The Weekly Journal - Wednesday, May 5, 2021

Puerto Rico and the Caribbean

Wednesday, May 5-11, 2021 - // no. 106

www.theweeklyjournal.com

>Courtesy

The Role of Businesses in Environmental Efforts LUMA Forging Ahead on June 1 Takeover P6 Cidre, Foundation for Puerto Rico on the Economy P7

>Archive

Banco Popular Foresees Positive 2021 P9

Investing in ecological efforts can lead to revenue gains

W Giovanna Garofalo

Celebrating Mom’s Special Day P14-15

ggarofalo@wjournalpr.com

@giopgarofalo

ith decennial arctic ice drops of 13.1 percent and rising temperatures, per NASA figures, more countries and businesses have deemed it imperative to stop or slow down climate change. While adopting ecologically mindful practices would require spending from the private sector, the actions taken today will have a positive impact on the environment as

well as revenues Jake Kheel, vice president of Grupo Puntacana Foundation and an environmental leader, published last month “Waking the Sleeping Giant: Unlocking the Hidden Power of Business to Save the Planet,” wherein he outlines efficient ways to incorporate sustainable practices and provides examples of success stories, including his company’s own efforts to conserve natural habitats and species.

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a week in review Puerto Rico Awards ICF $46 Million Disaster Recovery Contract

>Courtesy

>Carlos Rivera Giusti

>Josian E. Bruno Gómez, Archive

Puerto Rico’s Public Private Partnership Authority awarded global consulting and digital services provider ICF a new $46 million contract to support long-term disaster recovery from hurricanes Irma and Maria and hazard mitigation efforts to protect against future disasters.

ICF will provide technical assistance services to support the obligation of FEMA disaster recovery funds.

DDEC and Lufthansa Technik Puerto Rico Reach New Deal The Economic Development and Commerce Department (DDEC by its Spanish acronym), announced that Lufthansa Technik Puerto Rico (LTPR) will receive funding support to help with the challenges the aviation industry is facing due to the COVID-19 pandemic. The unspecified amount will support the future of its operations and workforce, which consists of 318 employees. It will also allow LTPR to increase the purchase of goods and locally sourced services.

Powered BY El Vocero de Puerto Rico, 1064 Ave Ponce de León 2nd floor San Juan, PR Postal Address: PO Box 15074, San Juan, PR 00902

President Salvador Hasbún shasbun@elvocero.com Vp of Marketing and Business Operations Michelle Pérez Miperez@elvocero.com

FEMA Awards $7M for Recycling Centers and Municipal Landfills FEMA approved nearly $7 million to repair damage caused by Hurricane Maria at several landfills and recycling centers around the island. Of these funds, $100,700 is earmarked for the Juana Díaz landfill that serves over 50,000 residents. The landfill also serves several neighboring municipalities, businesses and industries in the south. The award includes over $56,000 for the Loíza Municipal Recycling Center.

VP of Accounting Félix A. Rosa frosa@elvocero.com

Human Resources Director Arlene Rolón, PHR arolon@elvocero.com

VP of Editorial Content Juan Miguel Muñiz Guzmán jmuniz@elvocero.com

VP of Production Eligio Dekony edekony@elvocero.com

Traffic Director Ilia M. Pérez Centeno iperez@elvocero.com

Multi-Platform Graphic Director Héctor L. Vázquez hvazquez@elvocero.com

Assistant Editor/ Reporter Rosario Fajardo rfajardo@wjournal.com

Phone: 787-622-2300, 787-721-2300 Customer Service: 787-622-7480

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CONTINUED FROM PAGE 1 According to Kheel, who is based in the Dominican Republic, businesses are, generally speaking, either adversaries to the environment or, “in the best scenario,” allies to environmental efforts and community support. “Most companies are complying; they are keeping themselves at the edge of regulations with that or they are mitigating their impact, or they are contributing to foundations or to public-private projects,” he told THE WEEKLY JOURNAL. “But where we have a lot of growth potential is if they transform themselves into agents of change, where they can really push for sustainability. They can use their resources, creativity and innovation potential to apply them to solutions for different environmental problems.

