Puerto Rico receives three unsolicited proposals for PPPs

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Puerto Rico receives three unsolicited proposals for PPPs

The government of Puetro Rico has decided to conduct feasibility studies of three unsolicited proposals for PPP projects.

The American company Tesla has proposed to create power microgenerators that would operate with photovoltaic panels and batteries for storage. This aligns with the government's aim to provide Puerto Rico with 25-30% of its energy from renewable sources. It also follows considerable activity by Tesla in the region. Since Hurricane María, Tesla has donated photovoltaic panels and batteries to Culebra and Vieques, and the El Niño Hospital.

The Ana G. Méndez University System (SUAGM) has proposed to professionalize the education of all employees of the Department of Public Safety and the Department of Correction. Governor Ricardo Rosselló has assured that this would not replace the Police Academy in Gurabo.

The third proposal is from the company Global Ports Holding for the management, financing and development of the six tourist ports of San Juan.

In an interview with Puerto Rican newspaper El Nuevo Día, Governor Rosselló said that these unsolicited proposals could add US$250 million in investment to the island's economy and create 8,000 jobs. He believes that the projects could save the government between US$20 million and US$30 million. 

These three proposals add to three other unsolicited proposals that the government announced on 16 October 2017. These were received from the companies Cube Hydro, Bostonian Group, a subsidiary of Marsh & McLennan Agency, and Puma Energy, and concern projects focussed on stability, diversification and optimization of alternative mechanisms of the island's energy system. 

Unsolicited proposals are a very new development in PPP policy in Puerto Rico. It was not until earlier this year that the government amended the 2009 PPP Act (Law 1-2017) to allow the private sector, academy and non-profit organizations to submit proposals for PPP projects without a supporting government initiative.

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