Oversight Board removed four energy projects

The Board reported yesterday that four power related projects  submited for consideration were removed from the “Critical Projects Process”, so they will no longer follow the expedited process provided by the federal PROMESA law.

The removed projects are the Arecibo incinerator, by Energy Answers; the Parque Eólico del Norte (North Wind Farm), by the New Era Eolic company;  improvements to reduce energy and water consumption in correctional facilities in Bayamón and Ponce, by NORESCO; and the replacement of PREPA generation units by Team Peaker Puerto Rico.

These were, precisely, the first projects that the Board received, on January 8, under Title V PROMESA, which allows them to be classified as "critical" if they meet the local economy´s infrastructure needs.

For 30 days, public comments on the projects were received . Noel Zamot, the Board´s Revitalization Coordinator had 30 more days to answer comments and submit a report with recommendations to Governor Ricardo Rosselló.

“As per Project Sponsor's request”

Yesterday, the Board published on its website, that the four projects were removed from the "critical projects process" at the request of the sponsors.

 “Sponsor may provide additional information to continue the project evaluation in the future,” the entity said.

The Board added that the public comments  “submitted to date will be archived to be considered” in case the sponsor considers to continue with the evaluation of the project.

Investment

The four projects removed represent an investment of $ 1.47 billion, mostly, private funds.

The Arecibo incinerator project no longer had the endorsement of La Fortaleza. Last month, Rosselló said he was withdrawing his endorsement of the $ 860 million project, which would have taken 42 months.

The Parque Eólico del Norte (North Wind Farm), of $ 47.5 million, includes the installation of six wind turbines, in Vega Baja. The project would generate 19.8 megawatts, and would be surrounded by a recreational park, a community center, a veterans' memorial, an amphitheater and office spaces.

On the other hand, improvements to reduce the consumption of energy and water in the prisons of Bayamón and Ponce would cost $ 25.3 million and would take 24 months. NORESCO believes this project would have a 20 to 25 years useful life.

And the replacement of PREPA generation units, at a cost of $ 538 million, would be made in Guayanilla, Salinas, Guayama, Yabucoa, Vega Baja, Toa Baja and Ceiba. The project would take 18 months and would allow the integration of renewable energy, according to its proponent.

By press time, the Board had not published  neither Zamot's report nor Rossello's recommendations.