Release date: 27 June 2025
Promoter – Financial Intermediary
INSTITUTO COSTARRICENSE DE ELECTRICIDADLocation
Description
This is a sub-operation of the EU's Global Gateway in Costa Rica (CR) under the ELECTRICITY INTEGRATION OF CENTRAL AMERICA Lending Envelope, which contributes to implement the Global Gateway Investment Agenda (GGIA) flagship initiative in Central America. Through the public utility company Instituto Costarricense de Electricidad (ICE), this flagship project will finance the construction and upgrade of transmission and distribution grids while supporting initiatives to promote renewable energy generation in Costa Rica.
Additionality and Impact
Through the country's public utility company Instituto Costarricense de Electricidad (ICE), this operation will finance investments in transmission, distribution, and renewable electricity generation infrastructure in Costa Rica. As such, the project will support the regional integration of electricity networks in Central America, thereby directly contributing to the Global Gateway Investment Agenda (GGIA) flagship initiative in the region.
The project will likely address market failures of negative externalities (in particular climate and environmental ones) through the reduction of carbon emissions and air pollution, and the improving of security and reliability of power supply, as well as through avoided public health costs.
By supporting Costa Rica's energy transition and carbon neutrality goals and achievement of the National Decarbonisation Plan (2018-2050), the operation is fully aligned with the EU Multi-annual Indicative Programme's (2021-2027) key priority area in Costa Rica.
The competitive EIB financing will support ICE to proceed with the works with the potential to crowd-in additional investors, both public and private. In particular, the EIB will provide customised financial terms (including tailored loan tenor and grace period) and technical guidance aimed at enhancing the Promoter's operational standards, with particular emphasis on improving environmental and social practices.
The operation will support the advancement of several Sustainable Development Goals (SDGs), particularly SDGs 7, 11, 13 and 17.
Objectives
The loan aims to expand the capacities and improve the quality and reliability of electricity transmission and distribution, as well as of electricity generation in the country.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
USD 200 million (EUR 173 million)
Total cost (Approximate amount)
USD 400 million (EUR 345 million)
Environmental aspects
The promoter shall implement and operate the investments in conformity with national laws, as well as EIB's Environmental and Social Standards.
Procurement
The promoter shall ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement.
Status
Signed - 22/12/2025