Panama’s government will buy the Corredor Sur and part of the Corredor Norte tollroads, the presidential website reported.

The tollroads are the main exit and entrance routes to Panama City.

The Corredor Sur tollroad, currently operated by Mexican firm ICA, will be bought at a cost of US$420mn, which is 70% of the highway’s estimated total return, according to an audit recently carried out by the country’s economy ministry (MEF).

In addition, the government has decided to buy 51% of Corredor Norte shares for US$280mn. The tollroad is currently operated by Mexican firm.

Corredor Norte’s total return is estimated at U$1bn, according to the MEF audit.

Authorities are buying the Corredor Norte because construction work under the current concessionaire is behind schedule.

PYCSA was awarded the 30-year concession to operate the Corredor Norte in 1997.

The 30-year concession of Corredor Sur was awarded to ICA in 1999.

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