The World Bank will improve resilient infrastructure and services in Costa Rica

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

WASHINGTON CITY, March 8, 2024. The World Bank Board of Executive Directors today approved a new project to increase climate- and disaster-resilient infrastructure and services in Costa Rica. The project provides financing for the reconstruction of gray and green infrastructure damaged in recent disasters and strengthens Costa Rica's capacity to manage disaster risks , seeking to benefit two million people, almost 40 % of the country's population.

Some recent disasters, such as Hurricane Eta (2020), extreme rainfall in July 2021 and Tropical Storm Bonnie (2022), caused extensive damage, for example, to public facilities, water resources management and the sector. of transportation, in 37 of the 82 cantons of Costa Rica .

The USD 350 million Climate Resilient Recovery and Territorial Development Project helps address this damage by collaborating in reconstruction efforts and providing resilient infrastructure to people living in highly vulnerable regions. With this program, the country will invest in critical infrastructure for flood control and slope stabilization, as well as the reconstruction of bridges and roads . It will also build and equip multipurpose emergency shelters and disaster response facilities. In addition, it will finance investments to improve early warning systems and services at the local level, in several vulnerable river basins.

" Costa Rica is moving forward to guarantee the resilience of public investments and the protection of human life. However, it remains highly exposed to extreme climate phenomena and natural risks, which increases the impact of these risks. This project is aligned with the strategy of mitigation and adaptation to climate change in the country and will support our priority of investing in resilient infrastructure and services, to protect people who live in the most vulnerable areas," declared Nogui Acosta Jaén, Minister of Finance of Costa Rica .

The implementation of the project will be in charge of the National Commission for Risk Prevention and Emergency Response (CNE). The project has an inclusion component since it benefits people who live in cantons where infrastructure needs already existed and which, in addition, receive a huge number of refugees and migrants , disproportionately compared to other regions of the country. Since disasters and the elimination of support services disproportionately affect women, the project also has a strong gender component; For example, the physical safety and needs of women and girls are taken into account when designing shelters.

“ This project complements the disaster risk management cooperation that currently exists between Costa Rica and the World Bank, and is part of a broader national and regional response strategy on human mobility and community resilience in collaboration with the Inter-American Bank Development Agency (IDB), the International Monetary Fund ( IMF ), the International Organization for Migration (IOM) and the United Nations High Commissioner for Refugees (UNHCR) ,” said Carine Clert, World Bank country manager for Costa Rica and El Salvador . “ The project will finance the strengthening of capacities to ensure the sustainability of its investments and will include mechanisms to achieve the participation of citizens and interested actors so that priority is given to reconstruction and infrastructure works .”

The project will be financed with a US$350 million loan from the World Bank and US$20 million in concessional financing from the Global Concessional Financing Facility, a multilateral alliance established to assist with the financing needs of middle-income countries that They receive a large number of refugees. Starting in December 2022, Costa Rica can receive financing from the Global Concessional Financing Facility . The concessional financing was made possible by a contribution from the United States of America.