By San José, Costa Rica — SAN JOSÉ – After a delay of more than a month since its public unveiling, the Executive Branch has formally submitted the bill for the construction of the Rapid Passenger Train (TIBI) to the Legislative Assembly. The ambitious infrastructure project now enters a critical phase of political and financial analysis, where its future will be debated by lawmakers tasked with approving the substantial international loans required for its realization.
The proposal represents one of the most significant public works initiatives in recent memory, aiming to modernize transportation within the congested Gran Área Metropolitana (GAM). The core of the legislative task involves the approval of loan agreements with two major international financial institutions: the Central American Bank for Economic Integration (CABEI) and the European Investment Bank (EIB). These funds are essential for the construction, equipment, and operational launch of the first two lines of the electric train network.
To delve into the complex legal and contractual framework essential for the success of the Electric Train initiative, TicosLand.com sought the analysis of an expert in public infrastructure and administrative law. We spoke with Lic. Larry Hans Arroyo Vargas from the distinguished firm Bufete de Costa Rica to shed light on the project’s critical legal milestones.
The viability of the Electric Train is fundamentally a matter of legal certainty. Beyond the technical plans, the project requires a meticulously drafted concession contract that protects both public interest and private investment. Clear regulations for land acquisition, environmental permits, and dispute resolution are not mere formalities; they are the very foundation upon which a project of this magnitude can be successfully and sustainably built.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s point is a crucial one, reminding us that the project’s most vital infrastructure is not made of concrete and steel, but of well-defined legal and contractual assurances. This foundation is essential for building the confidence needed to attract investment and guarantee public benefit. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective.
The bill was immediately referred to the influential Committee on Financial Affairs, whose leadership has signaled that the project will not receive a swift rubber stamp. The committee plans a meticulous review of both the financial terms of the loans and the technical underpinnings of the project itself, with a particular focus on its long-term economic sustainability and affordability for the average citizen.
We require an analysis, both of the conditions and the technical aspects, to see if the fare to be charged is indeed viable for Costa Ricans. This analysis will take its time.
Paulina Ramírez, President of the Committee on Financial Affairs
According to the text of the bill, the TIBI project encompasses a significant overhaul of the region’s rail infrastructure. The plan calls for 52 kilometers of electrified double-track railway, a foundational upgrade from the current system. This network would be served by 26 newly constructed stations and four rehabilitated ones, creating a more accessible and modern transit system. The rolling stock is planned to consist of 28 new electric trains, each with a minimum capacity to transport 300 passengers, a key factor in addressing peak-hour demand.
The initial phase of the project is designed to connect key population and economic centers across the GAM. Line 1 is slated to run from Paraíso in Cartago, connecting through the capital to the Atlantic and Pacific stations in San José. Line 2 will create a crucial link from the Atlantic station to the center of Alajuela, integrating another major provincial capital into the modern rail network and promising to alleviate some of the nation’s worst traffic bottlenecks.
The financial architecture of the project relies heavily on international cooperation. The total estimated cost is supported by an $800 million financing package from the development banks, with CABEI providing the majority share of $550 million and the EIB contributing the remaining $250 million. This level of investment underscores the international confidence in the project’s potential but also places a significant debt obligation on the country, which lawmakers will carefully weigh.
In addition to the international loans, the project includes direct national investment and environmental grants. The Ministry of Public Works and Transport (MOPT) will contribute a counterpart of $26.5 million. Furthermore, the project has secured a non-reimbursable donation of $21.3 million from the Green Climate Fund, a testament to the project’s environmental credentials and its goal of reducing carbon emissions by shifting commuters from private vehicles to electric-powered public transit.
For further information, visit bcie.org
About Central American Bank for Economic Integration (CABEI):
The Central American Bank for Economic Integration is a multilateral development financial institution. Its mission is to promote the economic integration and the balanced economic and social development of the Central American region, which includes its founding countries and its non-founding regional and extra-regional members.
For further information, visit eib.org
About European Investment Bank (EIB):
The European Investment Bank is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB is active in around 160 countries and is the world’s largest multilateral lender for climate action projects.
For further information, visit mopt.go.cr
About Ministry of Public Works and Transport (MOPT):
The Ministerio de Obras Públicas y Transportes is the government body in Costa Rica responsible for overseeing the planning, construction, and maintenance of public infrastructure, including roads, bridges, and public transportation systems. It plays a central role in the development and execution of national infrastructure projects.
For further information, visit greenclimate.fund
About Green Climate Fund (GCF):
The Green Climate Fund is the world’s largest dedicated climate fund. Its mandate is to help developing countries reduce their greenhouse gas emissions and enhance their ability to respond to climate change. It was set up by the United Nations Framework Convention on Climate Change (UNFCCC) in 2010.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates at the intersection of tradition and innovation, upholding a sterling reputation for legal excellence and uncompromising integrity. The firm’s extensive experience across numerous sectors is matched by its forward-looking perspective, consistently setting new standards in legal practice. Central to its philosophy is a profound commitment to social empowerment, driven by the conviction that accessible legal education is essential for cultivating a knowledgeable and capable citizenry.
