IDB approves US$850 million conditional credit line (CCLIP) for infrastructure projects in Costa Rica and first individual loan for US$300 million

The Inter-American Development Bank approved a US$850 million conditional credit line for investment projects (CCLIP) for transportation infrastructure projects in Costa Rica and an initial US$300 million loan for a road infrastructure program.

This CCLIP represents the highest amount approved for Costa Rica in the IDB’s history and will finance investments in sectors supervised by Costa Rica’s Ministry of Public Works and Transportation (MOPT, its initials in Spanish), including co-investments with municipal governments.

Fundamental to the Bank’s strategy in Costa Rica is making the country more competitive, which means strengthening its physical infrastructure. The government plans to boost competitiveness by refurbishing physical infrastructure with investments that had been postponed for decades. This is especially important in light of various trade agreements that are about to take effect, such as CAFTA and the Costa Rica–Panama FTA, as well as other agreements being negotiated with the EU and China.

Considered in proportion to Costa Rica’s population, this credit line is the IDB’s largest investment in the transportation sector in the last ten years. It will enable Costa Rica to modernize its transportation infrastructure, including roads, ports, railroads and air transportation, with an emphasis on economic and social integration.

The US$300 million approved for the CCLIP’s first individual loan operation will be used to improve the nation’s highway network, which is run by the National Highway Council (CONAVI, its initials in Spanish) and comprises both paved and un-paved roads. This operation will include improvements, reconstruction and repair of approximately 500 kilometers of highways and bridges.

In addition, the credit line provides for investments in rural roads, in order to improve competitiveness throughout the country and facilitate transportation of goods produced in outlying areas.

The CCLIP will be executed by the MOPT, which will also execute the individual loan through CONAVI.