COSTA RICA: An international financing package has been agreed to fully-fund the development of two electrified tram-train routes in the San José area.
Expected to cost around US$800m, the two lines are intended to form the backbone of public transport in the metropolitan area of more than 3 million people, paving the way for other sustainable mobility initiatives supported by the EU and member states.
Costa Rica Electric Train System
National railway authority Incofer has branded the planned services as Tibi, the Ngäbere language word for centipede, ‘because even though he has many steps to take, he never stops’ and ‘every step, no matter how small it may seem, takes us further’.
Line 1 would run 27 km southeast from San José to Cartago and Paraiso, while the 22 km Line 2 would run northwest to Heredia and Alajuela.
The lines will make use of existing 1 067 mm gauge alignments which are to be modernised, double-tracked and electrified. There will be a 2 km urban connection between San José’s Atlántico and Pacifico stations, which are linked by a street-running line.
Services are to be operated using a fleet of 28 electric tram-train vehicles, running every 10 min at peak times.
‘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’, said Kristin Lang, Director for Latin America & the Caribbean at the Green Climate Fund.
Incofer carried 1·7 million people on its Tren Interurbano diesel services in the metropolitan area in the first half of 2025. It is envisaged that the upgraded network could carry more than 100 000 passengers/day, offering significant travel time savings and better access to jobs and education.
The plans are designed to be inclusive, with a particular focus on women who have less access to private motorised transport and make up the majority of public transport users.
Project financing agreed
The project is to be financed jointly by the Central American Bank for Economic Integration, the European Investment Bank’s development arm EIB Global and the Green Climate Fund.
Incofer Executive President Álvaro Bermúdez Peña explained that ‘we set out to optimise this project with a clear vision: to deliver Costa Ricans a solid proposal aligned with the real needs of the population, without unnecessarily indebting the country.’
Announcing the financing agreement on September 26, CABEI said it would contribute US$550m, of which US$178·7m would be co-financed by the Green Climate Fund and US$21·3m would come as a donation from the fund. The European Investment Bank would provide a further US$250m.
CABEI said the package offered competitive interest rates and grace periods, making the initiative ‘a fiscally responsible project that saves the country resources and does not require an annual subsidy.’
EIB said its first loan to Costa Rica formed part of the European Union’s Global Gateway initiative to foster sustainable and inclusive infrastructure worldwide.
Not a promise left on paper
‘The electric train is no longer just a dream, or a promise left on paper’, commented President of Costa Rica Rodrigo Chaves.
‘Today, it is a concrete and viable decision, financially backed by three international entities that believe in Costa Rica and its people. Unlike previous proposals that were unsustainable, this one is solid, fiscally responsible, and will not require state subsidies. Because the train of progress doesn’t wait – we’re all onboard.’