That is the idea, that companies can go far beyond simply conforming to these trends and actually lead.”

For instance, in addition to recycling or reusing items, companies can identify a new product to replace the current wasteful material, such as using an alternative to single-use plastics. They can also find new business models or methodologies.

One example he highlighted was Desso, a European carpet manufacturing enterprise that creates its products using innovative shredding and cryogenic separation technology. The company realized that when using a singular carpet for an office space or building and one area got damaged over regular transit, the entire carpet had to be removed and replaced, even spaces that are not prone to regular foot traffic. As such, even the unaffected material turned to waste.

For this reason, Desso “developed a carpet sold in section panels. Instead of [selling] the entire carpet, they do a leasing program… When part of the carpet is damaged, they replace it in small sections instead of the entire carpet” and then recycle the affected sections, Kheel explained.

“They changed their business model, they changed the service they offer, they minimized their environmental impact, and they can receive those carpets that are designed to be reused some other way. That is a highly important transformation system,” he added.

Another success story he pointed to is Patagonia, an outdoor clothing and gear company that, in order to reduce waste, uses recycled and organic materials, plus has a program where they receive used materials and provide credits for returns, or they fix them. “The idea is to have a much more thoughtful cycle of all production of their clothes, and they also use a significant percentage of their income to do innovation projects, contribute to conservation initiatives in protected areas, make documentaries to promote certain environmental trends. It is a company that uses its benefits and what it does as a company is producing a positive environmental impact,” Kheel said.

We are not simply spending money because it makes us feel good, we are investing [in the environment] because it will protect us and improve the business.

- Jake Kheel

In his book, Jake Kheel provides real-life examples of businesses that have successfully adopted ecofriendly practices. >Courtesy

the country’s Central Bank—the Grupo Puntacana Foundation has a reef restoration initiative. “We have been making important investments for 15 years in research and carrying out projects for the conservation of coral reefs and in restoring reefs in cases where these are degraded,” Kheel reported.

Apart from the ecological benefits, Kheel highlighted that these investments will rebound positively on the country’s tourism economy, which heavily relies on its natural assets, such as crystal-clear beaches for lounging, scuba diving, snorkeling tours, boating and more. Furthermore, the National Oceanic and Atmospheric Administration (NOAA) explained that coral reefs provide a buffer, protecting coasts from waves, storms and floods. Kheel affirmed that by investing in preserving coral reefs, tourism-related businesses like resorts get the bonus perk of protection from natural disasters.

Reefs are “an asset on which we rely. If we don’t invest in that asset, it will affect our business.

This leads us to think of solutions for what has

Protecting Coral Reefs for Economic Development

The tourism and environmental expert observed that in the Dominican Republic, where tourism revenues represented 36.4 percent of exports of goods and services during 2019 —according to

Jake Kheel, pictured, underscores the importance of preserving coral reefs to bolster tourism and defenses against storms. >Courtesy

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Jake Kheel affirms that Grupo Puntacana Foundation’s initiatives can be replicated in Puerto Rico. >Courtesy

happened to the reef and to do interventions; work with fishermen to minimize the impact of overfishing; work on new technologies to restore the corals, grow them and transplant them to the reefs; see how to finance the jobs,” he stated, adding that because the entity cannot finance the project entirely, it relies on business partnerships and collaborations with environmental organizations, as well as “blue finance” loans. “It is an investment and we have to see it that way.

We are not simply spending money because it makes us feel good, we are investing because it will protect us and improve the business.”

Balancing Nature and Businesses

Moreover, he noted that while golf courses are assets for resorts to attract guests, they “have a very bad reputation for having a negative impact on the environment.” To foster a healthy relationship between business needs and nature, they integrated a system that collects the property’s wastewater and then treats and reuses it to irrigate the golf course, also minimizing the use of fertilizers.

