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Reason Foundation

Puerto Rico Gov. Luis Fortuņo Embraces PPPs

Harris Kenny
March 8, 2011, 7:05pm

Puerto Rico Governor Luis Fortuño recently sat down with Matt Welch of reason.tv, where they discussed a wide range of topics. Gov. Fortuño explains in the interview that during his time in office he has:

One especially interesting section of the interview is Gov. Fortuño's discussion of public-private partnerships (PPPs) in Puerto Rico, he notably says, "It is obvious that our governments no longer have the kind of money we used to have to develop our basic infrastructure."

A clip of the PPP discussion is available below, from 20:08-22:05.

Reason Foundation discussed Gov. Fortuño's approach towards PPPs at length in the Annual Privatization Report 2010: State Government Privatization section. Below is an excerpt from that section:

The 2009 law (Act No. 29) authorizes any government agency to enter into PPPs with private firms for the design, construction, financing, maintenance or operation of public facilities. In return for upfront payments, the Commonwealth would grant investors long-term leases during which they could recoup user fees. Under the law, most PPP contracts are limited to 50-year leases, though legislators can approve an extension up to 25 additional years. The law also established a new Public Private Partnership Authority (PPPA), a unit within the Government Development Bank responsible for identifying, evaluating and selecting PPP projects and for monitoring and enforcing the terms of PPP contracts... Initiatives advanced by the PPPA thus far include:

For more, download the full State Government Privatization section here, and see the entire Annual Privatization Report 2010 here.


Harris Kenny is Policy Analyst


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