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A reported blog on happenings around Latin America.

China announces largest investment yet in Costa Rica

China will pay nearly $1 billion to modernize an oil refinery.
China costa rica stadium 2011 06 25Enlarge
The new Costa Rican National Stadium on March 26, 2011. Six hundred Chinese engineers and workers took part in the construction of the stadium. (Yuri Cortez/AFP/Getty Images)

China announced its largest investment to date in Costa Rica this week, agreeing to pay between $800 million and $900 million to modernize an oil refinery in the Caribbean port of Moin.

The refinery currently processes 25,000 barrels of oil a day, reports the Tico Times. The project, financed by China's development bank, is expected to expand the capacity to 60,000 barrels.

The project is expected to be completed in 2013.

In June, China and Costa Rica signed a free trade agreement that benefitted about 70 percent of Costa Rica's exports.

The deal represented China’s closest such trade pact to the U.S. border, having inked agreements with Latin American countries Peru and Chile.

Read more on the growing friendship between China and Costa Rica.

Follow Stephanie on Twitter: @stephaniegarlow