Active Development AidData Chinese Aid

[China Co-Financing Fund] IDB administers $50 million loan from CHC for Infrastructure Transport Program (PIT)

$50M USD

Funder	People's Bank of China (PBC)
Recipient Organization	Government of Costa Rica
Country	Costa Rica
Start Date	Apr 03, 2014
End Date	Jun 24, 2026
Duration	4,465 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85322`

Grant Description

[China Co-Financing Fund] IDB administers $50 million loan from CHC for Infrastructure Transport Program (PIT) On April 3, 2014, the Inter-American Development Bank (IDB) signed two loan contracts with the Government of Costa Rica to finance the Infrastructure Transport Program (PIT): a $400 million loan that IDB issued from its ordinary capital (Loan 3071/OC-CRA), and a $50 million loan from the People's Bank of China (loan 3072/CH-CR) via the China Co-Financing Fund for Latin America and the Caribbean (CHC).

The $450 million of loan financing authorized by IDB was designed to cover the total project cost.

The IDB approval date for the loan financing was November 13, 2013, and it refers to this project as ‘CR-L1032 : Infrastructure Transport Program (PIT)’.

📋 Loan / Grant Terms

💰 Loan Amountcarries the following borrowing terms: a 24-year maturity

📅 Maturity24 years

The Infrastructure Transport Program (PIT) seeks to repair or pave up to 110 kilometers of the national road network, widen 51 kilometers of roads from two to four lanes, and build or repair 19 bridges and nearly 400 meters of breakwater in ports. These measures are expected to help reduce vehicle operations by 7 percent and travel time by 28 percent.

It is also intended to decrease vehicle operating costs and increased road and port safety.

The PIT is part of the National Transportation Plan 2011-2035 (Plan Nacional de Transporte 2011-2035) to promote the improvement of infrastructures in Costa Rica.

For a full list of other PIT infrastructure projects funded by the IDB ordinary capital loan, see pages 43-44 in Alcance Digital No. 67.

In the framework of this project, all of the funds from the China Co-Financing Fund were specifically to be used for the Limonal-Barranca section of the Inter-American Highway (also referred to as Route 1/Ruta 1), along with 149.16 million USD of the IDB ordinary capital loan.

The Limonal-Barranca section, 49.37 km, is being improved in order to facilitate the flow of trade between Costa Rica and the rest of the countries and regional economic integration.

Work on this section includes adding expanding the road from two to four lanes, the reconstruction of the existing road, the rehabilitation and duplication of the 19 bridges located on the route and the construction of 6 interchanges or overpasses in the main intersections.

It will also add safety elements (such as sidewalks, 14 pedestrian crossings, bicycle lanes, signaling and containment barriers), and environmental works such as slope stabilization and 39 wildlife crossings.

The Ministry of Public Works and Transport (Ministerio de Obras Públicas y Transportes) is responsible for project implementation.

On March 5, 2020, Route 1 Consortium (Consorcio Ruta 1), comprised of contractors Hernán Solís SR and Ingeniería Estrella, were awarded a contract for $182,578,060.79 to work on the Limonal-Barranca section and the La Angostura Route 17 section (reference number IDB-C503378-03/20), and were given a 30 month execution period.

On August 28, 2020, a commencement order was issued for the Limonal-Barranca section. The 30 month execution period implies that the originally expected end date for construction was February 27, 2023.

However, it was reported that the the actual felling of trees for the beginning of the project’s construction activities did not start until September 15, 2020; as of December 2020, only 0.045% physical progress had been made; and as of January 2021, only 8% of necessary land expropriations had been made.

At the end of 2020, $15 million of the CHC loan had been disbursed.

As of October 8, 2020, $170 million (37.78% of the total financing from the IDB ordinary capital and the Co-Financing Fund) had been disbursed.

Then, on April 9, 2021, Ingenieria y Economia del Transporte SMEMP, SA (INECO) was awarded a consulting contract to work on the project.

The contract (reference number IDB-C739801-05/21) lists the China Co-Financing Fund loan and the IDB ordinary capital loan as a source of financing.

