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Puerto Rico Senate probes maritime alliance contract terms with HMS Fénix LLC

April 20, 2021 | Senate, Committees, Legislative, Puerto Rico, International


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Puerto Rico Senate probes maritime alliance contract terms with HMS Fénix LLC
The Comisión de Proyectos Estratégicos y Energía convened on April 20, 2021, to address critical issues surrounding the public-private partnership (PPP) contract between Puerto Rico's maritime transport authorities and HMS Fénix Puerto Rico LLC. This meeting was sparked by Senate Resolution 31, which mandates a thorough investigation into the terms and conditions of the contract, focusing on service delivery to residents of the municipalities.

Key points of discussion included the ticket sales process, both in-person and online, potential fare increases, established schedules, and the number of vessels to be utilized. The committee also scrutinized maintenance protocols and the guarantees provided by the company regarding service compliance, efficiency, and effectiveness metrics outlined in the contract. Notably, the resolution seeks to determine if there are penalties for non-compliance with these standards.

The Authority for Public-Private Alliances presented its insights, emphasizing its role as the sole governmental entity responsible for implementing public policy to foster PPPs. This includes promoting infrastructure development, sharing risks between the state and contractors, and enhancing public services while stimulating job creation and economic competitiveness.

The meeting underscored the importance of the PPP framework established under Law 29, which provides a transparent mechanism for the government to delegate functions and services. This law is seen as a vital tool for economic recovery in Puerto Rico, especially given the current fiscal challenges and slow access to federal aid for infrastructure improvements.

As the investigation progresses, the outcomes could significantly impact the future of maritime transport services in Puerto Rico, shaping how residents access essential services and ensuring accountability in public-private partnerships. The committee's findings will be crucial in determining the viability and effectiveness of the current contract and the broader implications for similar projects in the territory.

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