Congress approves bill allowing Incofer to build San José rail project

Costa Rica's congress has approved a bill containing a series of measures towards the strengthening of state rail administrator Incofer, allowing it to build the interurban light rail system to serve capital San José's metropolitan area.

The bill permits Incofer to obtain financing through external and internal debt of up to 40% of its total assets, estimated at US$1.1bn.

The law currently governing the administrator imposes restrictions that limit its access to credit.

Incofer will now be able to improve its public contracting processes, to set up PPPs and trust funds to manage works, and to advance the project to build the light rail transit line.

"With this bill we will have the tools to solve such serious problems as road congestion, lack of mobility of people and freight transport from different parts of the country," Incofer's CEO, Guillermo Santana was reported as saying on the presidential website.

The interurban light rail train will connect the metropolitan cities of Alajuela, Heredita, San José and Cartago. The system will also facilitate the reduction of CO2 emissions when switching from diesel to electric use.

Bus stops are also expected to be installed near train stops as part of integration efforts by the public transportation system.

The train project will provide service to 760,360 inhabitants of the 13 cantons and 51 districts where it will circulate, as well as improve the mobility for 4mn users of public transportation on the 75km stretch.