Puerto Rico reconstruction ‘at risk’ amid possible changes in federal policy, loss of funds
A report by Pacífico Group states it would take another 17.5 years to complete all reconstruction projects.
Puerto Rico faces an “alarming risk of significant delay” in executing recovery projects due to potential changes in federal policy following the upcoming presidential elections, according to the latest “Puerto Rico State of Reconstruction Report” from Puerto Rican tech compliance company Pacífico Group.
With the possibility of a new federal administration with different priorities and restrictions, Puerto Rico’s recovery could be at risk of losing crucial project funding, the report warned.
The report reveals that at the current rate of growth in the Construction and Compliance Index (ICON-4339), it would take an estimated 17.5 more years to complete all reconstruction projects.
“This rate of progress is unsustainable in the context of political changes that could affect the continuity of allocated funds. With an average quarterly growth of 1.11%, the slow pace of project execution increases the likelihood that funding will be questioned or even reduced in the event of a change in federal priorities,” the study concluded.
“With the imminent change in the U.S. presidency, we are faced with the urgency of accelerating the execution of the funds allocated for the recovery of Puerto Rico,” said Brian Díaz, CEO of Pacífico Group.
“Federal policy can be unpredictable, and the new administration could have other priorities. We cannot afford to lose these funds; if we do not make substantial progress in the execution of projects, we run the risk that resources will be redirected or limited in the future,” he added.
To mitigate this risk, it is essential that local entities, municipalities and nonprofit organizations managing these funds act promptly and in coordination to speed up execution and move projects toward completion, Díaz noted.
“It is necessary that all subrecipients intensify their efforts and focus their resources on advancing toward the construction and completion stages of the projects. Only in this way can we protect the allocated funds and demonstrate concrete progress amid any political change in the federal administration,” Díaz said.
The report also urges candidates in Puerto Rico’s upcoming elections to take a firm stance on prioritizing the effective and rapid implementation of these recovery funds.
“The risk of losing these resources in the context of federal changes is too high to ignore. Local leaders are urged to strengthen their fund management policies and voters are urged to carefully analyze the candidates’ proposals regarding the island’s recovery,” the report stated.
“The possibility of losing federal funds is real and urgent,” Díaz emphasized. “We cannot allow a lack of effective execution to put us at risk of losing the opportunity to rebuild Puerto Rico. This report should serve as a call to action to ensure that funds are used quickly and efficiently, thereby protecting the future of our communities.”
Pacífico Group specializes in technical management and digital solutions for recovery processes in Puerto Rico and the U.S. mainland.
