Panama to Buy Northern Highway for $650 million

The purchase of the highway from the Mexican company Pycsa comes after the $420 million acquisition of the Southern Highway.

Friday, March 2, 2012

The government will buy the Northern Highway (Corredor Norte) for $650 million, given in concession to Mexican company Proyectos y Construcciones (Pycsa).

It is estimated that the state will put up a part of the money and then place government bonds to cover rest of the amount, reported Sin embargo.mx. That was the method used to purchase the Sourthern Highway (Corredor Sur) in Panama City for $420 million from another Mexican company, Ingenieros Civiles Asociados (ICA).

On Thursday the National Economic Council gave approval for the Panamanian state to sign the necessary documents with the National Highway Company for the purchase of the Northern Highway.

More on this topic

Panama: Sale of Corredor Sur Signed for $420 million

August 2011

The government has signed a contract for the acquisition of 100% of the shares of the road called ‘Corredor Sur’ from the company ICA.

The transaction was made between the State National Highway Company (ENA) and Ingenieros Civiles y Asociados (ICA), and consists of $25 million in equity and issuing $395 million in bond debt.

Purchase of Northern Highway Confirmed

April 2012

The Cabinet Council of Panama has authorized the acquisition of the Northern Corridor Highway from the Mexican company Pycsa, for a total of $650 million.

A statement from the Presidency of Panama reads:

Cabinet authorizes ENA to sign purchase agreement for Northern Highway

$220 million Profit on Sale of Highway

August 2011

The Mexican company ICA made a net profit of about $220 million after the concession for the Southern Corridor reverted to the Panamanian government.

A press release by the company dated August 1, 2011 stated that “Today, ICA and the company owned by the Government of Panama, the National Highway Company, SA (ENA) signed an agreement for the sale of shares held by ICA Panamá, for the ‘Corredor Sur’ concession.

Northern Corridor Finally Purchased

June 2012

It has been announced that the purchase of the highway from the Mexican company PYCSA by the Panamanian State will be completed in July and funded by issuing bonds.

Negotiations for the purchase of the Northern Corridor from PYCSA should conclude in July with payment of 80% of the shares, said Rigoberto Effio, administrative and financial manager of the Empresa Nacional de Autopistas (ENA).

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