Costa Rica’s next phase of competitiveness will depend on the quality, reach, and resilience of its digital infrastructure. In 2025, IDB Invest approved up to $100 million in long‑term financing for Liberty Costa Rica to expand 5G Standalone coverage and strengthen high‑speed fixed connectivity. The investment will bring more reliable connections to households and businesses, including in areas where coverage remains limited, supporting data-intensive services and the growth of AI-driven applications.  

Connectivity as Productive Infrastructure

Reliable broadband is essential infrastructure, enabling firms to compete, students to learn, and communities to access services. Costa Rica has made progress but still faces a significant gap in fixed connectivity: estimates indicate the country would need a 66% increase in fixed broadband connections to approach OECD levels.

At the same time, the transition to 5G is critical to meet growing data demand and support emerging applications, such as artificial intelligence (AI), that rely on faster response times and more reliable network performance.

Expected Development Impact: Expanding Access to Markets and Services

This operation positions digital infrastructure as a core enabler of competitiveness, helping expand access to markets, improve productivity, and support the growth of data‑driven industries.  

• Faster, more reliable broadband allows companies to digitize operations, reduce costs, and scale more efficiently.
• Expanding coverage enables households and firms to connect to digital payments, e‑commerce, and public and private services, unlocking new economic participation.
• Investments in 5G and fiber networks will provide the backbone needed for advanced digital applications, from cloud services to AI‑enabled solutions, helping attract investment and support new business models.

IDB Invest’s Financing for Network Expansion  

IDB Invest’s operation provides Liberty Costa Rica with long‑term capital to execute a multi‑year investment program that strengthens both mobile and fixed networks:

• Structure: The financing consists of a $65 million loan plus an additional tranche of up to $35 million, both provided by IDB Invest.
• Mobilization potential: The transaction also includes an uncommitted component that can be mobilized through syndicated loans or the issuance of B‑bonds, enabling participation from institutional investors and helping crowd in private capital for digital infrastructure.

The operation is designed to turn financing into on-the-ground connectivity improvements, including:

1. Payment for the new spectrum granted by the Government of Costa Rica
2. Deployment of Liberty’s 5G standalone network
3. Expansion of Fiber to the Home (FTTH) to improve fixed broadband access and quality
4. Working capital support to accelerate project execution

The IDB Invest Approach: Finance, Mobilization, and Standards

Financing digital infrastructure is most effective when it is paired with capital markets mobilization and strong operational standards. This operation reflects IDB Invest’s commitment to closing the region’s digital gap by catalyzing private investment in networks that improve people’s quality of life and strengthen economic resilience. This reflects IDB Invest’s originate-to-share business model, which seeks to mobilize private capital with development impact in Latin America and the Caribbean.

Focus on Execution

As Costa Rica scales 5G and modernizes fixed broadband, the priority is execution, turning spectrum, network deployment, and fiber expansion into measurable improvements in service quality and access. IDB Invest will continue working with private sector partners to mobilize financing and support connectivity investments that make the digital economy more accessible and competitive.