COSTA RICA ELECTRIC TRAIN

Promoter – Financial Intermediary

REPUBLICA DE COSTA RICA

Location

• Costa Rica

Description

Electrification and rehabilitation of a rail corridor comprising of two lines and about 50 km across the metropolitan area of San Jose de Costa Rica to run tram-train services. The project is a flagship initiative of the Global Gateway Investment Agenda.

Objectives

The EIB operation aims to finance the electrification, rehabilitation, and upgrade of the railway system of the great metropolitan area of San Jose (Costa Rica) as well as the acquisition of new electric trains. The project is a flagship initiative of the Global Gateway Investment Agenda. Co-financing with the Central America Bank of Economic Integration (CABEI) and the Green Climate Fund (GCF), the project will optimise frequencies, electrify and rebuild infrastructure, improve crossings, modernise tracks, signalling, crossing areas or traffic control systems which in turn will improve the quality of life of the population of the metropolitan area with modern, accessible, and safe transportation.

Sector(s)

• Transport - Transportation and storage

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

USD 250 million (EUR 238 million)

Total cost (Approximate amount)

USD 1040 million (EUR 991 million)

Environmental aspects

If it were located in the EU, the project would fall within the scope of Annex I of the EIA Directive. A preliminary Environmental and Social Impact Assessment (ESIA) in order to identify the key environmental and social risks was completed in accordance with the national legislation of Costa Rica. Concerning the social impacts, the project may require resettlement of some households and businesses. Project impacts, compliance of the performed ESIA with the EIB Environmental and Social Standards, the need for further assessments to complement it, as well as the need for a Resettlement Policy Framework and/or Resettlement Action Plan will be analysed during appraisal. The project's key Environmental and Social documents will be published in line with the Bank's procedures. Overall, the project is expected to contribute to climate change mitigation and pollution prevention. The project is also expected to bring social benefits in terms of improving mobility, especially for people without access to motorised private transport.

Procurement

The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Under appraisal - 7/05/2024