Got water? It’s a serious question.
We often take it for granted that we will have water coming out of our taps – and that it is safe to drink. Water is essential to life, and an adequate, safe, and accessible water supply must be available to all. Improving access to safe drinking water results in benefits to the public’s health by preventing illnesses, and improving our quality of life.
Every effort should be made to ensure that Puerto Rico’s drinking water is as safe as possible. This is why the Financial Oversight and Management Board continues to support the Puerto Rico Aqueduct and Sewer Authority (PRASA) in this endeavor.
Recently, the Oversight Board approved two transactions for PRASA to borrow more than $65.8 million from the federal Drinking Water State Revolving Fund (DWSRF) Program to finance substantial repairs, improvements, and new construction in water treatment plants. The funds will also be used to replace any lead pipes that PRASA may identify in its system.
The two debt transactions align with PRASA’s 2025 Fiscal Plan, newly certified by the Oversight Board, as they would help fund 29 capital projects addressing PRASA’s water intake, treatment plants, and related infrastructure projects, crucial for ensuring the provision of safe water services, with funds provided through a federal program. The projects will also help PRASA comply with important federal Environmental Protection Agency standards on providing safe drinking water to the people of Puerto Rico.
“By facilitating cost-effective capital investments, the agreement mitigates PRASA’s need to use operating revenues to meet capital investment targets and reflects a commitment to securing necessary funding while ensuring financial sustainability for PRASA’s infrastructure projects,” said Oversight Board Executive Director Robert F. Mujica, Jr.
This means that the two transactions will mitigate PRASA’s need to use its own funds for these projects, while helping to comply with local and federal regulations on delivering safe drinking water to the people of Puerto Rico. This is in accordance with PRASA’s Fiscal Plan.
As part of these transactions, $28.35 million have been earmarked for PRASA to make an islandwide inventory and replace any identified lead pipes in its drinking water system.
Another $4.1 million is earmarked to control the presence of the chemical manganese at water treatment plants in Aibonito, Cidra, and Isabela, and $3.5 million is set aside to control PFAS synthetic chemicals, also known as “forever chemicals,” at the water treatment plant in Gurabo.
Meanwhile, $5 million has been earmarked to complete the construction of a new water treatment plant in Juncos. Although substantial progress has been made, including the completion of most concrete structures, critical components such as installing the treatment systems, equipment, instrumentation, and electrical infrastructure, as well as constructing the access roads, remain unfinished.
To improve the water distribution system in Ponce’s urban area, $4 million is set aside to install new pipelines along Hostos Avenue and new fire hydrants in the nearby area. Another $2 million is earmarked to install new pipelines in the Playa de Ponce area along the coast.
PRASA’s 2025 Fiscal Plan highlights the water utility’s efforts to use federal grants and low-interest loans for various projects, which incorporates over $7 billion in grants and low-interest loans awarded to PRASA by multiple federal partners. These federal grants and programs, along with disaster-recovery funds, “are collectively expected to provide the necessary financial support to improve, rebuild, recover, and upgrade critical water and wastewater facilities. PRASA has now a unique opportunity to invest in its infrastructure at a much lower cost,” states the public utility’s 2025 Fiscal Plan.
Maximizing federal funding opportunities to allow for low or no-cost financing is just one key area of opportunity for PRASA. As outlined in the 2025 Fiscal Plan for PRASA, the Oversight Board is working with PRASA on other opportunities to continue improving its revenues and fiscal stability, investing in a new water metering system, mitigating physical water losses, and carrying out infrastructure projects to maintain and upgrade the water system, among others.
PRASA currently has about 500 infrastructure projects around the Island in various stages of development. Projects include improvements to the water distribution system, water treatment plants, and wastewater treatment plants, as well as dredging Carraízo Dam. All of these projects will improve water and wastewater services to the people and businesses of Puerto Rico.
To read PRASA’s 2025 Fiscal Plan, click here.
Importance of Safe Drinking Water
Safe drinking water is crucial for several reasons. First, it is essential for human health, as it supports our bodily functions, physical activities, and cognitive functions in the brain, such as thinking, language use, and learning. Second, safe drinking water prevents waterborne diseases such as cholera and dysentery. Access to safe water is vital for preventing these illnesses and maintaining our overall health.
Third, safe drinking water is important for environmental sustainability. Protecting water sources from pollution ensures that communities have access to clean water, which is essential for both human and ecosystem health.
Finally, safe drinking water contributes to economic development. Communities that have reliable access to clean water can reduce healthcare costs, enhance productivity, and improve the quality of life.
Overall, safe drinking water is a fundamental human need and a critical factor in promoting health, well-being, and sustainable development.
The Oversight Board is committed to helping PRASA provide reliable, affordable, and safe drinking water for the people of Puerto Rico.
