Financial Board Says Prepa’s Fiscal Plan does not promote ‘aggressive transformation’
SAN JUAN – The Puerto Rico Financial Oversight and Management Board said Monday the Puerto Rico Electric Power Authority (Prepa) needs a “more aggressive transformation” than what is contained in its fiscal plan and seek more concessions from creditors in renegotiations of the restructuring support agreement (RSA).
“The board approves the efforts of the government to improve the terms [of the RSA],” board member Carlos García said during a press conference after the board met to approve the central government’s fiscal plan.
The board received fiscal plans from Prepa, the Aqueduct and Sewer Authority, Cooperatives Supervision & Insurance Corp. (Cossec by its Spanish acronym), the Government Development Bank, and the Highway and Transportation Authority last month but did not reveal opinions on these because they were still being evaluated.
The central government’s fiscal plan, which was certified Monday, suggests a possible end to Prepa’s monopoly, allowing for private competition. It calls to “leverage and facilitate expedited private sector investments in modern, cost efficient, and environmentally compliant energy infrastructure; reform Prepa operations and services to clients; and allow for greater competition in energy generation.”
Asked about changes to Prepa’s fiscal plan, García merely said the board will be deciding on initiatives to transform the utility to obtain the lowest cost of electricity.
The board had said that once there is a final fiscal plan, the plans of the public corporations will be made public.