The Puerto Rico Public-Private Partnerships Authority announces the upcoming publication of the Desirability and Convenience Study for the monetization of Puerto Rico Highways and Transportation Authority ’s (PRHTA) Toll Roads
San Juan, Puerto Rico. March 14, 2022 — The Executive Director of the Puerto Rico Public-Private Partnerships Authority (“P3A”), Fermín Fontanés, announced today that the Desirability and Convenience Study (the “Study”) for the improvement, financing, operation, and maintenance of the Puerto Rico Highways and Transportation Authority’s (“PRHTA”) Toll Roads PR-20, PR-52, PR-53, and PR-66 (“Toll Roads”), under a future public-private partnership (“P3”) agreement between the PRHTA and a private operator (the “Project”) is scheduled to be published in the upcoming weeks.
The Study is being prepared pursuant to the requirements of Article 7 of the Puerto Rico Public Private Partnership Act, Act No. 29-2009, as amended (“Act 29”) and Section 5 of the Regulation for the Procurement, Evaluation, Selection, Negotiation and Award of Participatory Public-Private Partnership Contracts Under Act No. 29-2009, as amended (“Regulation”). The Study was commissioned by the P3A to assist in determining whether it is desirable and convenient for the Commonwealth to procure a long-term concession contract with a private operator to invest, finance, operate, and maintain the Toll Roads. This Study will detail the qualitative and quantitative needs for delivering the Project, evaluate potential structuring options, and assess and compare their financial, commercial, and technical risk implications.
“Public-private partnerships are a proven, effective model for the transformation of infrastructure and public services, as well as for economic development. Puerto Rico has been generating unique infrastructure investment opportunities in recent years, and has received a strong, positive market response. We are avid to continue promoting Puerto Rico’s robust legal framework with regards to the public-private partnerships mechanism”, said Fontanés.
The Project is listed as one of the Priority Projects of the Government of Puerto Rico; an initiative developed by the Government itself to further economic development and improve the Island’s infrastructure through the execution of high-impact projects. In addition, the PRHTA’s February 22, 2022 Certified Fiscal Plan highlights the need for PRHTA to address underperformance in the operation and maintenance of the Toll Roads, which has resulted in suboptimal road conditions, lack of sustainability, increased congestion, and safety concerns. To address the aforementioned, this Project aims to (1) improve budget certainty and address PRHTA’s fiscal situation through leveraging up-front funding sources and minimizing public fund contributions; (2) modernize the existing infrastructure and improve the quality of the Toll Roads; (3) improve mobility, accessibility, and safety for users of the Toll Roads; (4) improve performance and accountability by allocating responsibilities to the party best able to manage them and integrating performance-based contracts; (5) increase revenue opportunities through reduced leakage, optimizing fare collection, and better aligning toll rates to costs; (6) accelerate improvements in the Toll Roads and limit risks in the delivery of improvements; and (7) reduce exposure to current fiscal situation in Puerto Rico.
For further information regarding the publication of the Study and/or the Puerto Rico Public-Private Partnerships Authority, interested parties are encouraged to access P3A’s website: www.p3.pr.gov.
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Media Contact: Claudia Ramírez