Latin America and the Caribbean at the Green Climate Fund, adds: “Leveraging the country’s nearly 100% clean and renewable energy generation to power the new trains will significantly reduce greenhouse gas emissions and provide safer, more efficient transport. At the Green Climate Fund, we are proud to partner with the Central American Bank for Economic Integration and the Government of Costa Rica to develop a modern and sustainable transport system for the people of the Greater Metropolitan Area.”