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Mar 25, 2010

Nationalizes road concessions

In mid-March the Government announced its decision to assume control over two toll-road concessions awarded in the 1990s. The move came after the publication of findings from an audit, following complaints over pricing and reliability. The Government will pay a total of US $700 million to two separate Mexican companies. A new Government agency, the Empresa Nacional de Autopistas, will be set up to adMinister the toll roads. The Government will continue to charge tolls on the roads, proceeds from which will go towards financing public works, including subsidising the planned metro in Panama City.

Type: Treatment and operation (Nationalizations and expropriations)

Industry: Services (Transportation and storage)