Friday, December 14, 2018

Companies begin to vie for Puerto Rico utility grid’s concession  

By on December 6, 2018

SAN JUAN – Gov. Ricardo Rosselló announced Thursday that the Public-Private Partnerships Authority (P3A) has received documents from five private proponents interested in managing and operating the Puerto Rico Electric Power Authority’s (Prepa) transmission and distribution system in a public-private partnership.

The P3A will evaluate the responses to its request for qualifications and identify which companies meet the minimum requirements “to carry out the transformation and modernization of the energy system of Puerto Rico,” according to the governor’s office press release.

“We promised to end the useless monopoly of PREPA that held our people and our economy hostage. The process of energy transformation that we are implementing requires investment of funds and resources that PREPA does not have. The process of energy transformation that we are implementing requires the investment of funds and resources that PREPA does not have,” the governor said. “The goal is to have a world-class system that is resilient and efficient. Today, the private and specialized sector shows that they trust what we are doing and that they are willing to invest on the Island.”

Once the companies that “prequalified” are identified, a comment period for each of their proposals will be established.

“Our administration remains firm in its commitment to provide greater stability, reliability, and efficiency to the energy system of Puerto Rico. Today we take another step forward in the route to the transformation of our energy system,” Rosselló said.

The proponents submitted their qualifications before the deadline, which expired, Wednesday, and include regulated, world-class energy companies.”

With “the purpose of continuing to promote this project successfully, the executive director of the P3A, Omar J. Marrero; the executive director of the Fiscal Agency and Financial Advisory Authority of Puerto Rico (AAFAF), Christian Sobrino Vega; and the Puerto Rico Energy Bureau (PREB) signed a collaboration agreement, whose purpose is to facilitate the implementation of public energy policy.

“Specifically, what is sought is to facilitate transactions for the sale, disposal or transfer of the assets, operations, functions and services of PREPA through the [P3] mechanism.

“Said collaboration agreement was granted in compliance with Act No. 120-2018, which provides the legal framework for the privatization of PREPA.

“This interagency agreement contains the terms and conditions that will allow the P3A to share information and important documents related to such PREPA transactions with the PREB; and will allow the Bureau to provide technical, expert, financial and human resource assistance to the P3A,” the release reads.

“We signed this collaboration agreement, in compliance with the responsibilities assigned to our agencies, to be able to exchange confidential information and ensure that communication flows in an agile and transparent manner, and that transactions are consummated effectively,” Sobrino Vega said.

“At the P3 Authority we have the legal framework and the experience to carry out complex transactions and, on the other hand, our PREB colleagues have technical expertise in energy. Therefore, we understand that, by combining these skills, we will be able to work more effectively,” Marrero added.

For more information on public-private partnership projects, visit http://www.p3.pr.gov.

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