Bumpy Costa Rica Roads May Finally Become a Thing of the Past.

Costa Rica’s notoriously challenging road system could get a lot better; the Interamerican Development Bank (BID) has approved an $850 million loan to fund improved roads, railways, and pedestrian areas throughout the country. Included in the plans are road repairs and improvements, bicycle paths, airport construction, and new highways.

President Óscar Arias, the Minister of Public Works and Transport (MOPT) and the Minister of the Treasury, worked together to obtain the BID loan. Arias has asked Costa Rica’s congressmen to approve the loan, stating “we’re respectfully calling upon our representatives, so that they will approve [the loan] as quickly as possible, since we have already waited many years to improve our infrastructure.”

To qualify for the loan, the Costa Rica government must pony up $200 million of its own money, jumping the total funds tally from $850 million to $1.05 billion for transportation and infrastructure improvements. the National Transportation Authority (Conavi) would invest the money over a period of 15 years, which is the time necessary to complete all currently-proposed projects.

If the Costa Rican legislature votes to accept the loan, the country’s infamous roads will receive the bulk of BID’s cash infusion, beginning with 60 new bridges and bridge repairs and bicycle paths along several congested areas, like San José’s Circunvalación. In addition, a third highway lane will be build between San Ramón in Alajuela and Barranca (Puntarenas), similar to the route between Ciudad Quesada and Florencia.

Once approved, $100 million will head straight for the Heredia-San José-Cartago-Alajuela train line, which has been in the works for years. Piggy-backing on the success of San José’s downtown train line, which runs from San Pedro to Rohrmoser, the new consumer train system would help connect Costa Ricans commuters to their work locales. This system would be more gas efficient, faster, and less expensive for commuters that are accustomed to driving to work, and would allow Costa Rica to reduce its gasoline consumption.

Another $50 million would be budgeted to build sidewalks, pedestrian bridges, and bicycle paths around the country. Though MOPT has had many plans to improve Costa Rica transportation, they have never possessed adequate finances to fund their intentions. This injection of funds is exactly what the organization, and Costa Rica, needs to bring their roads and general infrastructure up to standard.

In terms of national debt, Karla González, Minister of the Treasury, states that the project’s 15-year plan will help spread out the loan’s funds, and will therefore not immediately affect Costa Rica’s national debt. In the last three years, in fact, Costa Rica’s national debt owed to other nations (around $3.4 billion) has gone down about 10 percentage points.

If Costa Rica’s legislatures vote to accept BID’s $850 million loan, the nation’s debt will increase by 25%. In exchange for such a significant loan, however, Costa Rica will receive a much better road system, an improved rail system, and further pedestrian benefits and safety.

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Filed under: Travel on August 13th, 2008