Puerto Rico News Digest For October 19, 2015

GOV'T OFFICIALS GO BEFORE GRAND JURY

From The San Juan Daily Star:

"La Fortaleza Public Aff airs Secretary Jesús Manuel Ortiz said he
and former La Fortaleza Chief of Staff Ingrid Vila were summoned
to appear before a federal grand jury, but he stressed that Gov. Ale-
jandro García Padilla has not been cited in relation to a probe into
alleged contracts given to a huge Popular Democratic Party (PDP)
donor. The STAR learned that House Speaker Jaime Perelló was al-
so summoned, but his office did not confirm the information. Also
cited was PDP Sen. Mari Tere González, who said federal officials
requested certain information from her that she declined to divulge.
Federal officials are allegedly investigating contracts awarded to
Anaudy Hernández Pérez, who testified in the corruption case aga-
inst former judge Manuel Acevedo..."

RESERVOIR LEVELS RISE OVER WEEKEND

Rains over the weekend boosted the water levels for several reser-
voirs across Puerto Rico. La Plata, the only reservoir which is still
under a water rationing plan, saw its level increase by 39 centime-
ters to 40.58 meters. La Plata, which serves much of the San Juan
metro area, would have to reach at least 43 meters for rationing to
be discontinued.

PR BOXER IN CRITICAL CONDITION IN VIRGINIA

From Caribbean Business:

"Boxer Prichard Colón was in critical condition Sunday after suffe-
ring a brain bleed from an injury during a bout in northern Virginia,
an official said. Colón underwent surgery to relieve pressure on his
brain after his bout Saturday afternoon against Terrel Williams in the
Washington, D.C., suburb of Fairfax, Virginia, said Lou DiBella, pre-
sident of DiBella Entertainment. Within moments of showing symp-
toms in his dressing room after the fight, Colón was under the care
of emergency medical technicians and rushed to Inova Fairfax hos-
pital, DiBella said. "He suffered a brain bleed as a result of an inju-
ry during the bout and underwent immediate surgery to relieve pre-
ssure on his brain," DiBella said in a statement. "His condition re-
mains critical..."

HYATT HOUSE BEATS 1ST YEAR EXPECTATIONS

From News Is My Business:

"With prolonged and recurrent stays, the guests of Hyatt House San
Juan, located at the Convention Center District in Miramar, have pro-
pel the propert to surpass its first-year expectations, Francisco Maria-
ni, manager of Hyatt Puerto Rico said. The opening of the Hyatt Hou-
se San Juan in October 2014, introduced the tourist market to the first
and only hotel, with a select style, that offers deals in extended-stay
in Puerto Rico..."

Puerto Rico News Digest For October 14, 2015

SPECIAL INVESTIGATIONS MAKES SEVERAL ARRESTS

From Caribbean Business:

"Since dawn Wednesday, Special Investigations Bureau (NIE by its
Spanish acronym) agents have been processing the arrests of 38 peo-
ple employed  at the Transportation and Public Works Department
and other agencies for fraud in the issuance of driver's licenses and
other administrative violations..."

CRIM & GDB CLOSE TO SETTLING DISPUTE

From The San Juan Daily Star:

"The Municipal Revenue Collections Center (CRIM by its Spanish
acronym) and the Government Development Bank (GDB) are about
to reach an agreement to alleviate the controversy surrounding the
municipal funds deposited in the government bank, Cayey Mayor
Rolando Ortiz said..."

PUERTO RICO SUMMIT TO BE HELD IN ORLANDO

From Reuters:

"Puerto Rican and U.S. leaders will meet in Florida on Wednesday
to discuss ways to promote Puerto Rico's interests in Washington as
the island weathers a major debt crisis. Civic leaders in the U.S. with
ties to Puerto Rico..."

CONTROL BOARD BILL TO BE FILED THIS WEEK

From Reuters:

"Legislation to create a financial control board for heavily indebted
Puerto Rico will be filed on Thursday or Friday, the U.S. territory's
government affairs secretary Jesus Manuel Ortiz said on Tuesday. The
financial control board..."

WATER RESERVOIR LEVELS FOR TODAY

Carraizo and La Plata, both of which serve the San Juan metro area,
are to the left. Information is from 5:00 AM today. Click image to
enlarge.

