The 6% rate paid on the ten year term issuance is higher than that offered in issuances that were made to finance the purchase of the North and South corridors.
The National Highway Company has turned to the stock market in order to fund the expansion of the northern corridor road, having succeeded in raising funds for the northern and southern sections.
The Panamanian Association of Business Executives has joined other unions in criticizing the direct extension of the contract with Mexico's ICA.
Fernando Aramburu, president of the Panamanian Association of Business Executives (APEDA) regrets that the contract signed by the Government with the company Ingenieros Civiles y Asociados Asociados (ICA) does not give more options to the National Highway Company (ENA).
The Panamanian Cabinet Council has authorized the signing of a loan agreement between the National Bank of Panama and the National Highway Company for $52.9 million.
A press release from the Presidency of Panama reads:
Cabinet authorizes loan agreement to extend the Northern Corridor
The Cabinet Council approved a decree authorizing the signing of a loan agreement between the National Bank of Panama, as Trustee of the Trust Fund for Development and the National Highway Company (ENA) in the amount up to $ 52,965,244.80 which will be used to pay a deposit on the total investment required for the expansion of the Northern Corridor in the slum section of Brisas del Golf until December 24 .
The $114.8 million contract includes the study, design, procurement and construction of Phase II of the Northern Corridor.
The works to complete the extension of the road to four lanes must be carried out in 24 months.
"In a report sent to the Mexican Stock Exchange, the developer explained that the contract provides for the study, design, procurement and construction of Phase II of the Northern Corridor, which includes an 10.3 km extension of the four-lane highway, from the Brisas del Bolf section of the street TO 24 de Deciembre", reported Milenio.com
The state has approved the extension of the South Corridor and granted rights for the seabed to be filled in up to 40 hectares, so as to provide a source of funding for the extension.
The new landfill will be extended between the former Marcos A. Airport Gelabert (now Punta Pacifica) and the Convention Center Atlapa.
"The commercialisation of 40 acres of landfill, - the extension would be almost double the size of Punta Pacifica -,will finance the expansion of the South Coridor to six lanes for its entire length and to extend the Northern Corridor to December 24. However The Government has not yet decided how to exploit these rights to fill the seabed." from an article in Prensa.com
The company Ingenieros Civiles Asociados (ICA) has been given contracts to widen both the South and North Corridors.
The works comprise the widening of the South Corridor to six lanes and the extension of the North Corridor, until 24 December.
"In the case of the South Corridor, ICA Construction has an existing contract with ICA Panama, the highway concession holder, to carry out the work, which the government has decided to respect," reports Prensa.com. "With the North Corridor Pycsa, the highway's current owner, will grant ICA rights to undertake the extension".