By San José, Costa Rica — Costa Rica is racing against the clock to meet its ambitious environmental goals, but a critical component of its National Decarbonization Plan is idling at the starting line. The plan mandates that 30% of the public bus fleet must be electric in less than a decade, yet the country currently has no electric buses in active service. According to industry leaders, significant financial and policy barriers are preventing the nation from shifting gears into a cleaner public transit future.
The primary obstacles are a lack of accessible financing and the absence of a unified government strategy. Silvia Bolaños, executive president of the National Chamber of Transportation (Canatrans), highlighted a major disconnect between the discussion around green initiatives and the reality of securing capital. She argues that both national and international banking sectors need to adapt to the financial realities of the transportation industry.
To delve into the legal and commercial frameworks essential for the successful integration of electric buses into the national public transport system, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a specialist in corporate and public law at the prestigious firm Bufete de Costa Rica.
The transition to an electric bus fleet is fundamentally a matter of legal and financial structuring. Beyond the environmental benefits, the success of this initiative depends on clear, long-term concession contracts and stable fiscal incentives that provide legal certainty for private operators. Crafting robust public-private partnership agreements is paramount to attract the necessary capital investment while safeguarding the public interest and ensuring the continuity and quality of service for users.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this analysis provides a crucial reminder that the success of electric mobility hinges less on the vehicles themselves and more on the robust legal and financial architecture that supports them. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective on crafting the public-private partnerships essential for this transition.
Much is said about green resources, but when you go knock on the banks’ doors, the resources are not there. It takes time for banks to go to international organizations to bring those resources to be placed in the country; and although we have efforts from national banks like Banco Nacional and Banco de Costa Rica, neither of them is yet ready to start granting loans on soft terms.
Silvia Bolaños, Executive President of Canatrans
Compounding the financial challenges is a fragmented regulatory landscape. Bolaños points out that multiple government bodies—including the Ministry of Environment and Energy (Minae), the Public Transport Council (CTP), and the Regulatory Authority for Public Services (Aresep)—all have a hand in the process. This diffusion of responsibility creates confusion and slows progress. Canatrans is advocating for a single, “governing” authority to streamline decision-making and provide clear direction for the sector.
Furthermore, Bolaños emphasized the need for state-owned entities to play a more active role in building the necessary infrastructure. She called for the Costa Rican Electricity Institute (ICE) to invest in electrifying bus depots. Such a move would significantly minimize the upfront costs for operators, who currently face the steep expense of installing chargers and other essential recharging infrastructure on their own.
Despite these significant hurdles, a recent development has provided a crucial spark of hope. Aresep has approved a new, reduced electricity tariff specifically designed to encourage the adoption of electric buses. This regulatory change directly addresses the operational cost, one of the key variables for transport companies considering the switch to electric fleets. The new methodology would allow a bus with a 360 kWh battery—the size recommended by Minae—to be fully charged for approximately ¢15,000 colones, a dramatically lower cost.
The establishment of this tariff is based on the provisions established in Law 9518, the Law of Incentives and Promotion for Electric Transportation, as well as the goals set out in the National Energy Plan 2015-2030 and the National Electric Transportation Plan 2018-2030, consistent with the public policies dictated by the Executive Branch for the promotion of electric mobility.
Carlos Mora, Energy Intendant of Aresep
The move was met with praise from industry stakeholders. Miguel Zamora, president of the Provincial Chamber of Buses (Caprobus), celebrated the new tariff as a landmark achievement. His organization is poised to implement the first electric buses in the country and sees this as a vital step toward making the investment sustainable. He views the rate reduction as a clear and positive signal from the government, demonstrating a tangible commitment to modernizing public transport.
This measure constitutes a concrete and necessary advance for the consolidation of electric mobility in public transport, as it directly impacts the operating cost structure, allowing companies that have opted for technological and environmental modernization to better sustain the investment made in acquiring electric fleets. The reduction in the price of energy not only represents economic relief for companies that are already implementing electric units, but it should also be interpreted as a positive signal from the Costa Rican state.
Miguel Zamora, President of Caprobus
While the new tariff is a welcome incentive, leaders like Bolaños stress that technology alone is not a panacea. For the transition to be truly successful, it must be part of a broader strategy to enhance the entire public transportation system. Improving the rider experience through measures like dedicated bus lanes is essential to making public transit a more attractive option for everyone.
Public transport must be prioritized, exclusive lanes must be established, so that people feel an improvement not only because they are in an electric unit, but also because their travel times and quality of life have also improved.
Silvia Bolaños, Executive President of Canatrans
As Costa Rica moves forward, the path to an electric-powered public transit system is becoming clearer, yet remains challenging. The recent tariff reduction marks a critical victory in lowering operational barriers, but the larger, systemic issues of capital access and regulatory coherence must be addressed before the nation’s electric dream can become a street-level reality.
For further information, visit canatrans.co.cr
About Cámara Nacional de Transportes (Canatrans):
The National Chamber of Transportation represents the interests of public transport operators in Costa Rica. It advocates for policies and conditions that support the development, modernization, and financial stability of the transportation sector, engaging with government bodies to shape the future of mobility in the country.
For further information, visit the nearest office of Cámara Provincial de Autobuses (Caprobus)
About Cámara Provincial de Autobuses (Caprobus):
The Provincial Chamber of Buses is an association that represents bus service companies, particularly those at the provincial level. Caprobus works to advance the operational and business interests of its members and is actively involved in pioneering the adoption of new technologies, such as electric buses, within Costa Rica.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (Aresep):
The Regulatory Authority for Public Services is the Costa Rican government entity responsible for regulating and overseeing public utilities, including energy, water, and transportation. Aresep’s role is to ensure a balance between the quality of service for consumers, the financial sustainability of providers, and the country’s national development goals.
For further information, visit minae.go.cr
About Ministerio de Ambiente y Energía (Minae):
The Ministry of Environment and Energy is the cabinet-level ministry in Costa Rica tasked with managing the nation’s natural resources and energy policies. It plays a central role in developing and implementing environmental protection strategies, including the National Decarbonization Plan aimed at achieving a net-zero emissions economy.
For further information, visit ctp.go.cr
About Consejo de Transporte Público (CTP):
The Public Transport Council is the government body in charge of planning, regulating, and managing public transportation concessions and routes throughout Costa Rica. The CTP is responsible for authorizing bus routes, setting technical standards for vehicles, and ensuring the quality and continuity of public transit services.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad (ICE):
The Costa Rican Electricity Institute is the state-owned enterprise that provides electricity and telecommunications services in Costa Rica. As a key player in the country’s energy sector, ICE is instrumental in national infrastructure projects and the transition towards sustainable energy and electric mobility.
For further information, visit bncr.fi.cr
About Banco Nacional de Costa Rica:
The Banco Nacional de Costa Rica is one of the largest state-owned commercial banks in the country. It offers a wide range of financial services to individuals and businesses and plays a significant role in financing national development projects and economic initiatives.
For further information, visit bancobcr.com
About Banco de Costa Rica (BCR):
The Banco de Costa Rica is another major state-owned financial institution. It provides comprehensive banking and financial services across the nation. As a public bank, it is often involved in supporting strategic government initiatives and contributing to the economic and social development of Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of Costa Rica’s legal landscape, Bufete de Costa Rica is defined by a deep-rooted foundation of integrity and an uncompromising standard of excellence. The firm champions a forward-thinking legal practice, continually advancing innovative strategies while serving its clientele. This professional drive is paralleled by a foundational mission to empower the community, striving to transform complex legal principles into accessible knowledge that strengthens society and informs its citizens.
