The European Investment Bank (EIB), through its development arm EIB Global, has signed a landmark USD 250 million loan to support 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 over a decade.
The project is also the first to be co-financed with the Central American Bank for Economic Integration (CABEI) and the Green Climate Fund (GCF), creating a clean, modern and inclusive transport system that will benefit more than three million people in the San José Greater Metropolitan Area.
Implemented by INCOFER, Costa Rica’s national railway authority, the project forms part of the EU’s Global Gateway initiative, which promotes sustainable and inclusive infrastructure worldwide.
Modern, accessible and sustainable transport
The new network will feature two double-track lines totalling over 51 kilometres, linking Paraíso to San José and San José to central Alajuela. It will include 28 electric train units, 30 stations, two new terminals and nine crossings, enabling frequent, reliable service every ten minutes throughout the week.
The system is designed to improve connectivity, cut travel times and promote inclusion, particularly benefiting women—who make up the majority of public transport users and have less access to private vehicles. Once operational, the electric train will become the backbone of Costa Rica’s urban mobility network, providing better access to jobs, education and essential services.
The project is expected to reduce annual CO₂ emissions by around 18,000 tonnes, leveraging Costa Rica’s nearly 100% renewable energy mix to power the system and contribute to the country’s climate goals.
A collaborative investment
“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,” said Rodrigo Chaves, President of the Republic of Costa Rica. “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.”
“This project is a great example of strategic cooperation between the European Union and Costa Rica,” said EIB Vice-President Ioannis Tsakiris. “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.”
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