“In addition to that, we have used a species of grass that is native to the Caribbean that has been adapted for use on golf courses, which can resist sea salt and can also use treated water for irrigation. It is a system designed to minimize the impact of the golf course. We use local vegetation; using vegetation that does not require a large number of synthetic products or fertilizers, which

are adapted to temperature and precipitation, and to have the design of the golf course areas that are conducive to wildlife,” Kheel said.

Grupo Puntacana Foundation also partnered with an organization that protects birds to reintroduce the “gavilán de la Hispaniola” (Ridgway’s hawk), an endangered species native to the Hispaniola island, which the Dominican Republic shares with Haiti.

“The resort has functioned as a wildlife refuge and that is something very innovative. Not that it costs a lot of money; our role was not to finance all the work. We basically opened the doors and allowed our space to be used as a refuge and from there, the species has basically recovered.

There are many unexpected roles that can be taken advantage of. New ways of contributing to sustainability can be created that do not affect your business and that has a very important positive impact, and that is not necessarily a traditional role,” he asserted, urging businesses big and small to identify areas of opportunity to develop environmental initiatives.

Along that line, Kheel said that governments don’t always have the mechanisms or political will to implement appropriate measures or laws to protect the environment. Thus, he underscored that the private sector can lead these efforts and be a leader in pushing for change. “Why is that good for companies? It allows them to define the terms of the changes and also gives them a competitive advantage. If you are the first to make

that change… you will benefit in public relations in the image of the brand, and the subject will be advanced,” he stated.

Replicating Models in Puerto Rico

THE WEEKLY JOURNAL asked Kheel if these models can be replicated in Puerto Rico, a fellow Caribbean nation with similar weather conditions and natural assets. “The idea of using examples from the Dominican Republic, a country, an island, a relatively small Latin economy, is that it can be applied in many similar countries. Puerto Rico is a perfect counterpart to us. It is a Latin island and it is a country more or less in the middle of development,” he replied. “Basically everything that has been said about tourism in the book applies perfectly to Puerto Rico and has all the logic in the world.

“One of the examples of efficiency improvements makes perfect sense on an island because much of the raw material is imported and costs more.

So, the more efficient the use of raw materials, the better for the company and for the country. In solid waste, Puerto Rico does not have indefinite land; it has limited land and it does not have unlimited resources. Therefore, it has to have very controlled and very good waste management so as not to contaminate its water sources, coastal areas, rivers, lakes. They are all assets that must be protected, especially on an island because it has limited space.

All those concepts that are spoken in that book apply perfectly to Puerto Rico,” he said.

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LUMA Energy’s Wayne Stensby >Courtesy

Legal Victory for LUMA as June 1 Takeover Nears

‘All-area readiness,’ promises notable customer improvements

S

Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

ignaling yet again that LUMA Energy’s public-private partnership contract with the Puerto Rico Electric Power Authority (PREPA) is here to stay, U.S. District Court Judge Laura Taylor Swain has approved a petition that the contract proceeds as a priority and an administrative expense.

The petition was made by the Puerto Rico government and the Financial Oversight and Management Board.

The approval allows LUMA, which has a PPP contract to operate PREPA’s transmission and distribution (T&D) system, to be compensated as an operator under Title III bankruptcy proceedings, through a supplementary agreement. LUMA will receive $9.5 million a month and will be able to receive reimbursements on expenses and other incentives, as it meets performance metrics to improve electrical service on the island. Prior to the Swain’s ruling, LUMA was receiving a flat fee of $5 million a month.

In October 2020, Swain approved LUMA’s 15-year PPP contract on PREPA’s T&D system. This ruling also allowed for the advance payment of $135 million for the transition process. LUMA is officially scheduled to takeover on June 1, which is also the first day of the annual hurricane season in the Caribbean.

Ready and Raring to Go

Swain’s latest ruling came as LUMA President and CEO Wayne Stensby reaffirmed that the company is

ready to assume operations as planned.

“LUMA is entering the final stretch of the frontend transition period… We are one month away from commencement and prepared on all fronts to deliver on our responsibility to provide Puerto Rico the modern, resilient, reliable and affordable electric power system that customers need and deserve,” said Stensby during a virtual press conference.

