Mexican construction company ICA (BMV, NYSE: ICA) expects to finalize the sale of its Corredor Sur tollroad to the Panamanian government in 1Q11, according to CFO Alonso Quintana.
"We expect the process to continue for another three to four months," Quintana said in a conference call.
Progress on the sale, which began around six months ago, has been slow; however, the government has made significant process such as creating a new concessions company to carry out the purchase, Quintana added.
Once the sale is complete, the 21km tollroad will be managed and operated by a new public-private firm: Empresa Nacional de Autopistas (ENA). A bill to create to the new authority is pending approval by congress.
The Panamanian government will invest US$475mn to buy the Corredor Norte and Sur tollroads, which are the main access roads to Panama City. Another US$285mn will be spent to expand the Corredor Sur to six lanes and complete the stretch linking Corredor Norte to Tocumen international airport.
ICA, Mexico's largest construction firm, was awarded the 30-year concession of the Corredor Sur tollroad in 1999. The Corredor Norte tollroad is currently operated by PYCSA, which was awarded a concession in 1997.