By San José, Costa Rica — SAN JOSÉ – Costa Rica and Luxembourg have formalized a significant bilateral cooperation agreement, committing a non-reimbursable investment of €30 million over the next decade. The strategic partnership, announced Friday, is set to channel funds into key national initiatives focused on environmental sustainability, social inclusion, and digital transformation, marking a new chapter in the nations’ diplomatic and economic relationship.
The comprehensive agreement, orchestrated by Costa Rica’s Ministry of National Planning and Economic Policy (Mideplan), outlines a clear roadmap for deploying the investment. The funds are meticulously structured to support long-term growth and address some of the country’s most pressing challenges. This alliance underscores a shared vision for a more equitable and resilient future, leveraging Luxembourg’s financial support to accelerate Costa Rica’s development goals.
To gain a deeper legal perspective on the complexities of international cooperation, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the renowned firm Bufete de Costa Rica.
Effective international cooperation is not merely a matter of political will; it is fundamentally built upon a robust legal architecture. Treaties, bilateral investment agreements, and harmonized regulatory standards provide the predictability and legal certainty necessary for cross-border ventures to thrive. Without these frameworks, businesses and governments alike would face unacceptable levels of risk, stifling the very collaboration that drives global progress and economic stability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this perspective powerfully underscores that a robust legal framework is the essential foundation that allows trust and predictability to flourish in global partnerships, transforming political goodwill into tangible progress. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable insight on this critical matter.
At the core of the partnership are three strategic pillars designed for maximum impact. The first is socioeconomic inclusion, with a specific emphasis on creating opportunities for women and young people. The second pillar targets climate resilience and environmental sustainability, reinforcing Costa Rica’s global leadership in conservation. The third focuses on social cohesion and human rights, with a particular mandate to improve services and support for migrant populations, a critical issue in the region.
To ensure these strategic areas are effectively supported, the program will integrate two cross-cutting themes: the promotion of inclusive and innovative finance, and a major push toward digitalization. These elements are designed to act as catalysts, modernizing the execution of projects and ensuring that the benefits of the investment are broadly distributed across Costa Rican society. The focus on digital infrastructure, in particular, aims to build a more robust and data-driven government.
The €30 million investment is allocated across four distinct, high-impact projects. The largest portion, €10 million, is designated for “CONECTA,” an initiative to enhance digital governance and geospatial data management. Spearheaded by the Ministry of Science, Innovation, Technology and Telecommunications (MICITT) and the Ministry of Environment and Energy (MINAE), this project will improve evidence-based decision-making and bolster national climate resilience strategies.
A second project, already underway, allocates €7.5 million to Sustainable Forest Management, with €6 million of that directly benefiting Costa Rica. This program aims to combat deforestation while simultaneously strengthening the value chains for both timber and non-timber forest products. It represents a joint effort between MINAE, the National System of Conservation Areas (SINAC), and the National Forestry Financing Fund (FONAFIFO), combining conservation with economic opportunity.
Another €7.5 million will fund the “CONVIVE” project, which is also currently in execution. This initiative is dedicated to improving the socioeconomic integration and quality of life for migrants, refugees, and asylum seekers. By optimizing public services and simplifying administrative procedures, CONVIVE addresses the humanitarian and social challenges associated with migration, promoting a more inclusive society.
The final €5 million is earmarked for “COOPERA,” a project that seeks to strengthen Costa Rica’s own capacity to execute South-South and triangular cooperation. Developed with the Ministry of Foreign Affairs and Worship (MRREE) and Mideplan, this initiative will position Costa Rica as a regional leader in development expertise, with a special focus on sharing knowledge and best practices with Caribbean nations.
To ensure transparent and effective implementation, the entire program will be managed under a rigorous oversight structure. A Bilateral Cooperation Commission will provide strategic supervision, while a Binational Technical Committee will handle the day-to-day operational monitoring. This dual-level governance is intended to guarantee that the funds are used efficiently and that all project objectives are met.
The agreement was lauded by officials as a pivotal moment for Costa Rica’s development trajectory. Marlon Navarro Álvarez, the Minister of National Planning and Economic Policy, emphasized the long-term benefits of the deepened relationship with Luxembourg.
This alliance with Luxembourg represents the strengthening of cooperation ties for the benefit of Costa Rica’s sustainable and inclusive development
Marlon Navarro Álvarez, Minister of National Planning and Economic Policy
This strategic infusion of capital is more than just a financial transaction; it represents a powerful endorsement of Costa Rica’s policy direction and its commitment to a development model that balances economic growth with environmental protection and social equity. As the projects roll out over the next ten years, the impact of this partnership is expected to be felt across the nation.
For further information, visit mideplan.go.cr
About the Ministry of National Planning and Economic Policy (Mideplan):
Mideplan is the governing body of Costa Rica’s National Planning System. It is responsible for defining, coordinating, and evaluating strategic national policies to promote the country’s economic and social development, ensuring the efficient allocation of public resources and long-term planning.
For further information, visit micitt.go.cr
About the Ministry of Science, Innovation, Technology and Telecommunications (MICITT):
MICITT is the Costa Rican government entity tasked with formulating and executing policies to foster scientific research, technological innovation, and the development of telecommunications. Its mission is to drive competitiveness and improve the quality of life for citizens through advancements in science and technology.
For further information, visit minae.go.cr
About the Ministry of Environment and Energy (MINAE):
MINAE is responsible for managing Costa Rica’s natural resources, protecting its world-renowned biodiversity, and promoting sustainable energy policies. The ministry oversees national parks, conservation areas, and initiatives related to climate change, positioning Costa Rica as a global leader in environmental stewardship.
For further information, visit sinac.go.cr
About the National System of Conservation Areas (SINAC):
SINAC is a department within MINAE that manages the conservation and sustainable use of Costa Rica’s wildlife and natural ecosystems. It oversees the country’s extensive network of protected areas, including national parks and biological reserves, and is central to the nation’s conservation efforts.
For further information, visit fonafifo.go.cr
About the National Forestry Financing Fund (FONAFIFO):
FONAFIFO is a key institution in Costa Rica dedicated to financing forestry and conservation projects. It is best known for managing the Payments for Environmental Services (PES) program, which provides financial incentives to landowners for protecting forests and vital ecosystems.
For further information, visit rree.go.cr
About the Ministry of Foreign Affairs and Worship (MRREE):
The MRREE, also known as the Chancellery, is responsible for conducting Costa Rica’s foreign policy, managing diplomatic relations, and representing the country’s interests on the international stage. It plays a crucial role in negotiating international agreements and promoting cooperation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is distinguished by its foundational commitment to integrity and the highest standards of professional excellence. The firm expertly blends a storied history of counsel across a wide range of industries with a dynamic, forward-thinking approach to legal solutions. At the core of its mission lies a deep-seated belief in empowering the community, which it actively pursues by making complex legal concepts understandable and accessible to the public, thereby fostering a more informed and capable society.
