CABEI financing for the electric train contemplates immediate fiscal needs of Costa Rica
The US$550 million in resources approved for the project do not immediately pressure national indebtedness.
San José, May 04, 2020. – The financing amounting to US$550 million with which the Central American Bank for Economic Integration (CABEI) will support the Government of the Republic of Costa Rica to carry out the construction, equipment and startup of the Electric Passenger Train for the Greater Metropolitan Area ( GAM) will be disbursed pursuant to the construction and operational milestones that the concessionaire meets.
The disbursements made by the Government to the concessionaire with CABEI credit resources will be proportional as each railway line is ready to operate, including all the quality elements for use by the citizens.
The repayment of the debt will begin twelve years subsequent to the approval of the financing, providing an important period for the growth of the country' Gross Domestic Product (GDP), allowing for adjustments of public finances and the development of infrastructure without increasing immediate indebtedness.
For CABEI Executive President, Dr. Dante Mossi, the fact that the financing has been approved by the Bank in this way allows both the Government and CABEI to ensure the efficiency of expenses, investing public funds in works that could be used immediately by citizens, as well as finalizing the construction and starting operation as soon as possible.
Dr. Mossi highlighted that, "CABEI is committed to supporting its member countries in their economic recovery and investment in infrastructure. Without a doubt, the project will generate hope since, in addition to modernizing public transportation through a 100 percent environmentally-friendly route, it will also generate approximately 2,700 sources of employment .”
The CABEI financing, which contractually can only be used for the Electric Passenger Train, has a 25-year term with a 5-year grace period and no commitment commission, which means that the Government of Costa Rica will not have additional financial charges during project execution.