EIB Global backs Costa Rica’s first electric train with landmark $250 million loan

This article is published in association with European Investment Bank.

• The European Investment Bank (EIB) has made its first loan to the Republic of Costa Rica, marking the first EIB operation in the country in over a decade.
• The project is also the first to be co-financed with the Central American Bank for Economic Integration and the Green Climate Fund.
• It will create a modern, clean and inclusive transport system benefiting over three million people in the San José Greater Metropolitan Area.

The EIB, through its development arm EIB Global, has signed a landmark $250 million loan to support the construction of Costa Rica’s first electric train system. This marks the first EIB loan to the Republic of Costa Rica, the first EIB operation in the country in more than ten years, and the first project jointly financed with the Central American Bank for Economic Integration and the Green Climate Fund.

The initiative will be implemented by INCOFER, Costa Rica’s 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, enabling frequent and reliable service every ten minutes, seven days a week.

The electric train 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. The system is designed to be inclusive, with a particular focus on women, who make up the majority of public transport users and have less access to private motorised transport. The new train system will be the backbone of public transport in a metropolitan area with more than 3 million inhabitants, and paves the way for various initiatives for sustainable mobility and multimodality supported by the European Union and some Member State development agencies.

The initiative is expected to reduce 18 000 tonnes of CO₂ emissions every year, contributing to Costa Rica’s climate commitments and capitalising on the country’s nearly 100% renewable energy generation.

“The electric train is no longer just a dream, or a promise left on paper. 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 on board,” saidPresident of the Republic of Costa RicaRodrigo Chaves.

“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 America Bank for Economic Integration and the Green Climate Fund. The electric train provides an affordable mobility solution to make jobs and study opportunities more accessible, while reducing congestion, air and noise pollution, road safety and greenhouse gas emissions. 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,” said EIB Vice-PresidentIoannis Tsakiris.

“I want to congratulate Costa Rica and its government for the decision to promote a modern, sustainable and cost-effective public transport system, in which the European Union and its Member States have been strong partners. The support announced today will ensure a state-of-the-art electric train, with direct assistance to INCOFER to guarantee the highest standards of quality and environmental impact. This support reflects what Global Gateway stands for: investing with our partners in sustainable development that delivers tangible benefits,” said European Commissioner for International PartnershipsJozef Síkela.

“The Central American Bank for Economic Integration is proud to support Costa Rica in developing a project that builds a fairer and more sustainable future for all. Together with our strategic partners, the Green Climate Fund and the EIB, we have joined forces to fully finance this national project, which will transform the lives of over three million people and mark a turning point in urban mobility,”saidExecutive President of the Central American Bank for Economic IntegrationGisela Sánchez.

“This project represents a major step forward for Costa Rica. 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 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,” said Director for Latin America and the Caribbean at the Green Climate FundKristin Lang.

“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. It represents not only technical progress, but also a fulfilled commitment to Costa Rica,” said Executive President of INCOFERÁlvaro Bermúdez Peña.

Background information

About EIB Global

The European Investment Bank is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.

EIB Global provided a total of €8.4 billion during 2024 to help address global challenges and foster growth and opportunity all over the world. EIB Global is part of Team Europe, which means it partners with the European Commission, EU Member States and development finance institutions to deliver on common objectives and maximise the EIB Group’s impact. It is also a key partner of the European Green Deal, and of the EU’s Global Gateway initiative, under which it aims to support €100 billion of investment by the end of 2027.

About the EIB Group

The EIB Group, consisting of the European Investment Bank and the European Investment Fund, is the biggest multilateral financial institution in the world and one of the largest providers of finance for climate action. As the bank of the European Union, its shareholders are the EU Member States, and it works in close collaboration with the European Commission. In 2024, global financing from the EIB Group totalled over €88 billion, of which a record of over €50 billion was invested in green finance. The EIB Group’s policy priorities are financing small and medium firms, innovation, digital and human capital, sustainable cities and regions, and sustainable energy and natural resources. Its work extends beyond Europe to over 160 countries.