Puerto Rico News Digest For October 5, 2015

TRACES FOUND OF MISSING SHIP

From Fox News Latino:

Aircraft and ships searching off the Bahamas islands for a U.S. cargo ship
that lost contact during Hurricane Joaquin have found more debris and clues
but no definitive word yet on the fate of the vessel or the 33 people on board.
The owner of the 790-foot El Faro said a container that appears to have come
from the ship was found, while the Coast Guard said it had located a debris
field that included what appeared to be pieces of container. Searchers have
also spotted an oil sheen and found a life ring from the El Faro. Chief Petty
Officer Bobby Nash said it was too early to come to any conclusion. Two
Coast Guard cutters, the Northland and Resolute, were expected to continue
searching overnight Sunday as the aircraft returned to their bases.

POLICE SEIZE $5.4 MILLION DRUG SHIPMENT

From Caribbean Business:

"Authorities are searching for three suspects who allegedly attempted to
smuggle $5.4 million worth of drugs into Puerto Rico from the Dominican
Republic. Police said they arrested Teófilo Tineo González, a 36-year-old
Dominican man, after seizing about 518 pounds (235 kilograms) of cocai-
ne and heroin and a 22-foot (6.7-meter) boat on the coast west  of San Juan,
but three other suspects got away. Police Superintendent José Caldero said
authorities were hunting for three others they believe were aboard the boat
that left the Dominican Republic for Puerto Rico on Wednesday night..."

RESERVOIR LEVELS GO UP OVER THE WEEKEND

Rains over this past weekend have raised the water level at the Carraízo and
La Plata reservoirs, both of which serve the bulk of the San Juan metro area.
La Plata went up by 47 centimeters from Sunday morning to Monday morn-
ing, for a level of 40.50 meters. La Plata's users, however, are  still a ways
away from being taken off the current 24-hour water rationing plan they are
currently under. The reservoir would have to reach at least 43 meters for ra-
tioning to be discontinued. The Carraízo reservoir saw its water level rise over
the weekend to 38.47 meters, staving off for now a return to a rationing plan
for its 160,000 users. Its level rose by 26 centimeters from Sunday to Monday.

EPA FINALIZES PLAN FOR CONTAMINATED WELL

From The San Juan Daily Star:

The U.S. Environmental Protection Agency (EPA) finalized a plan to use
natural processes along with the continued use of a system that the federal
agency had already installed to treat contaminated groundwater at the Coro-
zal Well Superfund Site in Corozal, officials announced Thursday. Previou-
sly, the EPA installed a system that uses carbon to address pollutants as an
initial step to address the risks posed by people drinking contaminated gro-
undwater. Data collected since EPA installed the system confirms that there
are no levels of concern at the well. The system will remain in place as a sa-
feguard.

Puerto Rico News Digest For September 18, 2015

CARRAIZO RESERVOIR KEEPS RISING

The Carraízo water reservoir, which serves a large part of the  San Juan
metropolitan area, registered a level this morning of  38.52 meters, only
48 centimeters away from reaching "Observation Level". That level is
the goal that Puerto Rico's water utility, AAA, had set for ending  the
water rationing plan that thousands of users in the metro area have been
enduring for several months. Water rationing is currently on a 24 hour
alternating schedule. The other major reservoir in the  area, La Plata,
saw gains of 2 inches overnight, but it's levels are considerably lower
than Carraízo's and rationing for La Plata users is not expected to end
any time soon.

GOVERNMENT MAY HAVE TO SHUT DOWN

From The San Juan Daily Star:

The Puerto Rico government will have to decide in favor of a partial
government shutdown or go into default on its general obligations due
in January if the projections of a report by financial advisers materiali-
ze. “If Conway MacKenzie’s forecast materializes, then there is a sig-
nificant risk of at least a partial government shutdown before the end
of 2015,” Center for the New Economy (CNE) Public Policy Director
Sergio Marxuach said. The report of the advisory firm Conway Mac
Kenzie states that the government may have a bank cash deficit of
$29.8 million in November and a peak cash defi cit of $511.6 million
in June. However, it states the commonwealth Treasury single account
will have a deficit of $612 million or $1.788 billion, the last number in
the event of all risks occurring.

GOVERNOR MEETS WITH US TREASURY SECRETARY

From Caribbean Business:

Gov. Alejandro García Padilla held several meetings this week in Wa-
shington, D.C., with Obama administration officials and members of
Congress, with the discussions focusing on fiscal and economic deve-
lopment issues, including access to Chapter 9 bankruptcy protection,
Medicare funding, infrastructure projects and corporate tax treatment.
García Padilla met with Treasury Secretary Jacob J. Lew and National
Economic Council Director Jeffrey Zients Thursday. The group discu-
ssed the recently released Fiscal & Economic Growth Plan. According
to a statement released by Treasury, Lew and Zients "commended the
governor for producing a serious and comprehensive accounting of the
Commonwealth’s overall fiscal position and proposal for how the Co-
mmonwealth can achieve financial sustainability over the next five
years.”

