The purchase of the highway from the Mexican company Pycsa comes after the $420 million acquisition of the Southern Highway.
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.
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.
Between April and May, the Government will purchase the North and South highways for $ 1,070 million.
The likely dates for the transaction would be April 10 or May 25, added the Minister of Economy and Finance, Alberto Vallarino.
"One of the reasons for the postponement of the purchase, especially of the South Highway Corridor, in concession to Ingenieros Civiles Asociados (ICA), is because the firm has commitments to bondholders," reported Milenio.com.
The Government purchased the Southern Corridor highway, operated by ICA, and 51% of the Northern Corridor, operated by PYCSA.
$420 million were spent to purchase the South Corridor from Mexican corporation Ingeniero Civiles & Asociados (ICA), and $280 million were paid for 51% of the North Corridor, owned by Proyectos y Construcciones S.A. (PYCSA).