Within the context of the Resilience and Sustainability Service (SRS) agreement approved by the International Monetary Fund (IMF)´s Executive Board in November 2022, the Government of Costa Rica announced the creation of a Public-Private Partnership (PPP) Project Preparation Fund (PPF) with a potential to catalyze up to 1.2 billion dollars in private sector resources for projects in sustainable public infrastructure sectors such as sustainable transport and energy, water and sanitation, and social infrastructure by 2030.

The Inter-American Development Bank (IDB) will coordinate the establishment of the PPF that would become a multi-donor facility with the participation of other stakeholders. The PPF will provide financial support, on a contingent recovery basis, that will help build capacity and technical expertise in Costa Rica to achieve the Sustainable Development Goals (SDGs). It will have four areas of intervention: i) initial support (requires PPP regulatory and institutional reforms, as well as the development of technical capacities); ii) identification and prioritization of sustainable projects; iii) sustainable project structuring (including possible support for risk reduction that strengthens project financeability); and iv) support for the private sector.

In addition, the European Investment Bank (EIB) announced the creation of a regional financing facility that will support projects related to sustainability in the areas of energy, transport, water and sanitation, and environmental conservation, among others.

The World Bank also agreed to provide technical assistance to the state energy company “El Instituto Costarricense de Electricidad” for a potential green bond issuance, and to provide 60-million dollars financing to Costa Rica to reduce emissions. derived from deforestation and forest degradation (REDD+).

The International Finance Corporation (IFC) of the World Bank Group will also contribute to climate resilience in Costa Rica through multifaceted initiatives to support the private sector that include the development of a green taxonomy, and the design and implementation of financing solutions to help transform the agro-industrial sector.

Lastly, Costa Rica, together with the UNDP, is developing a sovereign thematic bond strategy linked to its SDGs and Nationally Determined Contribution (NDC), which will allow it to catalyze more financing from private investors, through the issuance of use of proceeds bonds or sustainability-linked bonds.