Climate Resilient Recovery and Territorial Development Project

About the project

Using reconstruction as an entry point, this project aims to operationalize Costa Rica’s commitment towards comprehensive and inclusive disaster risk management and climate change adaptation through resilient infrastructure and services. The project takes a territorial approach to disaster recovery, climate, and multi-hazard resilience through the combination of structural and non-structural measures that can be applied to both reconstruction and prospective resilience-building investments and activities. The project design also considers spatial inequalities and exclusion of vulnerable groups including ethno-racial minorities, the extreme poor, refugees, asylum seekers, and migrants in vulnerable conditions.

Project Development Objective (PDO)

To increase access to disaster and climate resilient infrastructure and services in selected regions of the Republic of Costa Rica.

Project Implementation Status
Project negotiations with the Government of Costa Rica took place on February 16 and 17, 2023. The project was approved by the World Bank Board of Directors on March 8, 2024, and signed by the Borrower on August 16, 2024. The Financing Agreement was submitted to the Legislative Assembly on January 6, 2025, by the Ministry of Presidency. The delay in project approval and effectiveness is not related to the project but was mainly due to political dynamics and competing priorities on the Government and Congressional agenda. On December 17, 2025, the Costa Rican Ministry of Finance requested a six-month extension to the project’s effectiveness deadline, aimed to enable the approval of the Financing Agreement by the Legislative Assembly. This was the third time that the Borrower requested an extension of the Effectiveness Deadline; requiring approval from the World Bank´s Regional Vice President (RVP).

Costa Rica held presidential and legislative elections on February 1, 2026. The incumbent administration won both branches of government, ensuring continuity in government priorities and a simple majority capable of advancing legislation in the National Assembly. On February 3, 2026, the Finance Commission of the Legislative Assembly approved the project. The completion of this first step in the legislative approval process had been stalled since January 6, 2025 (when the project was first submitted to the Legislative Assembly) and allows the legislative approval process to advance.

The project remains highly relevant for Costa Rica and a top priority for national authorities. The CNE has been actively advocating for the project’s approval in the Assembly, providing presentations and clarifications as needed. The CNE team continues to ensure readiness for implementation, with full ownership of the project. Refugee integration and management remain a top priority for the country. The Borrower has been advancing with the preparation towards implementation by completing the Project Operations Manual, defining the PIU organizational structure together with the general profiles for key staff.

Key Dates:
• World Bank Board Approval: March 8, 2024.
• Project Signing Date: August 16, 2024.
• Submission to Legislative Assembly: January 6, 2025.
• Original Effectiveness Date: February 12, 2025.
• First extension of Effectiveness Date to: August 31, 2025.
• Second extension of Effectiveness Date to: January 30, 2026
• Proposed third extension of Effectiveness Date to: July 30, 2026.
• Project Closing Date: October 30, 2029.

Relevant Documents:

• Program Information Document (PID)
• World Bank Project Information Page