In February, LUMA submitted its System Remediation Plan, Initial Budgets and proposed Performance Metrics to the Puerto Rico Energy Bureau (PREB) for approval. During the ensuing period, LUMA teams have been in communication with PREB and complying with additional requests for information as they work through their process, he said.

Stensby also addressed published reports about LUMA’s position on the future of renewable energy in Puerto Rico. He said LUMA’s position and plans to enable renewable energy in Puerto Rico are clearly stated and detailed in the plans submitted to PREB. These plans include stabilizing and restoring the electric grid to transform the system and enable new technologies so customers may access cleaner sources of energy.

“Renewable energy and a restored grid go handin-hand. It’s not one or the other. It actually requires both. By strengthening the grid, LUMA will enable the incorporation of renewable and distributed generation, energy storage technologies, and advanced operation systems, including automation and flexible grid services,” he said.

Stensby reiterated that LUMA continuous to actively recruit personnel to ensure capability to initiate operations on June 1, with particular focus on critical areas as Operations and Customer Service. Nearly 20,000 Puerto Ricans have applied to work with LUMA, but he declined to give specifics on hiring, saying that he “did not want to play the numbers game.”

He reaffirmed that hiring will continue for

several months and that some 3,800 personnel is a general target for the company. Stensby also noted that an estimated $10 billion in federal recovery funds, part of billions awarded to Puerto Rico after Hurricane Maria in Sept. 2017, are now beginning to flow for the electrical system. “This is a very, very substantial number for capital deployment… It will require a large amount of work,” he said.

Improving Customer Service

Another important component of LUMA’s readiness is the development of customer contact channels to be begin upon service commencement, with the aim of improving customer service. Stensby indicated that on day one, LUMA’s Call Center will be fully operational and staffed with trained employees to carry out a new electric customer experience.

On that day, customers will also have access to two brand new digital channels—the MiLUMA web portal and the MiLUMA mobile app—where they will be able to login to review their account, report outages, among other functionalities. Stensby also said that current PREPA Commercial Offices will remain open at all existing locations and rebranded Customer Service Centers.

With regard to preparedness for the upcoming hurricane season, he said that LUMA knows the electric T&D system is extremely fragile and deteriorating, thus its transformation must not be delayed.

“LUMA will be prepared to start delivering on a customer-centric, reliable and resilient energy system that Puerto Ricans deserve upon commencement, a commitment that includes disaster preparedness in the event of a mayor storm or hurricane this upcoming season. In fact, LUMA has emergency response equipment in transit and on island ready to deploy in the event of a disaster,” Stensby said.

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Five Pillars to Transform Puerto Rico’s Economy

DDEC and Foundation for Puerto Rico discuss strategies for economic growth

M Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

anuel Cidre, the designated secretary of the Department of Economic Development and Commerce (DDEC by its Spanish acronym), and Jon Borschow, chairman of Foundation for Puerto Rico (FPR), recently held a virtual forum to discuss economic opportunities for the island.

Cidre observed that although the island is slated to receive roughly $64 billion in federal funds for the next 10 years to improve its infrastructure and foster economic development, there are “many challenges ahead,” such as the nearly 12 percent drop in population in the past decade, as confirmed by U.S. Census Bureau’s 2020 results.

That, he said, “should be a source of inspiration” to work towards a prosperous Puerto Rico with a renewed fiscal and economic performance.

With this in mind, he highlighted five key pillars. The first, he said, is to transform the local business ecosystem by promoting an ambitious entrepreneurial mindset. “Puerto Rican entrepreneurs are not alone in the world; they must see the world as their final client and insert themselves precisely in a task of being number one if they are a local supplier, but… aspire tomorrow that those companies that today operate in Puerto Rico can think about expanding, and for that local management on the hand of strong local capital to be able to acquire and operate them as Puerto Rican businesses, adding wealth to the country,” he asserted, adding that he sees federal funding as a tool to “transform and create internal wealth.”

Another issue is attracting and retaining U.S. and foreign businesses, stating that he diverges from categorizing American enterprises as foreign entities, in contrast to the federal government.

