Process is aimed at receiving feedback from market participants on PREPA’s Transformation Process
SAN JUAN, P.R.– The Puerto Rico Public Private Partnership Authority (the “P3 Authority”) announced today that the process to solicit market feedback in connection with the proposed transformation and modernization of the electric system has commenced. The market feedback is conducted in consultation with the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”) created by Congress under the bipartisan Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”) and the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”).
In January 2018, the Government of Puerto Rico announced its intent to transform and modernize the electric system through private ownership or operation of the assets of the Puerto Rico Electric Power Authority (“PREPA”). The transformation could take a variety of forms including a concession or management agreement for the transmission and distribution (“T&D”) system, a sale, lease or concession of certain PREPA-owned generation assets or other similar structures and could entail a single or a series of transaction(s). 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 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.
Citigroup Global Markets Inc. (“Citi”) 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 http://www.p3.pr.gov/prepa-transformation.html 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.