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The purpose of the $400 million loan is to upgrade the country's road network.
- Photo via Ministry of Public Transports -

International bank approves $400M loan to Costa Rica

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Published on Thursday, September 7, 2023
By the A.M. Costa Rica staff

The Honduras-headquartered Central American Bank for Economic Integration (CABEI) approved a loan of $400 million to Costa Rica, to improve the country's road network.

According to the bank, the loan is part of the "National Impact Asset Management (GAIN) Program," which includes five key road projects for the country's economic and social development.

These include the completion of the Barranca-Limonal road in Puntarenas Province. Also, the design and construction of the structures for the vehicular crossing and pedestrian bridge between the cities of Hatillos 7 and 8 in San José Province. 

Additionally, the widening of the radial road in Lindora in San José Province. Including the construction of a roundabout at the intersection in San Rafael in Alajuela Province. 

Also, the pedestrian bridges on National Route 32 from San José to Limón, which together will total 401.5 kilometers between built, widened and rehabilitated.

The plan also contemplates allocating resources from the financing to the National Roads Council (Conavi) for road conservation investments.

It also includes the final design to determine the technical, financial, environmental, social and climatic feasibility and profitability of three other projects: the road improvement between Guacimal and Santa Elena in Monteverde in Puntarenas Province. 

Additionally, the expansion to four lanes of the Heredia highway. And the design of tunnels false tunnels on National Route 32 in the Braulio Carrillo National Park section.

Subcomponents such as supervision, external auditing, and socio-environmental and climate management, which are intended to contribute to reducing the physical risk of investments, mitigating climate change and improving the program's environmental and social management, are also contemplated, as well as the creation of 1,389 jobs during project execution, said CABEI in its statement.

The loan is for a 20-year term with a five-year grace period, and does not require a sovereign guarantee, they said.

This is one of many loans requested by Costa Rica to Cabei. Recently, the bank approved a credit line for $150 million to improve the state-owned Electricity Institute (ICE).

What else could the Costa Rican government do instead of borrowing money from banks to finance public projects?
We would like to know your thoughts on this story. Send your comments to news@amcostarica.com

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