The U.S. Export-Import Bank (EXIM) approved a $300 million loan for the state-owned Electricity Institute (ICE), for the development of 5G technology projects in Costa Rica.

The Washington- headquartered bank is the official export credit agency (ECA) of the United States federal government. While the ICE is the Costa Rican government-run electricity and telecommunications services provider. Together with the Radiographic Costarricense SA (RACSA) and Compañía Nacional de Fuerza y ​​Luz (CNFL), they form the ICE Group.

According to the institute, the bank's decision to approve the loan was made after a review of financial information and the positive ratings provided to that financial organization and the positive review to ICE issued by firms such as Moody's and Fitch.

"With the decisions we made, we managed to obtain this letter (referring to the loan), which is a big step in the development of the business plan, the use of the spectrum and the implementation of the networks,” said Marco Acuña, president of the institute.

According to Acuña, after obtaining the loans, the institute will hold an international competition to hire the company in charge of the 5G technology implementation project.

The country continues to make progress in improving access to new technologies. In February, the first 5G internet signal tower was installed at the University of Costa Rica in San José Province.

The Institute of Electricity, in charge of the installation of the new technology, said that this new tower is part of a pilot project to start testing 5G technology in the country.

Last year, the U.S. government, through the U.S. Trade and Development Agency, ITA, signed a $723,000 non-reimbursable funds cooperation agreement for the institute.

The capital subsidized by the United States will be used to finance future technical assistance for the development and implementation of a system for diagnosing and monitoring the infrastructure of the generation, transmission and distribution businesses.

However, before being able to execute the loan, the government must present the agreement with the bank before Congress. Then, the deputies will decide whether to approve or reject the million-dollar loan.

This is one of many loans requested by the institute to international banks.  Recently, the Honduras-headquartered Central American Bank for Economic Integration (CABEI) approved a credit line for $150 million to improve the institute.   

The fund's goal is to finance the maintenance and renewal of machinery and equipment of the institution's systems, including power distribution lines and internet transmission lines and infrastructure development to enable 5G technology, among many other projects.

-----------------
What have you heard about the development of 5G technology in your country? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com