Costa Rica will build National Route 35 to boost the competitiveness of the Huetar Norte Region

This is an automated translation of the press release issued in Spanish

The Inter-American Development Bank (IDB) will support Costa Rica with a US$335 million program for the construction of National Route 35, in order to strengthen circulation conditions between the northern and central areas of the country and boost the competitiveness of the productive sectors of the Huetar Norte Region.

The IDB Board of Executive Directors approved a new loan of $225 million and the modification to the Transportation Infrastructure Program, by which up to US$110 million of said program will be used for the comprehensive financing of the interventions.

The new program will particularly benefit the agricultural and tourism sectors, including 75% of the products in the agricultural input value chain in the area, as well as 350 small and medium-sized businesses in the area of direct influence of the route. with the reduction of their travel time to logistics nodes. 3.2 million tourists who visit the region annually will also benefit, with significant savings in their travel times.

The IDB representative in Costa Rica, Francisco Javier Urra, highlighted that “at the IDB we are pleased to contribute to the development of strategic road infrastructure for Costa Rica, with a territorial approach that seeks to boost the competitiveness of the Huetar Norte Region by improving the conditions of mobility for agriculture, tourism and other productive activities that generate employment and prosperity in this population, while contributing to the equitable growth of the country.”

The Huetar Norte Region stands out for its tourism, productive, agricultural and livestock potential. In 2019, its exports represented 7% nationally, with pineapple, juices, concentrates and cassava being the main exported products. For its part, tourism to areas near the Arenal volcano doubled between 2016 and 2019.

However, its competitiveness is impacted by the configuration of routes to productive centers and tourist parks, which increase travel times and costs for producers and travelers.

To improve connectivity, the program aims to complete the construction of National Route 35, which connects National Route 1 (Bernardo Soto Highway) with the city of San Carlos (Ciudad Quesada and Florencia). The program will specify the construction of this route following resilient design criteria, according to the disaster and climate change risk management plan, and the implementation of a Public-Private Partnership (PPP) model for its operation and maintenance.

The IDB loan of US$225 million has a repayment period of 25 years, a grace period of 5 and a half years, and an interest rate based on SOFR. Additionally, this is the second individual loan under a Conditional Line of Credit for Investment Projects approved by the IDB Board of Executive Directors in 2019.