Monday, June 18, 2018

Puerto Rico gov’t to fund power utility with other agencies’ money

By on March 23, 2018

SAN JUAN – The government is taking money from financially troubled entities such as the Education and Health departments to finance a $300 million loan to the bankrupt Puerto Rico Electric Power Authority (Prepa).

According to the most recent report of the government’s main Treasury Single Account (TSA), some $80 million for that loan will come from the Department of Health and about $41 million from the Department of Education, an agency that is reducing payroll and closing schools.

Judge Swain approves a $300M loan to Puerto Rico power utility

U.S. District Judge Laura Taylor Swain, who oversees the island’s bankruptcy process under Title III of Promesa, recently authorized the commonwealth to loan the power utility $300 million after the public corporation warned that a liquidity shortage would force it to leave Puerto Rico in the dark.

According to the TSA breakdown, the Treasury Department will provide $49 million for the loan. The Police Department, which has problems paying owed overtime, will put $13 million. Some $550,000 will come from the Highways & Transporation Authority, a public corporation that is also in under Promesa’s Title III process.

The following is a breakdown of which entities will finance the Prepa loan:

–Department of Health: $80 million
–Treasury Department: $49 million
–Department of Education: $41 million
–Administration for Integral Development of Childhood: $ 22 million
–Public-Private Partnerships Authority: $19 million
–Medical Center Services Corp.: $16 million
Mental Health & Antiaddiction Services Administration: $16 million
–Police Department: $13.7 million
Transportation & Public Works Department: $13.7 million
–Agricultural Enterprise Development Administration: $13.7 million
–Corrections Department: $8 million
–Department of Justice: $2 million
–Fire Department: $1.6 million
–HTA: $550,000

Governor puts Puerto Rico power company’s retirement board under receivership

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