Costa Rica, Cabei ink sewerage loan

Costa Rican President Carlos Alvarado and finance minister Rocío Aguilar signed a US$55.1mn loan agreement with the Central American Bank for Economic (Cabei) to finance a sewerage and flood control program in Limón province.

The loan has a 20-year maturity with a five-year grace period, the Costa Rican government stated in a release.

National water utility AyA and the national service of underground water, irrigation and drainage (Senara) are expected to provide US$1.6mn to co-finance certain actions under the program.

One of the program's components entails the construction of 10.3km of sewerage main lines, 24 pumping stations and 65.8km of pipelines for the local sewerage network, which will mean imply he installation of 7,776 new household connections.

Investments in these improvements will be US$42.3mn, of which US$42mn will come from Cabei, with the remainder to be provided by AyA, which is responsible for the project.

The project's main objectives are to increase the wastewater treated at a local marine outfall, as well as to increase sewage coverage.

Some 43,834 residents in the neighborhoods of Limoncito, Envaco, Pueblo Nuevo, and Los Baños are expected to benefit from this project.

A second component under the program involves the construction of flood mitigation system in the lower basin of Limoncito river. This project will require investments of US$14.27mn, of which US$13mn will come from the Cabei loan. Senara will be in charge of carrying out the project and providing the remaining investment.

Some 23,729 residents of Limoncito neighborhood will benefit from the works, which also include complementary actions at two local ravines.

The program forms part of the current government's development and public investment plan 2019-2022.

PICTURED: Costa Rican president Carlos Alvarado holds the signed document. CREDIT: Presidencia de Costa Rica.