The Ministry of Public Works is putting out to tender works on adapting to three lanes and reversing of lanes in the North and South corridors, in Panama City.
Panama Government Purchase 2017-0-09-0-08-AV-004921:
"The project involves adaptation, adjustments, signaling for reclassification to three-lanes and reversing of lanes on the North and South corridors, which are located in the city of Panama, however, the contracting entity, may determine taskswhile carrying out work in the field which have not been defined in the terms of reference and plans, to ensure connectivity and integrity of road networks and / or accessibility to basic services, such as health centers, schools, roads, production, etc., as long as they relate to a route which is continuous, (or) neighboring, (or) perpendicular to any point on the route of the project, which must be formalized by legal instruments defined in the Request for Proposals."
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.
A new environmental impact study is being carried out and available for citizens interested in finding out about the details of the extension of the Corridor.
Due to the complexity of the expansion project of the South Corridor, the National Environmental Authority has requested a new environmental impact study, rated as category III.
Although in November 2013 the National Highway Company presented an environmental impact study for the south corridor's expansion to six lanes, the National Environmental Authority (ANAM) has requested a new category III study. The new study received in early January shows no major changes compared to the previous one, the components of the project and the total cost of $509 million remain the same.
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 issuance by Empresa Nacional de Autopista (ENA), is due for release in mid-October and the funds will be used to finance the expansion of the Northern Corridor and for a toll system and a surveillance system.
The Northern Corridor extension will be made from Brisas del Golf up to the 24 de Diciembre and the toll system and video surveillance will be installed on these two highways.
The National Highway Company of Panama (ENA) has issued $600 million in ‘ENA Norte’ bonds, backed by cash flows from toll booths, and not guaranteed by the Panamanian Government.
A statement from the Ministry of Economy and Finance reads:
The company Empresa Nacional de Autopistas (ENA) successfully issued $600 million in bonds to international and domestic investors.
The Trust ENA Norte is to issue bonds worth $600 million maturing in 2028, in order to finance the purchase of the Northern Corridor from the Mexican company PYCSA.
From Resolution 118 of the Cabinet Council of Panama:
A favorable outcome was given and authorization approved for Empresa Nacional de Autopista, S.A. (ENA), and ENA Norte, S.A., to undertake with a financial institution or bank authorized to engage in the trust business in Panama, a trust agreement, which is constituted by the Trust Indenture, so that the trustee of the trust may issue bonds of up to the amount of six hundred million dollars, legal currency of the United States of America.
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).
An intricate relationship between the companies who own the raises questions about its purchase by the National Company of Motorways of Panama.
The newspaper La Prensa had access to a note addressed to the Ministry of Economy and Finance, in which Messrs. John, George and Javier Melgarejo Haddad point out that the transaction could suffer because of a lack of "legal effectiveness".
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
The Cabinet Council has approved the National Highway Company, SA (ENA) to sign the contract, trust, and bond and perform all acts necessary to acquire the North Corridor totaling $650 million.
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 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 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.
The National Highway Company (ENA in Spanish) has issued certificates on the stock exchange in order to raise funds for the South Corridor for the company ICA.
Using debt bonds, with one series placed on the international market and another in the local market, the ENA was able to raise $225 million in the local market at a rate of 5.25% and $170 million in the international market at 5.75%.