Oversight Board Took Another Step Towards Ending PREPA’s Bankruptcy by Filing its Fifth Amended Plan of Adjustment
The Oversight Board filed the Fifth Amended Plan of Adjustment (POA) which reduces more than $10 billion of total claims by creditors against the Puerto Rico Electric Power Authority (PREPA), reflecting the projections and findings of the new PREPA Fiscal Plan that was certified by the Oversight Board in February 2025.
The POA would reduce PREPA’s debt by almost 80%, to the equivalent of $2.6 billion in cash or bonds, excluding pension liabilities. The POA incorporates several amendments to the previous structure, including a rate reduction fund to support PREPA’s pensions, and the elimination of the legacy charge to repay the significantly reduced debt.
The plan honors the settlements previously reached with creditors holding approximately 44% of PREPA’s debt. The Oversight Board continues to mediate with creditors and will be working with the Government to identify the source of funds to support the potential cash or bond recovery for creditors proposed in the POA.
Read the amended PREPA POA here.
Fiscal Year 2026 Budget Process Underway
The Oversight Board is working with the administration of Governor Jenniffer González Colón on the development of the Puerto Rico Government budget, including that of the University of Puerto Rico (UPR), the Municipal Revenue Collection Center (CRIM), Highways & Transportation Authority (HTA), and the Puerto Rico Aqueduct & Sewer Authority (PRASA), among other public entities. The new fiscal year begins on July 1, 2025.
Public hearings in the Legislature, discussing the budgets of government agencies, began this month.
On or before June 30, 2025, the Oversight Board expects to certify the budget for Puerto Rico’s Government for fiscal year 2026, according to PROMESA Section 202(e).
At the same time, the Oversight Board is also coordinating with the leadership of government instrumentalities to develop their respective fiscal plans, which are scheduled to be certified by the end of May.
Oversight Board Outlines $350 Million to Support Municipalities
Understanding the challenges municipalities face in providing services to their residents, the Oversight Board has approved $350 million in funds to support various initiatives in fiscal year 2025. The $350 million earmarked for municipalities in the Puerto Rico Government budget includes:
- $77 million in Health Insurance Administration (ASES) healthcare relief to municipalities
- $61.5 million for waste and recycling programs
- $49.5 million to help fund reconstruction projects related to Hurricane Fiona
- $15 million for social well-being “ama de llaves” services
- $9 million in funding for additional paramedics for a new third medical emergencies shift.
Find here the entire list of programs supported by the $350 million approved for municipalities.
Salary Adjustments Approved for 30 Government Job Classifications
The Oversight Board approved the revision of 30 job classifications in the central government, resulting in salary increases for 71% of these employees.
Among the government employees who received salary increases are firefighters, paramedics, 9-1-1 telephone dispatch supervisors, and fraud investigators.
In total, 448 out of 667 job classifications received salary increases, with an annual fiscal impact of more than $2.3 million, including fringe benefits.
Some of the salary adjustments are retroactive.
Read more here.
In the news:
March 26, 2025
Oversight Board Executive Director Robert F. Mujica, Jr. met with Governor Jenniffer González Colón at Fortaleza to discuss funding pensions at the bankrupt Puerto Rico Electric Power Authority (PREPA). An agreement was reached to fund PREPA pensions in the short term, with the government asking the Oversight Board to reprogram $25 million in Government funds to pay these pensions in April. The Oversight Board and González’s administration are committed to finding a long-term solution.
Listen to Mujica and González speak about the topic in this press conference which Noticel aired live after the meeting.
March 18, 2025
The Civil Service Reform in the Puerto Rico Government, an Oversight Board led initiative, is halfway complete, said Deputy Executive Director Arnaldo Cruz in an interview with El Nuevo Día. Cruz explained that the Oversight Board has discussions pending with the new administration on new salary scales for government employees.
During the interview Cruz also talked about the Puerto Rico Government’s Enterprise Resource Planning (ERP) which focuses on integrating its financial, human resources, and contracting systems into one platform. The details were included in a second article published by El Nuevo Dia.
Oversight Board Executive Director Robert F. Mujica, Jr. discussed Puerto Rico’s future during a podcast with Carlos Mercader. As part of the conversation Mujica talks about the Oversight Board’s work, debt restructuring, fiscal management, and lessons learned from Hurricane Maria.
Watch the podcast here.
Stakeholder engagement:
March 14, 2025
The Oversight Board’s Senior Infrastructure Manager, Fausto J. Hernández spoke during the Puerto Rico Energy Week 2025 conference, where he highlighted the urgent need to accelerate energy projects to create a more reliable energy grid for the Island’s residents and businesses. Hernández emphasized that challenges remain, and collaboration is essential, as this is the only way to remove roadblocks and advance projects for the benefit of Puerto Rico’s energy infrastructure and its people.
March 7, 2025
During the 35th annual meeting of the Pharmaceutical Industry Association, Oversight Board Executive Director Robert F. Mujica, Jr. discussed the current state of the healthcare workforce in Puerto Rico, and the findings on a healthcare workforce study by FTI Consulting, which was commissioned by the Oversight Board.
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