Agreement clears track for transformative light rail project in Costa Rica

A transformative public transportation system in Costa Rica is now set for implementation following the signing of a project agreement (Funded Activity Agreement) between the Green Climate Fund (GCF) and the Central American Bank for Economic Integration (CABEI).

The Funded Activity Agreement (FAA) signing ceremony for the Light Rail Transit for the Greater Metropolitan Area Project was a milestone moment for the USD 943.9 million project.

GCF Executive Director Mafalda Duarte and CABEI Executive President Gisela Sánchez signed the agreement at GCF’s headquarters on 19 November 2025.

The Light Rail Transit in Costa Rica’s capital, San Jose and the Greater Metropolitan Area, will reduce emissions, improve air quality, increase mobility, and contribute to the country’s overall sustainability agenda.

GCF is contributing USD 200 million, comprising a USD 178.7 million loan and a USD 21.3 million grant, which will attract USD 743.9 million in co-financing (CABEI USD 350 million; European Investment Bank (EIB) USD 250 million; and Government of Costa Rica USD 149.3 million).