Today, Puerto Rico Governor Ricardo Rosselló submitted updated fiscal plans to the Financial Management and Oversight Board, as required under the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA). The proposals include initial plans for the privatization of the Puerto Rico Electric Power Authority (PREPA). Chairman Rob Bishop (R-UT) issued the following statement:  

“These plans are a first step in Puerto Rico’s future recovery, of which the privatization of PREPA will be a key component. However, the transformation of PREPA and the recovery of the island will not occur overnight, and cannot be done behind closed doors. It is imperative the Oversight Board and Governor fully integrate those who hold the debt into the development of these plans, thereby guaranteeing accuracy and transparency in the underlying assumptions. After all, the Board’s stated goal under PROMESA is to return Puerto Rico to fiscal accountability and the capital markets, and this can only occur if the fiscal plans respect the lawful priorities and liens of debt holders. My committee will be following the development of these plans intently to ensure financial stability and success return to the island.”

Background:

PROMESA, which became Public Law 114-187 on June 30, 2016, vested the Oversight Board with exclusive control to facilitate the development, enactment and implementation of fiscal plans as a means to restore fiscal solvency and access to capital markets for Puerto Rico.

The initial plans were approved by the Oversight Board in March 2017.  The devastating impacts of Hurricanes Irma and Maria necessitated the development of new fiscal plans.  

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