Puerto Rico's Financial Crisis: Energy, Debt, and Oversight Board Concerns

Puerto Rico's Ongoing Crises

• 🇵🇷 Puerto Rico continues to face devastating crises, requiring a response focused on helping its people recover and thrive.
• 💡 The need to listen to and support the people of Puerto Rico, their needs, goals, and vision for the future, is paramount.

Energy Crisis and Fuel Supply

• ⚡ The energy crisis persists, with an unreliable electric grid and inconsistent, unaffordable energy access for many.
• ⚠️ Concerns were raised about New Fortress Energy Company withholding much-needed liquified natural gas shipments.
• 🚢 The CEO of New Fortress Energy reportedly threatened to turn their ship around, impacting fuel delivery.

Oversight Board's Contract Review

• 🧐 The Financial Oversight and Management Board reviewed a long-term fuel supply contract due to significant disparities from the RFP and concerns about market competition.
• ⏳ The board requested more time for review, which was not granted, leading to a contract expiration and a subsequent fuel delivery stoppage.
• 📉 If fuel was withheld as a negotiation tactic, it would be a despicable act against the people of Puerto Rico.

Contract Provisions and Debt Negotiation

• ⚖️ Egregious provisions in the contract included broader exclusivity over the San Juan port than previously established.
• 💰 The contract included a take-or-pay clause for specific volumes, raising concerns about paying for fuel for unconstructed new generation assets.
• 🤝 Regarding debt, Golden Tree is reportedly refusing to negotiate on owed debt or interest.
• 🗣️ The board is actively engaged in court-ordered mediation with non-consenting bondholders, aiming for a consensual agreement.