MALL OF SAN JUAN OPENS 18 NEW STORES

From News Is My Business:

The Mall of San Juan announced Thursday that 18 new stores, including
Puerto Rico’s only Williams-Sonoma and Pottery Barn, along with luxury
brands Bulgari and Gustavo Arango and the 100th Oil & Vinegar store
will join its shopping and dining lineup this month — the majority of
which are exclusive to the market. “Our lineup of premium retailers and
restaurants will become even more distinctive this month,” said Marnie
Marquina, marketing and sponsorship director, The Mall of San Juan.
“From talented Puerto Rican designers to stores exclusive to the island,
we’re excited to offer our customers a truly unique shopping and dining
experience.”

64,000 PEOPLE LEFT PR LAST YEAR

From ABC News:

A record 64,000 Puerto Ricans left the island last year for the U.S. main-
land, the highest number in the past decade, officials said Thursday. The
exodus represents a 31 percent increase from 2013, when some 49,000
people left, according to the island's Institute of Statistics. The surge in
departures comes as the U.S. territory of 3.5 million people struggles with
a nearly decade-long economic slump. The island has a 12 percent unem-
ployment rate, higher than any U.S. state, and has a labor participation ra-
te of less than 40 percent, compared to 62 percent on the U.S. mainland.

Puerto Rico News Digest For September 10, 2015

PUERTO RICO BRACES FOR BUDGET CUTS

From AP / WINK News:

Puerto Rico is bracing for widespread spending cuts after the government
released a long-awaited fiscal reform plan on Wednesday that would redu-
ce much of the island’s $72 billion public debt and calls for restructuring
the remainder at the expense of bondholders. The five-year plan proposes
that the government cut subsidies to municipalities and the University of
Puerto Rico, offer early retirement and reorganize or merge state agencies.
It also calls on the government to extend until 2021 legislation that would
freeze new hires, salary increases and collective bargaining agreements.
Gov. Alejandro Garcia Padilla acknowledged in a televised address that
Puerto Ricans already have had to endure new taxes, an increase in utility
bills and layoffs during a nearly decade-long economic stagnation.

FINANCIAL CONTROL BOARD TO BE ESTABLISHED

From Caribbean Business:

A five-member, independent financial control board will be tasked with
ensuring that the recently released Fiscal & Economic Growth Plan (FE
GP), once approved, is followed, and would have the necessary powers
to ensure compliance, particularly if subsequent administrations decide
to do away with the final plan. It would be in place for the five-year pe-
riod of the plan, after which further extending its term would be conside-
red. Moreover, the board would have the authority to approve the plan,
as well as the power to force budgetary cuts, among other corrective ac-
tions, which will be part of draft legislation to be submitted to the Legis-
lature for its establishment. It has yet to be revealed when the Economic
Recovery Working Group will deliver its proposed legislation to Puerto
Rico lawmakers for their necessary approval.

WATER RESERVOIR LEVELS FOR TODAY

Carraizo is on the far left, while La Plata is immediately to its right.
Users served by both reservoirs are currently subject to water ratio-
ning. Some rain has fallen over the area this morning, with more ex-
pected over the next two days, as two low pressure systems pass over
the area.

SCHOOLS MAY RETURN TO NORMAL SCHEDULE

From The San Juan Daily Star:

If the water levels at the Carraízo and La Plata reservoirs continue in-
creasing, the Education Department may change the policy implemen-
ted at the beginning of the school year and return to normal school days
and hours -- offering classes Monday to Friday or extending school hours
 at those public schools where class periods have been reduced due to wa-
ter rationing. In a radio interview Tuesday, Education Secretary Rafael
Román said the rationing plan has cost the agency close to $1 million in
the purchase of water cisterns and water storage containers for the sch-
ool’s cafeterias, among other facilities, in order to supply water at the
affected schools. Román said that toward the end of the week he will be
discussing the state of the reservoirs and the changes made in the ratio-
ning plans.

CRUISE SHIP PASSENGES FLOWN TO PR

From Yahoo! News:

Officials say Carnival Cruise Lines is flying 770 passengers to Puerto
Rico after their ship caught in fire in the U.S. Virgin Islands. The
president of the company that manages the dock where the ship is ber-
thed says six chartered flights were headed Wednesday to Puerto Rico.

Puerto Rico News Digest For August 31, 2015

RESERVOIR LEVELS GO UP AGAIN

Rains produced by Tropical Storm Erika and a low pressure  system that
passed over the island yesterday have helped  boost water levels at the
Carraízo and La Plata reservoirs. La Plata, the reservoir most affected by
the drought, was  up seven centimeters this morning. Carraízo increased
by 4 centimeters, with a total gain over the last several days of 2.67 me-
ters. Due to the increase, the water rationing plan for users served by Ca-
rraízo has been changed to two days without service and one day with wa-
ter from the recent three-days-off/one-day-on plan. The rationing plan for
users served by La Plata remains unchanged.

