After the Legislative Assembly’s refusal to transfer $ 750 million From the general fund to the Luma Energy consortium, the Fiscal Control Board proceeded to identify and approve the money to complete the concession of the transmission and distribution system of the Electric Power Authority (PREPA).
This was assured to THE SPOKESMAN sources of the Fiscal Control Board.
Despite the fact that the fiscal board had ordered the Legislature to secure the $ 750 million reserve, the House of Representatives defeated House Joint Resolution 139 that sought the allocation of the money. The president of the Chamber had assured before the vote that they would defeat the measure.
However, Eduard Zayas, spokesman for the fiscal entity, assured THE SPOKESMAN that, regardless of the position of the House, the federal Promesa law allows the Board to proceed with the approval of the money.
“The Board will follow the procedures in accordance with Section 202 of Promise, which gives it the authority to approve budgets and fiscal plans. At the end of the day, whether they approve it or not, the board, according to Promise, has the power to certify the necessary $ 750 million ”, he said.
“The $ 750 million comes from the reserves that the Government of Puerto Rico has accumulated over the past four years. It does not alter the current budget or the next one,” said Zayas.
The figure will go to PREPA’s reserve account and will add to another $ 250 million in the corporation’s coffers for a total of $ 1 billion. Upon completion of the transition, PREPA will have to pay LUMA an annual compensation that will start at $ 70 million, which for the second and third years would amount to $ 90 million and $ 100 million respectively. For the remainder of the contract term, the payment will amount to $ 105 million.
“These monies go to PREPA’s reserve accounts for operating expenses. It is a reserve that not only PREPA, but also the Government of Puerto Rico, and all the agencies should always have to cover any emergency or deficiency,” he added.