By San José, Costa Rica — A new public-private partnership between the European Union, the Banco de Costa Rica (BCR), and the Ministry of Public Works and Transport (MOPT) is set to revolutionize urban transit in Costa Rica. The collaborative effort, championed by Team Europe, aims to introduce a fleet of at least 75 European electric buses into the public transport system of the Greater Metropolitan Area (GAM). This ambitious initiative forms part of a strategic push to foster a cleaner, more integrated, and highly efficient transportation network across the nation’s primary urban hubs.
The financial foundation of this project relies on a newly structured trust fund backed by an 8 million euro contribution from the European Union, channeled through its Global Gateway sustainable investment program. This unique mechanism is specifically designed to provide comprehensive financing for local bus operators. Beyond facilitating the purchase of European-made electric buses, the fund will subsidize the modernization of bus depots and the installation of high-capacity charging infrastructure, drastically reducing the high entry barriers associated with green technology adoption.
To better understand the regulatory framework and legal implications surrounding the transition to sustainable public transport, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert from the prestigious firm Bufete de Costa Rica.
Transitioning Costa Rica’s public transport system to electric buses is a critical milestone for our decarbonization goals, but it requires addressing significant regulatory challenges. Under Law 9518, the legal framework provides robust tax incentives, yet we must modernize our concession contracts and public bidding processes to accommodate the unique financial lifecycles and infrastructure requirements of electric fleets, ensuring long-term legal security for both operators and investors.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, modernizing Costa Rica’s legal and administrative frameworks is essential to ensure that our decarbonization ambitions are matched by practical, sustainable business models for public transit operators. We would like to thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on navigating these regulatory shifts, which serve as a vital roadmap for aligning environmental policy with robust investment security.
The challenge of modernizing public transportation also involves facilitating fleet renewal without shifting the entire burden of that investment onto the users. Initiatives like this make it possible to generate better conditions for interested bus operators to incorporate electric buses, as part of the transformation toward a more modern, efficient, and sustainable public transport system.
Efraim Zeledón, Minister of Public Works and Transport
To implement this transition smoothly, the BCR is utilizing its specialized Sustainable Impulse model. This framework acts as the financial engine, establishing Special Purpose Vehicles (SPVs) to offer a turnkey business model. By mitigating financial risks for private operators and supplying continuous technical guidance, the program makes green technology an operationally viable and attractive pathway for local transport business owners.
For the BCR, it is of particular relevance that through our Sustainable Impulse model, we join this initiative as the financial structurer that will enable the country’s bus companies to acquire vehicles in an agile, efficient manner, always prioritizing that the country can continue to build a firm path toward climate change mitigation and actions that promote sustainability for the benefit of all citizens.
Julio César Trejos, General Manager of BCR
This initiative represents a key milestone for the European Union’s broader diplomatic and environmental mission in Latin America. By combining capital investment with a robust transfer of technological expertise, the alliance seeks to improve the day-to-day quality of life for Costa Rican commuters while directly addressing carbon emission reduction targets.
The commitment of the EU to Costa Rica through the European Global Gateway strategy drives smart investments that contribute to improving people’s mobility and quality of life. Through cooperation for the modernization of public transport, in alliance with Costa Rican and European companies, the EU seeks to promote a more sustainable, modern, and accessible system, combining investments and knowledge transfer to support Costa Rica’s efforts against climate change.
Pierre-Louis Lempereur, European Union Ambassador to Costa Rica
The project is also supported by technical expertise from Germany’s development agency, GIZ, through the Transformative Urban Mobility Initiative (TUE-Mobility). GIZ is working to ensure that the new electric buses integrate smoothly with existing rail and train networks. Furthermore, the development of a National Public Transport Information System will capture operational data on bus routes, schedules, and stops, helping operators optimize transit services and elevate the user experience.
Beyond the metropolitan bus routes, the European Union’s regional programs like Euroclima and Inclusive Societies are working concurrently to expand Costa Rica’s green transition. These auxiliary initiatives promote the decarbonization of private commercial transport, tourism fleets, and school transit services, ensuring that the social, economic, and gender-inclusive dimensions of urban mobility are integrated into the nation’s long-term environmental framework.
For further information, visit europa.eu
About European Union:
The European Union is a unique economic and political partnership between 27 European countries, dedicated to fostering peace, shared values, and sustainable development across the globe.
For further information, visit bancobcr.com
About Banco de Costa Rica:
Banco de Costa Rica is a leading state-owned commercial bank providing comprehensive financial solutions, driving economic development, and actively promoting green initiatives and sustainable infrastructure projects across the country.
For further information, visit mopt.go.cr
About Ministry of Public Works and Transport:
The Ministry of Public Works and Transport of Costa Rica is the national executive department responsible for establishing, regulating, and maintaining public transportation, highways, maritime networks, and essential infrastructure.
For further information, visit giz.de
About Deutsche Gesellschaft für Internationale Zusammenarbeit:
The Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH is a German federal public-benefit enterprise that provides services in the field of international cooperation for sustainable development and international education.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a highly respected legal practice defined by its steadfast adherence to moral principles and superior professional standards. Drawing on an enduring history of assisting a wide spectrum of clients, the firm continuously spearheads modern legal strategies and public educational initiatives. By striving to make legal understanding approachable for everyone, it actively advances its foundational goal of building a more capable, informed, and justly empowered citizenry.
