Costa Rica’s First Electric Train Secures EIB, CABEI and Green Climate Fund Financing to Drive Sustainable Urban Mobility

Costa Rica’s First Electric Train Secures EIB, CABEI and Green Climate Fund Financing to Drive Sustainable Urban Mobility

(IN BRIEF) The European Investment Bank (EIB), through EIB Global, has signed a $250 million loan to support Costa Rica’s first electric train project — the country’s first EIB-financed operation in over ten years. Co-funded with the Central American Bank for Economic Integration and the Green Climate Fund, the project will establish a 51 km double-track electric railway connecting Paraíso, San José, and Alajuela. Expected to serve over 100,000 passengers daily, the initiative will cut 18,000 tonnes of CO₂ annually and enhance inclusivity, accessibility, and mobility in the Greater San José Metropolitan Area. The project supports Costa Rica’s climate commitments and advances the EU’s Global Gateway strategy for sustainable infrastructure.

(PRESS RELEASE) LUXEMBOURG, 7-Oct-2025 — /EuropaWire/ — The European Investment Bank (EIB), through its development arm EIB Global, has signed a landmark $250 million loan to finance the construction of Costa Rica’s first electric train system, marking the EIB’s first loan to the Republic of Costa Rica and its first operation in the country in more than a decade. The project also represents a historic trilateral co-financing effort between the EIB, the Central American Bank for Economic Integration (CABEI) and the Green Climate Fund (GCF).

Implemented by INCOFER, Costa Rica’s national railway authority, the initiative is a flagship project under the European Union’s Global Gateway strategy, which supports sustainable and inclusive infrastructure worldwide. The electric train will connect key areas across the San José Greater Metropolitan Area (GAM) — one of the most congested regions in Central America — transforming public transport for more than three million residents.

The new system will include two double-track lines covering over 51 kilometres, linking Paraíso to San José and San José to Alajuela, and will feature 28 modern electric train units, 30 stations, two terminals, and nine crossings. Designed for accessibility and efficiency, trains will run every ten minutes, seven days a week, serving more than 100,000 commuters daily.

Beyond enhancing connectivity, the project is expected to cut 18,000 tonnes of CO₂ emissions annually, leveraging Costa Rica’s nearly 100% renewable energy mix. It will also make commuting safer and more inclusive — especially for women, who represent the majority of public transport users and often face limited mobility options.

President Rodrigo Chaves hailed the project as a national milestone: “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.”

EIB Vice-President Ioannis Tsakiris emphasised the project’s strategic importance: “This initiative is a great example of the European Union’s cooperation with Costa Rica, as the EIB co-finances a national project with CABEI and the Green Climate Fund for the first time. The electric train will make jobs and education more accessible while reducing congestion, pollution and emissions. It embodies what EIB Global and the Global Gateway aim to achieve — sustainable growth through inclusive connectivity.”

Jozef Síkela, European Commissioner for International Partnerships, added: “The support announced today will ensure a state-of-the-art electric train with the highest environmental standards. This is what Global Gateway stands for — investing with our partners in sustainable development that delivers tangible benefits.”

Gisela Sánchez, Executive President of CABEI, noted: “Together with the Green Climate Fund and the EIB, we are fully financing a national project that will transform urban mobility and the lives of more than three million people.”

Kristin Lang, Director for Latin America and the Caribbean at the Green Climate Fund, said: “This project leverages Costa Rica’s clean energy to power sustainable transport, cutting emissions while improving efficiency and safety for the Greater Metropolitan Area.”

Álvaro Bermúdez Peña, Executive President of INCOFER, concluded: “This project reflects a clear vision — to deliver a technically strong, socially responsible and financially sustainable mobility solution for Costa Ricans, aligned with the country’s long-term development goals.”

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.

Media contact:

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SOURCE: European Investment Bank