World Bank loans Costa Rica 340 million to improve infrastructure

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By LatAm Reports Staff Writers

The World Bank’s executive board approved on Monday a new project of 370 million dollars (341.7 million euros) to increase infrastructure and services resilient to climate and disasters in Costa Rica.

Specifically, the project will be financed by a loan of $350 million (EUR 323 million) from the World Bank and $20 million (18.4 million euros) in concessional financing of the World Concessional Financing Facility, a multilateral partnership that was established to assist with the financial needs of middle-income countries receiving large numbers of refugees.

The project provides funding for the reconstruction of infrastructure damaged in recent disasters and strengthens the capacity to manage the disaster risks of Costa Rica, thus ensuring that two million people benefit, almost 40 per cent of the country’s population.

Recent disasters, such as Hurricane Eta (2020), extreme rainfall of July 2021 and tropical storm Bonnie (2022), caused great damage, for example, in public establishments, water resources management and in the transport sector, in 37 of the 82 cantons of Costa Rica.

With this programme, the country will invest in critical infrastructure for flood control and slope stabilization, as well as in the reconstruction of bridges and roads. It will also build and equip multipurpose emergency shelters and disaster response facilities. In addition, it will fund investments to improve local early warning systems and services in several vulnerable river basins.

Costa Rica is making progress to ensure the resilience of public investments. However, it remains highly exposed to extreme weather events and natural hazards. This project will support our priority to invest in resilient infrastructure and services, said Costa Rica’s Minister of Finance Nogui Acosta.

The implementation of the project will be carried out by the National Commission for Risk Prevention and Emergency Care (CNE). The project has an inclusion component as it benefits people living in cantons where infrastructure needs already existed and who also receive a huge number of refugees and migrants, excessively, compared to other regions of the country.

This project complements the ongoing cooperation in disaster risk management between Costa Rica and the World Bank, explained the World Bank country manager for Costa Rica and El Salvador, Carine Clert

This article has been translated from the original which first appeared in EL Pais