The European Investment Bank (EIB) has approved a $250m loan to Costa Rica to finance the development of the country’s first electric train system.

The loan, provided through EIB Global, marks EIB’s initial lending operation in Costa Rica and the first in over a decade.

It also represents the first time the EIB has partnered with the Central American Bank for Economic Integration and the Green Climate Fund on a project in Costa Rica.

Republic of Costa Rica President Rodrigo Chaves said: “The electric train is no longer just a dream, or a promise left on paper. Today, it is a concrete and viable decision, financially backed by three international entities that believe in Costa Rica and its people.

“Unlike previous proposals that were unsustainable, this one is solid, fiscally responsible, and will not require state subsidies. Because the train of progress doesn’t wait – we’re all on board.”

INCOFER, Costa Rica’s national railway authority, will be responsible for the project’s implementation.

The planned electric train system will consist of two double-track lines spanning more than 51km between Paraíso, San José, and central Alajuela.

The project includes the acquisition of 28 electric train units, the construction of 30 stations, two terminals, and nine crossings, with a scheduled service frequency of every ten minutes throughout the week.

The new rail service is expected to accommodate more than 100,000 daily commuters in the greater San José metropolitan area, home to more than three million residents.

In addition, the rail network aims to improve access to employment and education, with attention to inclusivity for women, who represent the majority of public transport users in the region.

INCOFER executive president Álvaro Bermúdez Peña said: “We set out to optimise this project with a clear vision: to deliver Costa Ricans a solid proposal aligned with the real needs of the population, without unnecessarily indebting the country.

“It represents not only technical progress, but also a fulfilled commitment to Costa Rica.”

The electric train project is anticipated to reduce carbon dioxide emissions by 18,000t annually.

This initiative aligns with Costa Rica’s climate objectives and leverages the country’s nearly fully renewable energy generation.

The project forms part of the European Union’s Global Gateway initiative, which seeks to facilitate sustainable infrastructure through international partnerships.

EIB vice-president Ioannis Tsakiris said: “This project is a great example of strategic cooperation between the European Union and Costa Rica, which sees, for the first time ever, the EIB co-financing a project in the country with the Central America Bank for Economic Integration and the Green Climate Fund.”