World Bank Approves
us$72.5 million to
Revitalize Limón
The port city of Limón,
on the Caribbean coast,
will soon get a
revitalization thanks to
a loan for us$72.5
million dollars by the
World Bank. The
revamping is being
called the Port-City
Limón Project.
The loan is one of three
initiatives in the
Caribbean coast being
pushed by Costa Rican
president, Oscar Arias,
according to a Casa
Presidencial press
release.
The Limón project is
expected to pave the way
for the other two
projects that will
expand social programs
in the region and build
a mega-port.
The Arias government has
put aside us$7.5 million
dollars to assist in the
renovation that is in
addition of the World
Bank loan.
According to the World
Bank, the loan is to
invested in urban
centres, providing basic
services to the areas
poorest inhabitants and
help reduce unemployment
and raise income levels.
“With its historic
center and unique
Caribbean identity,
Limon has great
potential for tourism
development but this is
not being realized due
to limitations in its
urban planning and
management capacity,”
said Laura Frigenti,
World Bank Director for
Central America.
"This loan will help the
city of Limon to
diversify its economy
and to develop both
tourism and trade in a
sustainable manner,
while creating a more
livable environment for
the city’s poorest
inhabitants", Frigenti
added.
While Costa Rica as a
whole has an impressive
development record, the
Atlantic region is
lagging behind, with one
in five of its
inhabitants living in
poverty.
The Atlantic port-city
of Limon is one of the
country’s most decayed
cities and suffers from
high unemployment and
crime rates.
The port of Limon, the
busiest port in Central
America after Panama, is
critical to the
competitiveness of Costa
Rica’s trade, but has
become a major
bottleneck to the
country’s growth due to
lack of reform and
inefficiency. The
congestion in the port
affects the city as
heavy freight traffic
has to pass through the
city center to get to
the Limón terminal.
The City-Port of Limón
Project will help to
address these challenges
through support for
actions in four key
areas:
- Urban and cultural
revitalization:
Investments focused on
rescuing Limón’s unique
cultural identity, while
improving the city’s
urban environment
(sewerage, drainage,
paving of streets) and
attractiveness to
visitors.
- Local economic
development: Activities
to generate new sources
of employment and
income, seizing the
opportunities presented
by growing cruise
tourism and the
historical and cultural
richness of Limón.
- Local governance and
city-port strategic
planning: Technical
assistance for the
Municipality of Limon to
improve its capacity to
deliver quality services
and to take an active
role in the city’s
development.
- Support for improving
the port environment:
Actions to improve
transport access to the
Limón and Moín port
terminals and technical
assistance to the
Transport Ministry to
support the concessions
process and transport
system for Moín and
Limón.
“The City-Port of Limón
Project is part of the
Government of Costa
Rica’s regional
development strategy for
the province, which also
aims to address poverty
and social problems,”
said Emmanuel James,
World Bank task manager
for the project. “It has
been designed to help
develop the capacity of
local and central
governments to address
the needs of lagging
regions.”
This US$72.5 million
fixed-spread loan from
the International Bank
for Reconstruction and
Development (IBRD) is
payable in 15 years,
including 5 years of
grace.
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