Wednesday 14 October 2009
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COSTA RICA
 

Arias Cautious About Granting TREM Concession

The Gran Area Metropolitana (GAM) - greater San José area - needs the electric train, said president oscar Arias, but who has reservations of handing over such an important project to the hands of the private sector.

The comments by president Arias follows the initiative by the Ministerio de Obras Públicas y Transportes (MOPT) to bring train service to San José to reduce traffic congestion and contamination.

The cost of the project is estimated at us$440 million dollars, of which the government would fund us$100 million dollars and the rest by way of a 35 year concession to a private operator.

The TREM (tren eléctrico metropolitano) woudl connect Heredia, San José and Montes de Oca (San Pedro).

Arias is on the side of cuation especially on the face of the lack of sufficient railway consultants in the country. Arias said he spoke to one of the engineers, a Brazilian, involved in the feasibility study for the project and asked how many engineers were involved. The answer was something like 500, however, in Costa Rica there are only four or five, the president commented.

"I cannot make a decision on the future of the country where we have to bring us$100 million to the table without a lot of consultation", said Arias.

Oscar's brother, the ministro de la Presidencia, Rodrigo Arias, supported the comments of the president.

For her part, the ministra de Obras Públicas y Transportes, Karla González, said that she will continue forward with her plans of concessions even though the president has his reservations.

González said that there 11 companies interested in the project.

"I have no doubt of the future of the TREM, which is fundamental to solve the transit problems in the coming years", said González.

González added that if the president (Arias) is able to obtain the support of the state banks to finance the project, she would rule out the concessions plan.

Involved in the state financing of the project would be the Banco Nacional, Banco de Costa Rica and the Banco Popular, which will be meeting next week with government officials to discuss the plan.

Ministra González added that, during the talks, the government will also seek support to expand the train service to other areas, including freight service.

In total, the state banks will be asked to put up us$500 million dollars, according to González.

 
 














 
 

 

 


 
 
 
 

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