UN Climate Fund mulls funding for US$2bn Costa Rica electric train

The UN Climate Fund will decide on funding for Costa Rica’s US$2.05bn electric train by late June.

Originally, the Central American Bank for Economic Integration (Cabei) planned to provide a US$550mn loan, with the rest coming from the government and the contract winner.

“What remains is for the board to meet and debate whether this is feasible or not,” Cabei president Dante Mossi told local media.

Mossi added that Cabei remains committed to the train and is awaiting the result of legislative assembly decisions. 

The rate of a Cabei loan rate would be 3.8%, calculated at Libor rate plus 2.9%. 

If the Green Fund steps in, the rate could fall to 1.5%. A decision is expected for June 26 or 27.

“We have spoken with the manager of the fund and he is happy because of all the regions, Latin America is the one that makes use of this fund the least. This would be the only major project that is being presented in all of Latin America,” daily CRhoy quoted Mossi as saying.

In related news, Cabei confirmed that the planned ferry service between El Salvador and Costa Rica, announced in 2015, obtained an environmental permit.

Is reported on Monday, Port institute Incop received the permit to develop a container loading system in early May already. An inauguration date has not been announced.

Photo credit: Costa Rica government