ERIKA LEAVES $20M IN AGRICULTURE LOSSES

From Caribbean Business:

After estimating preliminary losses at about $6 million in damaged agricul-
tural crops after Tropical Storm Erika’s passage through the island, these
estimates have soared to as much as $20 million, according to Puerto Rico
Agriculture Secretary Myrna Comas. Among the most damaged crops, par-
ticularly due to Erika’s winds, are plantains and bananas, while losses have
also been reported in coffee and orange plantations. Affected municipalities
include Yabucoa, Maunabo, Salinas, Adjuntas, Lares, Maricao and other
towns in the island’s mountainous region. Erika also ruined hydroponic
greenhouses and other shade-house projects.

CUOMO TO LEAD PR ECONOMIC DELEGATION

From NY Daily News:

In the midst of the economic crisis in Puerto Rico, Gov. Cuomo is set to ann-
ounce he’ll soon be leading a delegation to the troubled island,  sources tell the
Daily News. The “solidarity” trip is expected to take place in early September
and involve a group of “financial experts” and elected leaders, including City
Council Speaker and Puerto Rico native Melissa Mark-Viverito, said one sour-
ce familiar with the developing plans. “New York is home to more Puerto Ri-
cans than any other state in the country, and the governor believes we have a
responsibility to support our  friends in times of need,” the source said.

PUERTO RICO DELAYS FISCAL PLAN

From Reuters:

Puerto Rico News Digest For August 3, 2015

PR PUBLIC FINANCE CORP DEFAULTS 

From Bloomberg:

A Puerto Rico agency is poised to default Monday, initiating a clash with cre-
ditors as the struggling commonwealth seeks to renegotiate its $72 billion debt
load. The government doesn’t have the money for the $58 million of principal
and interest that was due Aug. 1 on Public Finance Corp. bonds, Victor Suarez,
the chief of staff for Governor Alejandro Garcia Padilla, said during a press con-
ference July 31 in San Juan. The financing corporation’s obligation is part of $
597 million of debt-service payments that the common-wealth and its agencies
owe this month. It would mark the first payment default by a Puerto Rico entity.

O'MALLEY SPEAKS ON PR CRISIS

From Caribbean Business:

Former Maryland Gov. Martin O'Malley, a Democratic presidential candidate,
arrived Friday night in Puerto Rico, making it his fourth time on the island in the
past two years[...]In Puerto Rico, he intends to reiterate his position regarding the
island’s exclusion from the federal bankruptcy code’s chapter 9 protections and
local Medicare payment rates. The presidential candidate reportedly supports a-
llowing Puerto Rico to declare bankruptcy and backs the island’s call for federal
healthcare reimbursement-rate parity with the U.S. mainland. O'Malley told the
Associated Press that Puerto Rico should receive the same benefits as the U.S.
He said that Wall Street, forces on the mainland and a Republican Congress were
treating the island unfairly.

TOWNS IN EXTREME DROUGHT TRIPLE

From The San Juan Daily Star:

Natural and Environmental Resources (DNER) Secretary Carmen Guerrero Pé-
rez said Thursday the United States Drought Monitor increased the number of
island municipalities under the extreme drought classification to 20 as 2.5 mi-
llion people in 74 towns are living under diff erent drought categories...The 20
Puerto Rico municipalities under extreme drought are now Arroyo, Caguas, Ca-
nóvanas, Carolina, Cayey, Cidra, Fajardo, Guayama, Guarabo, Juncos, Las Pie-
dras, Luquillo, Maunabo, Naguabo, Patillas, San Lorenzo, Río Grande, Salinas,
Trujillo Alto and  Yabucoa.

WATER RESERVOIR LEVELS FOR TODAY

From AAA. Click graph to enlarge.

UPDATE: 48-hour rationing will start for customers of the La Plata reservoir
starting this coming Wednesday, August 5th.

