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Rapid Passenger Train in Greater Metropolitan Area of Costa Rica gets Funding

Infra News - Published on Mon, 11 Nov 2019

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The Central American Bank for Economic Integration approved financing to the Republic of Costa Rica in the amount of up to USD 550.0 million for the Project denominated, Rapid Passenger Train of the Greater Metropolitan Area. The project involves the construction, equipment and start up of an Electric Rail Passenger System in the Greater Metropolitan Area. The President of the Republic of Costa Rica, Mr Carlos Alvarado Quesada, said that, “The Electric Passenger Train in the Greater Metropolitan Area is a transformative project that will change the lives of thousands of people in Costa Rica, providing benefits in terms of transportation times, reduction of costs to people and the country, improvements in health and air quality and a reduction in the country's carbon emissions in order to decarbonize the economy. In addition, the project is a milestone that lets us dream about other initiatives, such as a Central American Train. It is one of the best investments that the country can make and we are pleased that the Central American Bank for Economic Integration is a key part of this significant project.”

The project's investment in infrastructure and equipment represents USD 1.30 billion dollars and is expected to be executed under the Public Private Partnership modality with a state contribution of USD 550 million, which will be provided by CABEI. The ordinary resources of CABEI for this type of financing are made under a 25-year term, including a 5-year grace period and an indicative annual interest rate of 4.95%. Due to the positive impacts of this operation, CABEI is making significant efforts with other sources of cooperation to maximize these conditions with the expectation of extending the term to up to 40 years and lowering the annual interest rate to 1.55%.

The main expected impacts include direct benefits for 4.5 million inhabitants of GAM; hiring of 1,000 temporary employees for construction activities; generation of 461 fixed jobs for the project's operational stage, of which at least 22% will be held by women; generation of 189 direct temporary jobs, of which 20% will be occupied by women; reduction of carbon dioxide emission; alleviation of road congestion; and reduction of road accidents.

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Posted By : Arun Huidrom on Mon, 11 Nov 2019
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