The Puerto Rico Public-Private Partnerships Authority (P3A) is conducting a procurement process to select a private operator under an Operation and Maintenance agreement for the Puerto Rico Electric Power Authority’s (PREPA) transmission and distribution system.
The prospective transformation of PREPA-owned generation assets may involve a similar O&M agreement, a sale, lease, concession or other similar structures, and could entail a single or a series of transaction(s). The P3A and Citigroup Global Markets, advisor to the Oversight Board, are working on the solicitation of market feedback together.
In January 2018, the Government of Puerto Rico announced its intent to transform and modernize the electric system through private operation or ownership of the assets of PREPA. PREPA is currently a vertically-integrated utility serving approximately 1.5 million customers across Puerto Rico.
The Government of Puerto Rico, the Financial Oversight and Management 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 P3A is seeking written responses from parties that are interested in participating in potential generation focused transaction(s). These written responses will help the Government of Puerto Rico, the P3A and the Oversight Board develop a proposed transaction structure to be included in a later process to be run by the P3A.
The P3A requests that parties wishing to participate in the solicitation submit written responses no later than December 13, 2019.
The proposed procurement timetable at this stage is:
- Market Sounding (Q4 2019)
- Request for Qualifications Process (Q4 2019 – Q1 2020)
- Request for Proposals Process (Q1 2020 – Q3 2020)
- Closing Period (Q3 / Q4 2020)
Full details can be read here.