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Construction and materials

Monday
13 Oct 2025

‘Train of Progress’: EU Co-Funds Costa Rica’s First Electric Railway

13 Oct 2025  by globalconstructionreview   
Costa Rica is set to build its first electric railway, supported by a $250 million loan from the EU’s European Investment Bank (EIB). The 51-kilometre commuter line will connect the capital San José with the southeastern district of Paraíso and the northwestern city of Alajuela, featuring 30 stations and serving as the backbone of public transport for a metropolitan area of over 3 million people.


An aerial photograph of Costa Rica’s capital San José

EIB Vice President Ioannis Tsakiris said the line would enhance access to work and study opportunities. The project is co-financed by the Central American Bank for Economic Integration and the Green Climate Fund, marking the EIB’s first development funding for Costa Rica in more than ten years. Construction will be managed by the national railway authority, Incofer, ensuring local oversight and coordination.

The railway will operate 28 electric train units on two double-track lines, providing service every ten minutes. Daily ridership is expected to reach 100,000 passengers, reducing road congestion and preventing 18,000 tonnes of carbon emissions per year. Lenders highlighted that the trains will run on nearly 100% renewable energy generated within Costa Rica, reinforcing the country’s commitment to clean transport solutions.

Costa Rican President Rodrigo Chaves commented: “The electric train is no longer just a dream. Today, it is a concrete and viable decision, financially backed by three international entities that believe in Costa Rica and its people. Unlike previous proposals that were unsustainable, this one is solid, fiscally responsible, and will not require state subsidies. Because the train of progress doesn’t wait, we’re all on board.”

The project emphasizes financial sustainability and environmental benefits. By relying on renewable energy, the railway aims to cut reliance on road transport and reduce greenhouse gas emissions. Commuters will benefit from a reliable, high-frequency service that supports daily mobility while promoting sustainable urban development.

In addition to easing transport in the capital region, the railway will strengthen regional connectivity, linking key economic and residential areas. The involvement of three international lenders demonstrates confidence in Costa Rica’s governance and planning capabilities.

The line’s design and operations focus on efficiency, safety, and low environmental impact, combining modern infrastructure with clean energy usage. Once operational, it will serve as a model for sustainable urban transport in Central America, illustrating the potential for electrified public transit systems to improve mobility and reduce carbon footprints.

Construction is expected to proceed under strict regulatory and environmental standards, with Incofer overseeing timelines and quality. Upon completion, the project will deliver both social and environmental dividends, offering a cost-effective, reliable, and climate-friendly transport solution for Costa Rica’s growing metropolitan population.

Overall, this initiative represents a major milestone for sustainable transport in the region, combining international funding, renewable energy integration, and urban planning to provide long-term benefits for Costa Rica’s economy, commuters, and environment.

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