Published on Tuesday, May 13, 2026
By the A.M. Costa Rica staff

Costa Rica’s Congress has approved an $800 million loan to finance the country’s first electric train project, marking a major step toward modernizing public transportation in the Greater Metropolitan Area.

Lawmakers approved Bill No. 25.291 with 56 votes in favor. The financing agreement with the Central American Bank for Economic Integration (CABEI) will fund the construction, equipping and operation of the electric rail system.

According to Congress, the project will serve the Greater Metropolitan Area, which includes the provinces of San José,  Alajuela, Heredia and Cartago.

The initiative includes the electrification and rehabilitation of a rail corridor spanning approximately 50 kilometers across the metropolitan region. The corridor will consist of two lines designed to operate tram-train services.

Funding from CABEI will support the electrification, rehabilitation and modernization of the railway network, as well as the purchase of new electric trains.

The Costa Rica electric train project is considered a flagship initiative under the Global Gateway Investment Agenda. Co-financed by CABEI and the Green Climate Fund, the project aims to optimize train frequencies, rebuild and electrify infrastructure, modernize tracks and signaling systems, improve crossings and upgrade traffic control systems.

Authorities said the project is expected to improve the quality of life in the metropolitan area by providing modern, accessible and safer public transportation.

The total cost of the project is estimated at approximately $850 million. Of that amount, CABEI will provide $800 million in financing, while the Green Climate Fund will contribute $25 million. Costa Rica’s Ministry of Public Works and Transport (MOPT) will cover the remaining investment.

MOPT recently announced that the feasibility study for the urban electric train project was developed by the Spanish company Meta Engineering.

The Railway System Institute (INCOFER), the state railway agency, presented plans for a double-track rail system connecting San José with Heredia, Cartago and Alajuela. Officials said travel time from one end of the route to the other is expected to be about 45 minutes.

The electrified rail system is projected to carry up to 600 passengers per train and more than 100,000 passengers daily.

The project includes 50 kilometers of railway line and 46 stations, including interchange stations designed to connect with buses, taxis and nonmotorized transportation options.

Authorities estimate the electric train project will take about five years to complete.

The loan agreement carries a 25-year term, including a grace period of up to five years.

The approved loan document will now be sent to the Presidential House for final approval by President Laura Fernández-Delgado.

Costa Rica’s rail system is managed by INCOFER, the state-owned agency responsible for railway infrastructure and for operating freight and passenger rail services throughout the densely populated Central Valley.

MOPT oversees Costa Rica’s roads, ports, airports and public transportation systems.

------------
What measures should Costa Rica implement to improve public transportation? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com