GCF, CABEI, and the European Union unite to finance Costa Rica’s GAM electric train

The Green Climate Fund (GCF), the Central American Bank for Economic Integration (CABEI), and the European Union, through its Global Gateway strategy, have come together to fully finance the ’Construction, Equipment, and Start-up of Lines 1 and 2 of the Costa Rica Electric Train System’ for USD 800 million.

GCF is co-financing USD 178.7 million and donating another USD 21.3 million of the CABEI’s USD 550 million investment, which is also supported by USD 250 million from the European Investment Bank. Thanks to a credit scheme with highly competitive interest rates and grace periods, this initiative is a fiscally responsible project that saves Costa Rica resources and requires no annual subsidy.

The project will include two lines comprising 51 kilometres of double track; one running from Paraíso Cartago to San José, and another between San José and downtown Alajuela. Also included are the procurement of 28 new electric units, 30 stations, two completely new terminals, and nine overpasses, which will allow for continuous, high-quality service, with buses running every 10 minutes, every day of the week.

“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 could not be sustained, this one is solid, fiscally responsible, and will not require a state subsidy. Because the train of progress does not wait—this is a train we can all board,” emphasised the President of the Republic, Rodrigo Chaves.

GCF Director of the Department of Latin America and the Caribbean Region, Kristin Lang, said: “This project is a big step forward for Costa Rica. Using the country’s nearly 100 per cent clean, renewable energy to power the new trains will cut harmful GHG emissions and make travel safer and faster. The Green Climate Fund is proud to partner with CABEI and the Government of Costa Rica to build a modern and sustainable transport system for the people of San José Greater Metropolitan, with an annual average of 68 million passengers expected to benefit from the services.

European Commissioner for International Partnerships Jozef Síkela said: "I would like to congratulate Costa Rica and its government on their decision to promote a modern, sustainable, and cost-effective public transport system, in which the European Union has been a strong partner in this vision. The support announced today will ensure a state-of-the-art electric train, with direct support to INCOFER, to maintain the highest standards of quality and environmental impact. This support reflects what Global Gateway stands for: investing alongside our partners in sustainable development that generates concrete benefits.

CABEI Executive President Gisela Sánchez emphasised: “CABEI is proud to accompany Costa Rica in the development of a project that builds a more just and sustainable future for all.” Together with our strategic allies, the Green Climate Fund and the EIB, we have joined forces to fully finance this national project, which will transform the lives of more than three million people and mark a turning point in the history of urban mobility.

For his part, the Vice-President of the European Investment Bank (EIB), Ioannis Tsakiris, said: “This project is a great example of strategic cooperation between the European Union and Costa Rica, where for the first time the European Investment Bank is co-financing alongside the Green Climate Fund and the CABEI. The EIB reaffirms its commitment to supporting solid projects that improve connectivity, sustainability, and economic growth"

Álvaro Bermúdez Peña, Executive President of INCOFER, stated: “We set out to optimise this project with a clear vision: to deliver a solid proposal to Costa Ricans, aligned with the real needs of the population and without unnecessarily indebting the country. It not only represents technical progress, but also a commitment fulfilled to Costa Rica.”

The project will prioritise the integration of multiple modes of transportation, with stations designed to provide efficient access to bus stops, taxis, and bicycle spaces. Critically, it is estimated that the operation of this critical national project will result in a reduction of 6.54 million tCO2 of greenhouse gas emissions, among other benefits—roughly equivalent to getting 1.5 million cars off Costa Rica’s roads.