Government

P3 Authority opens call for feedback on PREPA transformation

The process is aimed at receiving feedback from market participants on PREPA’s transformation process.

The Puerto Rico Public Private Partnership Authority announced the start of the process to solicit market feedback in connection with the proposed transformation and modernization of the Puerto Rico Electric Power Authority.

The market feedback is conducted in consultation with the Financial Oversight and Management Board for Puerto Rico and the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF, for its initials in Spanish.)

In January 2018, the government of Puerto Rico announced its intent to transform and modernize the electric system through private ownership or operation of PREPA’s assets.

The transformation could take a variety of forms including a concession or management agreement for the transmission and distribution system, a sale, lease or concession of certain PREPA-owned generation assets or other similar structures and could entail a single deal or a series of transactions.

PREPA is currently a vertically-integrated utility serving approximately 1.5 million customers across Puerto Rico.

“The government of Puerto Rico, the Oversight Board and PREPA have identified certain key objectives that will be considered as part of this transformation process including, without limitation, delivering low-cost electricity to ratepayers of Puerto Rico, increasing energy resiliency and reliability, deploying new technologies, investment and financial strength and exercising industry best-practices and operational excellence,” the P3 Authority said in a release.

“The ultimate transformation process and transactions will be run in accordance with the relevant legislation passed by the Puerto Rico Legislature and in connection with PREPA’s Title III case,” the agency added.

Citigroup Global Markets Inc. and Rothschild & Co., will take the lead in identifying private sector solutions that fulfill the vision laid out by the Government of Puerto Rico: a long-term concession for PREPA’s transmission and distribution and privatization of the utility’s generation assets. Citi is acting as lead investment banking advisor on the PREPA transformation.

Interested parties are encouraged to visit the following website for additional information regarding the market sounding feedback process. Interested parties are also advised that they must follow the communications protocol stated in the market sounding documents.

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