Costa Rica will receive $ 250 million from the Green Fund for the electric train –
Costa Rica will receive a loan of $ 250 million from the United Nations Green Climate Fund to finance part of the construction of a five-line electric train, a flagship project of the government.
âThe Green Climate Fund supports the electric train (â¦) It will have enormous benefits for the environment and users, promoting decarbonisation and the economy,â said the country’s president, Carlos Alvarado.
Costa Rica is one of the countries in the region that stands out most for the preservation of the environment, with initiatives such as the elimination of the use of fossil fuels by 2050 launched by Alvarado himself. and research into renewable energy production.
In 2020, 99.78% of Costa Rica’s electricity grid was powered by renewable sources. It was the sixth consecutive year above 98%, according to data from the Energy Control Center (CENCE).
The Green Climate Fund, an entity created by the UN in 2010, will also provide $ 21.7 million for other works accompanying the project, such as cycle paths connected to some of the stations.
The electric train was a main campaign promise for Alvarado, who was elected President of Costa Rica in 2018.
The work “aims to provide a public transport system that connects a main east-west axis of the Greater Metropolitan Area (GAM),” said Elizabeth BriceÃ±o, president of the Costa Rican Institute of Railways (Incofer ).
The total cost of the project, according to the government, is $ 1.55 billion, of which the Central American Bank for Economic Integration (CABEI) will cover $ 550 million, with a 40-year loan, with a grace period of 10 years.
According to Casa Presidencial, the $ 250 million from the Green Climate Fund would finance part of CABEI’s 550 million, thus improving conditions.
The remaining billion dollars would come from foreign direct investments. However, no tender has yet been issued as loan approval is blocked in the Legislature.
The draft tender notice, published in 2020, would have attracted the interest of 52 companies, Incofer reported. The system would cover an approximate length of 84 kilometers, with 46 stations on five lines.
The return, according to Incofer, would be total profits of $ 3 billion and a cumulative effect of 3.69% on the growth rate of gross domestic product (GDP) over the investment period, which would be between 2023. and 2025.