12.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.0
Equity

* These investment figures are indicative

The overall expected development impact of this engagement is the following: Project Level Outcomes i) Improve quality and access to urban infrastructure services. These investments are part of the MSJ's revitalization master plan which is oriented to stop urban sprawl in its downtown area, increase the city center density, and improve the overall city's resilience to shocks derived from economic downturn and climate change. The plan delivers impact to the 340 thousand inhabitants of MSJ's metropolitan area and the approximately 2 million people living in the city's periphery. The project will enable better delivery of public services (public transportation and mobility alternatives, connectivity and sewerage). The project will contribute to access to new jobs, business and urban services as the rehabilitation of urban corridors is intended to act as a cluster of economic development. The current inhabitants of the project's catchment area are the main beneficiaries of the improved quality of the services. ii) Increase municipal government tax revenue base and collection levels. The project is expected to improve the municipality fiscal sustainability by attracting new permanent inhabitants (increasing tax base) and increasing tax revenue collections from (i) property value around the revitalized corridors; and (ii) licenses and fees related to real-estate commercial and housing development. Market Creation Outcomes i) Increased access to capital markets. The project is the first financing transaction outside the local market and will contribute to demonstrate the viability of municipal infrastructure financing to international investors allowing the municipality to tap into new sources and more flexible instruments. MSJ can be an example of how middle and small size cities can improve financial resilience diversifying funding sources and reduce reliance on inadequate local financing, international bond markets and central government transfers.

Financing beyond what is available in the market. IFC will provide long-term financing in local currency for the proposed transaction, that will help the city diversify its funding sources. IFC's financing represents the first international multilateral financing operation for the city. Knowledge, innovation and capacity building: IFC is providing comprehensive multisectoral support to the implementation of San Jose's master plan for urban revitalization. IFC's will support its strategic priorities in green buildings, urban mobility, and institutional capacity, not only through financing but also technical assistance through our advisory services.

According to IFC’s Policy on Environmental and Social Sustainability this is a Category B project. E&S impacts and risks are expected to be limited, generally site-specific, and readily addressed through standard mitigation measures. Key E&S impacts and risks are those typically associated with the construction phase of urban infrastructure improvements and minor rainwater drainage solutions. These include localized temporary interruptions to power and water services, traffic disruptions, increased noise and dust, occupational health and safety (OHS), contractor management, community safety, and waste management. Key positive E&S impacts include improved public safety and reduced vulnerability to floods. 

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.