CPI: public money at risk in the Aguirre Gas Port

On August 25, 2014, CPI reported that the project to bring liquefied natural gas to the Puerto Rico Electric Power Authority (PREPA) plant in Salinas —Aguirre Offshore GasPort (AOGP)— lacked guaranteed financing, final permits and endorsement from affected communities. Even so, PREPA had already signed three contracts for more than $280 million with Excelerate Energy and its AOGP subsidiary, with most economic risks on the public corporation.

The March 17, 2014 contracts include an “Infrastructure Agreement” capped at $227,444,113.85 (AOGP and PREPA understand the real cap is ~$295 million); an Operation and Maintenance agreement capped at $499,900; and exclusivity for storage and regasification / Floating Unit lease, cap $52,248,458. PREPA said it had already disbursed $1,822,177.34 for work done before the infrastructure agreement took effect.

The same contract requires paying $10 million within five days when AOGP presents evidence of the draft environmental impact statement and FERC opens the comment period; if unpaid on time, AOGP collects with interest. PREPA told CPI that $10 million payment had not been issued. Professor Saadé warned that disbursing before closing the project risks the Authority’s financial capacity.

Financing: a GDB subsidiary (discarded), P3, a credit line or own/federal funds were considered; PREPA’s precariousness and the bond downgrade blocked locking a source. Juan Rosario (public-interest board member) alleged the final 135-page version was not presented to the Board. Allen & Overy advises PREPA; Duane Morris advises Excelerate. FERC draft EIS: adverse impacts on corals, manatees and turtles; comments through ~29 Sep 2014. Disbursement ≠ theft. Contract ≠ crime. Primary: CPI 2014-08-25.

Source: Centro de Periodismo Investigativo. https://periodismoinvestigativo.com/2014/08/dinero-publico-en-riesgo-por-el-aguirre-gas-port/