Web-page improvement Version 1.5:

The Critical Projects Process Website at cpp.juntasupervision.pr.gov has been updated for April.  Most of the new functionality is in the backend (agency notification, event logging, etc), however users may receive additional emails when they first log on.

Project Submission Requirements Under Title V:

Project owners should ensure that submitted projects meet the requirements under Section 503(a) of Title V. These requirements include, but are not limited to the impact the project will have on an emergency, and the environmental and economic benefits provided by the project. Other important requirements to include in the project submission are the total cost of the project, and the current status of the project.

Of particular importance is the information requirements regarding project financing, which are imperative for the Revitalization Coordinator in order to properly assess the economic feasibility of such projects.

• PROMESA Sec. 503(a)(1)(B) states that the Revitalization Coordinator should verify “the availability of immediate private capital or other funds, including loan guarantees, loans, or grants to implement, operate, or maintain the project.”
  • The Revitalization Coordinator is required to verify that the project has immediate funds available to take care of the costs of the project. To provide such information, a project sponsor can provide Letters of Intent from financing parties, documenting that these stakeholders are able to finance the project.
• Sec. 503(a)(1)(C): “the cost of the project and amount of Puerto Rico government funds, if any, necessary to complete and maintain the project.”
  • Costs of the project to the Government of Puerto Rico includes contributions not collected by the government because of tax exemptions.
  • To fully determine what is the cost that the proposed project will have for the Government of Puerto Rico in the form of contributions not collected because of tax exemptions, it is necessary to submit a projected 5-year Profit and Losses analysis of the project to apply these tax exemptions and calculate how much these are worth. Also, the project sponsor must submit the Act or Law that the tax incentives are under. If the project already has a tax decree, the project sponsor must make it available in the project submission.

A project submission that does not provide all the information necessary for the Revitalization Coordinator to make a comprehensive evaluation will be considered incomplete. Incomplete project submittals will be reverted to the project sponsor, who will have a 20-day timeline to provide requested information in order to submit for financial analysis. Only completed project submissions can be evaluated towards a possible Critical Project designation.

Is Full Title needed under Title V?

Title V does not require full title (in Spanish, “titularidad”) to the proposed site for the projects to be considered a Critical Project. However, projects to be submitted under Title V must have some degree of authorization of use for the proposed site or should provide the steps to be followed by sponsors to secure such authorization.

If sponsors do not provide at least the former, the Revitalization Coordinator will not be in a position to make a proper assessment of the probability that the projects have to start, and a Critical Project designation may be delayed or not possible.

Critical Projects Process Information Session

We will be hosting several CPP information sessions in the coming months, to provide insights on using the Critical Projects Process for investing in Puerto Rico.  In these sessions investors, developers and other interested stakeholders will have an opportunity to receive and share information regarding use of the CPP for opportunities in Puerto Rico; clarify opportunities and processes; and connect with interested parties in desired clusters.  If you are interested in such an event, please send a note to cppsupport@promesa.gov with “CPP Information Session” in the title of your message.