Government public consession concession Proyectos y Construcciones (PYCSA) contracts Ingenieros Civiles Asociados (ICA) Mergers & Acquisitions Corredor Norte Empresa Nacional de Autopistas Ricardo Martinelli Corredor Sur purchases stock ICA Panamá Logistics

Panama Buys $700 Million Highway Contracts

The Government purchased the Southern Corridor highway, operated by ICA, and 51% of the Northern Corridor, operated by PYCSA.

Friday, March 26, 2010

$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).

According to an appraisal conducted by the Economy and Finance Ministry, the $420 million paid for the Southern Corridor represent 70% of the highway remaining value, calculated at $600 million.

Source: Presidencia de Panamá

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Key entities

Proyectos y Construcciones (PYCSA) Ingenieros Civiles Asociados (ICA) Ricardo Martinelli

Countries

Panama

Insight

concession public consession contracts Government

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.

Panama to Materialize Highway Purchases

February 2011

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.

Panama Would Buy 100% of “Corredor Norte” Highway

May 2010

Initially, the government had negotiated to purchase 51% of the project, known as “Corredor Norte PYCSA”.

Newspaper Prensa.com explained that in recent talks, President Martinelli and the Mexican owners of the project would have agreed to transfer the entirety of the highway to the Government.

Panama Will Renegotiate Pycsa’s and ICA’s Contracts

March 2010

The government will renegotiate two highway construction contracts from the 1990s, one with ICA and another with PYCSA.

The announcement was made by Economy Ministry Alberto Vallarino after an audit process revealed that both projects are too costly to be profitable. Both contracts include financial discount rates that make it impossible to recoup the initial investment.