Puerto Rico News Digest For July 27, 2015

DIVIDED NPP OUT OF ELECTION FUNDS

From The San Juan Daily Star:

The New Progressive Party (NPP) has barely enough money to operate. But for
NPP gubernatorial hopeful Ricardo Rosselló, fundraising activities have not been
affected by the fiscal crisis at all. The NPP’s finances, however, have been hit hard,
mainly because of the dispute over who will be the party’s candidate for governor.
A document from the State Elections Commission (SEC) Comptroller’s Office sho-
ws that as of June 30, the NPP had only $175 left in its electoral fund out of the $
400,000 the party receives each year for administra-tive costs. Meanwhile, the Po-
pular Democratic Party (PDP), as of June 30, had left some $171,000 left in its fu-
nd, and the Puerto Rican Independence Party (PIP) had some $260,000. Accordi-
ng to the Electoral Law, it won’t be until January 2016 that the political parties
will have access to another $600,000 for election year expenses.

AGP CALLS FOR UNITY DURING CONSTITUTION DAY

From Caribbean Business:

The unity of the Puerto Rican people was the central idea put forward by Gov.
Alejandro García Padilla in his message commemorating the 63rd year of the Co-
mmonwealth of Puerto Rico's Constitution, while people in the vicinity of the
Sabana Grande public square shouted, "Four more years!" The governor addressed
the crowd, saying Puerto Ricans should "celebrate that unity of purpose to cre-
ate an autonomous constitutional government signed in 1952." In his speech Sa-
turday, the governor spoke of former Gov. Luis A. Ferré, who ran under the Repu-
blican Statehood Party, and don Lino Padrón Rivera, of the Puerto Rican Socia-
list Party. "Without renouncing their ideals, they were able able to affix their
signatures on a document that, without a doubt, they certainly believed imperfect.
They must have known the consequences; the political and electoral risk they fa-
ced in supporting the agenda of their opponent," Luis Muñoz Marín.

CANADA BEATS PR IN PANAM VOLLEYBALL

From National Post:

Canada won its first medal ever in men’s indoor volleyball at the Pan American
Games on the final day of competition Sunday. Canada beat Puerto Rico 3-1 (25-11,
25-12, 23-25, 25-18), in front of a sea of red and white at the Exhibition Centre
to snatch the bronze medal, the 70th such medal for Canada in these Games. The
bronze also happens to be Canada’s only medal at any of the indoor or beach volley-
ball competitions. The program’s previous-best finish in men’s volleyball came in
1979 and 1999, where Canada ended up in fourth place.

TODAY'S WATER RESERVOIR LEVELS

From AAA:

Carraízo stands at 35.13 centimeteres, while La Plata is registering a 37.06 cm
level this morning. NO significant rain is expected for the next several days.

Puerto Rico News Digest For July 7, 2015

COURT: PR BANKRUPTCY UNCONSTITUTIONAL

From Caribbean Business:

The U.S. Court of Appeals for the First Circuit has ruled the Puerto Rico Public
Corporation Debt Compliance & Recovery Act of 2014 unconstitutional. A panel
comprising Judges Sandra Lynch, Juan Torruella and Jeffrey Howard was in char-
ge of the appeal at the Boston court. The Recovery Act intended to provide a bank-
ruptcy-like process for the commonwealth’s troubled public corporations, inclu-
ding the Puerto Rico Electric Power Authority (Prepa), which would allow them
to restructure their debt, giving the commonwealth much more flexibility to nego-
tiate repayment terms and even the ability to default on public corporations’ bonds.

[The ruling can be read here in.pdf format]

LA PLATA RESERVOIR DOWN 12 CENTIMETERS

Despite Guaynabo being added to the water rationing plan being enacted by the
island's water utility, AAA, the La Plata reservoir's level was down 12 centime-
ters over the last 24 hours as of this morning. The Carraízo reservoir was down
10 centimeters over the same period. The latest reservoir levels are above, with
Carraízo on the far left and La Plata immediately to its right (click on picture to
enlarge).

CLINTON SUPPORTS PUERTO RICO BANKRUPTCY

From Reuters:

U.S. Democratic presidential candidate Hillary Clinton said Tuesday that Puerto
Rico's public entities should be able to use U.S. bankruptcy laws to restructure
some $72 billion in debt. "Congress and the Obama administration need to partner
with Puerto Rico by providing real support and tools so that Puerto Rico can do
the hard work it will take to get on a path toward stability and prosperity," Clinton
said in a statement provided to Reuters.

PALMAS DEL MAR GOES SOLAR

From News Is My Business:

The Palmas del Mar Homeowners Association recently inaugurated a $227,000 

photovoltaic project, the first at Palmas del Mar, which will supply the electrical 

needs of it’s main building, an 11,000 square-foot facility.The project consists of 

292 solar panels of 250 watts each, which will produce approximately 117,238 Kw. 

hour per year. The PHA estimates it will save some $25,000 per year, and will see 

a return on its investment is approximately 4.5 years. The PHA received a $90,800 

incentive from the government to build the project, said Antonio Maldonado, exe-

cutive director of PHA.