Costa Rica secures full financing for the GAM electric train with support from CABEI, the European Union, and the Green Climate Fund.

San José, September 26, 2025. For the benefit of more than 100,000 daily users and more than three million people in the Greater Metropolitan Area (GAM), the Central American Bank for Economic Integration (CABEI), the Green Climate Fund (GCF), and the European Union, through its Global Gateway strategy, have formed a strategic alliance to fully finance the "Construction, Equipment, and Start-up of Lines 1 and 2 of the Costa Rica Electric Train System" for US$800 million.

The government will send a bill to the Legislative Assembly that provides for the total financing of the electric train. The CABEI will contribute US$550 million, of which US$178.7 million will be co-financed by the Green Climate Fund and US$21.3 million will come as a donation from the same fund. Added to this is US$250 million from the European Investment Bank, consolidating a credit scheme with highly 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.

The project includes two lines totaling more than 51 kilometers of double track: one from Paraíso Cartago to San José, and another from San José to downtown Alajuela. It also includes the procurement of 28 new electric units, 30 stations, two completely new terminals, and nine overpasses, which will allow for continuous, high-quality service every day of the week, with buses running every 10 minutes.

Another substantial improvement is the implementation model, which will be developed as a public works project with full financing, ensuring the construction, equipping, and operation of the train.

"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," emphasized the President of the Republic, Rodrigo Chaves.

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 emphasized: "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."

The Green Climate Fund's (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% 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.

Álvaro Bermúdez Peña, Executive President of INCOFER, stated: "We set out to optimize 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 prioritize the integration of modes of transportation, ensuring connections with other mobility systems. The stations will have efficient access to bus stops, taxis, and bicycle spaces, facilitating a smooth connection between different modes of transportation. In addition, 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.