Costa Rica secures US$225mn loan to finish San Carlos highway

Costa Rica has secured a US$225mn loan to complete the delayed San Carlos highway, planned to connect the central plateau and the country’s north. 

The government signed an agreement with the Inter-American Development Bank (IDB), which will grant the loan to finish the project that has been under construction for around 18 years. 

According to Prensa Latina, the loan is part of the financing cooperation agreement for both parties’ joint road infrastructure and urban mobility program. The program is expected to improve competitiveness of, among others, the agricultural and tourism sectors in Huetar Norte region. 

Prensa Latina quoted finance minister Nogui Acosta as saying that the funds will allow to settle the debt with San Carlos canton.

Taiwan's RSEA Engineering oversaw construction initially, but left the country in 2007 after the government cut diplomatic relations in favor of China. A year later, works were awarded to local company Sánchez Carvajal. 

However, delays in expropriations, a lack of technical studies and legal challenges caused delays.

The project was indefinitely suspended in 2018 following an appeal from an environmental group saying that the highway endangered La Culebra wetland, a claim that was later dismissed.

Close to US$290mn have been spent on the project so far, according to media outlet CRHoy.