📋 Staff Comments

The CHC loan agreement can be accessed in its entirety via http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?param1=NRTC&nValor1=1&nValor2=78365&nValor3=98718&strTipM=TC and https://www.mopt.go.cr/wps/wcm/connect/672207bd-77df-4a68-9fcc-fce51ad7bed0/Ley+9283+PIT+MOPT-BID+13-NOV-14.pdf?MOD=AJPERES. ANDhttps://www.dropbox.com/scl/fi/4xfso5hvofuzjpwu1zyj0/Sistema-Costarricense-de-Informaci-n-Jur-dica.html?rlkey=cugk685bitrib0gwst0buonnw&st=hwilcpiz&dl=02. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
According to the CHC loan contract, the ‘Bank's Cost of Funding’ means a cost margin calculated quarterly relative to a three (3)-month LIBOR Dollar Interest Rate, using the weighted average cost of funding instruments applicable to the Flexible Financing Facility, expressed in terms of an annual percentage, as determined by the Bank. AidData identified this cost margin via https://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=EZSHARE-1436601171-376.
The China Co-Financing Fund for Latin America and the Caribbean was established on January 14, 2013 with a contribution of $2 billion by the People's Bank of China. It is administered by the IDB. For more information, see umbrella Project ID#865265. The IDB lending spread data are drawn from https://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=EZSHARE-1436601171-376.

📚 Sources & References

A un año de inicio de obras en Barranca-Limonal
MOPT tiene 333 expropiaciones pendientes
Alcance Digital No. 67
AMPLIACIÓN DE LA ANGOSTURA Y DE BARRANCA-LIMONAL INICIARÁ EN EL SEGUNDO SEMESTRE DE 2020
Amplicación de vía Barranca-Limonal estará lista en 2 años y medio
Contratación de la Ampliación y Rehabilitación de la Ruta Nacional No. 1
Carretera Interamericana Norte
Sección Barranca – Limonal, y de la Ruta Nacional 17, sección La Angostura
Contrato de Préstamo N° 3071/OC-CR y N° 3072/CH-CR suscritos con el Banco Interamericano de Desarrollo para el financiamiento del Programa de Infraestructura de Transporte (PIT)
Costa Rica to improve its road and port infrastructure with IDB support
Current and Historic Loan Charges for Ordinary Capital Loans
El país de la tramitología: Barranca-Limonal inicia con 92% de expropiaciones pendientes
Financial statement 2016 MOPT - PIT
Financial statement 2017 MOPT - PIT
Financial statement 2018 MOPT - PIT
Financial statement 2020 MOPT - PIT
Financial statement 2022 MOPT - PIT
Financial statement 2023 MOPT - PIT
Gestión del Programa de Infraestructuras de Transportes
Historic Rates and Loan Charges Flexible Financing Facility - USD and Single Currency Facility - LIBOR - USD
Informe de Seguimiento del II Semestre 2020
Inician obras entre Barranca y Limonal
Ministerio de Obras Públicas y Transportes (MOPT) Programa de Infraestructura de Transporte (PIT) Financiado por el Banco Interamericano de Desarrollo (BID)
Obras en Barranca-Limonal son un riesgo para peatones y ciclistas, advierte auditoría
PMR Operational Report - First period Jan-Jun 2014
PMR Operational Report - First period Jan-Jun 2015
PMR Operational Report - First period Jan-Jun 2016
PMR Operational Report - First period Jan-Jun 2017
PMR Operational Report - First period Jan-Jun 2018
PMR Operational Report - First period Jan-Jun 2019
PMR Operational Report - First period Jan-Jun 2021
PMR Operational Report - First period Jan-Jun 2022
PMR Operational Report - First period Jan-Jun 2023
PMR Operational Report - First period Jan-Jun 2024
PMR Operational Report - Second period Jan-Dec 2013
PMR Operational Report - Second period Jan-Dec 2014
PMR Operational Report - Second period Jan-Dec 2015
PMR Operational Report - Second period Jan-Dec 2016
PMR Operational Report - Second period Jan-Dec 2017
PMR Operational Report - Second period Jan-Dec 2018
PMR Operational Report - Second period Jan-Dec 2019
PMR Operational Report - Second period Jan-Dec 2020
PMR Operational Report - Second period Jan-Dec 2021
PMR Operational Report - Second period Jan-Dec 2022
PMR Operational Report - Second period Jan-Dec 2023
PMR Operational Report CR-L1032 First period Jan-Jun 2020
Programa de Infraestructura de Transporte
Programa de Infraestructura de Transporte (PIT)
Project Details CR-L1032 - Documents
PUBLICACIÓN DE LA LÍNEA BASE: REHABILITACIÓN Y AMPLIACIÓN DE LA RUTA NACIONAL N°1
SECCIÓN BARRANCA - LIMONAL
Selección de una Firma Consultora que realice la gestión administrativa, técnica, legal y ambiental del Programa de Infraestructura de Transporte (PIT) Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Costa Rica

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