Message from the Executive Director Robert F. Mujica Jr.
Executive Director
Welcome to our Newsletter. I would like to update you on the Oversight Board’s recent progress on several important issues that will support Puerto Rico’s fiscal stability and economic growth.
The highlight of our work this year has been the amended Plan of Adjustment for PREPA. The plan reduces PREPA’s debt by almost 80%, to the equivalent of $2.5 billion.
We know what is at stake for Puerto Rico. PREPA’s debt restructuring is a crucial element of Puerto Rico’s energy transformation and an essential element of Puerto Rico’s economic development. The transformation includes a path to implement the will of Puerto Rico’s elected leaders to move aggressively to renewable energy.
We also began a broad dialogue about the future of the University of Puerto Rico that I hope will take us to a strategic plan to meet UPR’s challenges.
Below, we provide you with more details about our recent work.
PREPA Plan of Adjustment
After filing the third amended Plan of Adjustment (POA) for PREPA in August, the Oversight Board is moving along on the path to court confirmation of the plan. In September, the Oversight Board filed the Disclosure Statement and the Best Interest Test Report, two documents with important information about the plan and required for confirmation. The 3rd amended plan reduces PREPA’s debt by almost 80%, is supported by creditors who agreed to the realistic terms of the drastically reduced debt and provides creditors with a recovery reflecting their legal standing while limiting the burden on the people of Puerto Rico as much as possible.
Click here for more information on the PREPA Plan of Adjustment.
41st Public Board Meeting
On September 12, the Oversight Board held its 41st Public Board Meeting, where Board Members discussed the Oversight Board’s work since June’s Public Board Meeting. Among the highlights was the amended Plan of Adjustment for PREPA and the discussions being held within the University of Puerto Rico (UPR) Working Group, which was organized by the Oversight Board, the UPR leadership and the UPR Governing Board to identify initiatives that will revitalize the UPR. The UPR Working Group held its 4th and 5th meetings during the month of September.
Click here to view the 41st Public Board meeting in its entirety.
Revitalization Coordinator
In September, the Oversight Board welcomed José R. Pérez-Riera as the new Revitalization Coordinator. Under PROMESA, the Oversight Board submitted candidates to the Governor for appointment as Revitalization Coordinator. Governor Pedro R. Pierluisi Urrutia designated Mr. Pérez-Riera, whose new responsibilities at the Oversight Board since August include the review of infrastructure projects for consideration as “critical projects” entitled to expedited permitting.
Click here to listen to José Pérez-Riera’s remarks at the Oversight Board’s 41st Public Board Meeting.
Renewable Energy Projects
Puerto Rico must start increasing the share of renewable energy as soon as possible. This is crucial for transforming Puerto Rico’s energy sector so that the residents and businesses of Puerto Rico have more reliable, more affordable, and cleaner energy. In March 2022, the Oversight Board conditionally approved 18 renewable power purchase agreements. However, the execution of those agreements was delayed. Seven of those PPOAs have since been withdrawn or were rejected by PREB; 11 were amended to adjust for inflation and other factors. The Oversight Board reviewed the amended agreements diligently and approved them with conditions. We must now make every effort to set these projects operational to provide clean, reliable, low-cost power to customers across the island.
The Oversight Board will continue to do its part to achieve the renewable energy targets set through Act 17. We will do so by ensuring solid contracts based on transparent and competitive bidding. Find more information about the approval of the amended agreements in the statement we issued in September.
Engagement with Stakeholders:
September 8, 2023
Executive Director Robert F. Mujica Jr. meets with representatives from the Chamber of Commerce to discuss initiatives for sustainable economic growth and PR’s path towards a brighter financial future.
September 13, 2023
Oversight Board Members visit the municipalities of Gurabo and Caguas, where they met with the mayors and also the mayors of Juncos and San Lorenzo to discuss economic development and other important issues for each municipality.
September 25, 2023
Board Member Betty Rosa named the top Latino leader in New York.
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