Borschow underscored that reshoring American manufacturing companies from Asia is “one of the few things in which there is consensus in Washington, D.C.” and that Puerto Rico’s geographic position and relation to the U.S.

Puerto Rico is positioned as a very viable alternative [for reshoring manufacturing], even above many states in the nation.

- DDEC Chief Manuel Cidre

DDEC Chief Manuel Cidre underscored the need to improve the ease of doing business on the island. >Josian E. Bruno Gómez/Archive

mainland gives it a unique advantage over its competitors.

Along this line, Cidre urged seeing reshoring beyond attracting biopharmaceuticals. “Recently, General Motors in Detroit had to reduce its production capacity due to the lack of microchips, microchips that are made 100 percent in China. So, reshoring includes elements that have never been seen before, such as microchips,” he said. “Puerto Rico is positioned as a very viable alternative, even above many states in the nation.”

Moreover, he said that Puerto Rico cannot rely on being a low-tax jurisdiction because “anybody can replicate that effort.” Instead, the official said that Puerto Rico needs to provide incentives focused on “the economic reality at hand,” plus improve its permitting process and the ease of doing business on the island, a recurring complaint in the private sector. “Yes, we want to be a low-cost jurisdiction, but we also want to be an agile country, a country of respect, an educated country, a safe country. The economic development umbrella goes far beyond simply bringing jobs or giving tax incentives,” he affirmed.

The fourth pillar Cidre discussed is using funds from the Workforce Innovation and Opportunity Act (WIOA) to transform the human resources base for existing and future businesses. In March, the secretary-designate announced $4 million in WIOA funds for employers, in addition to the more than $7.1 million approved a year prior under the same law to avoid layoffs, and $65 million under the Coronavirus Relief Fund, as indicated by Gov. Pedro Pierluisi.

Lastly, Cidre pointed to House Resolution 1740, presented by Rep. Jenniffer González (R-PR) in the U.S. Congress, which seeks to designate all of Puerto Rico as an Opportunity Zone (OZ). To date, roughly 96 percent of the island is a certified OZ, or economically distressed communities, which allows for tax benefits and incentives for companies and investors to develop projects in these zones.

“And Jenniffer González’s project falls along that line to attract small and medium-sized American businesses that could establish themselves in that low-income and economically depressed area to attract and create jobs in those specific areas,” he said.

However, due to the ongoing coronavirus pandemic, the development of Opportunity Zones has been delayed, not just in Puerto Rico, but across the nation.

Continue reading at www.theweeklyjournal.com.

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>Archive

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Ecotourism En Vogue

W Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

hether it’s touring local farms and coffee plantations, or walking around the many nature reserves that Puerto Rico has to offer, there is no doubt that ecotourism is

en vogue these days.

The popularity of ecotourism and a subset, agritourism, has risen in the past year due in large part to the coronavirus pandemic. For health and safety reasons, enjoying the great outdoors has surged as the pandemic continues in its second year.

Environmental protection is therefore a must, as it allows people to enjoy nature, while contributing to their well-being and also indirectly promotes small businesses in the ecotourism industry. This positive cascade effect is how Federal Disaster Recovery Coordinator for Puerto Rico, José Baquero Tirado, described the recent $6.2 million obligation to the Department of Natural and Environmental Resources (DNER) and the municipalities of Villalba and Aibonito for recreational projects that support the environment.

The award from FEMA includes over $5.1 million for repairs at the Punta Santiago Vacation Center in Humacao, one of the most important ecotourism destinations in the eastern part of the island. The facility is located near Balneario Punta Santiago and the Efraín Archilla Humacao Nature Reserve, a 3,186-acre recreational park and a refuge for

wildlife such as the leatherback sea turtle, brown pelican and Puerto Rican boa.

Humacao Mayor Reinaldo Vargas said the opening of this vacation center will have a positive impact on businesses in Punta Santiago because of its tourism appeal. The monthly occupancy at the center was around 600 people, before the pandemic, and the DNER estimates that the economic loss after its closure is approximately $2.2 million.

“Sales will benefit, as well as the possible opening of new businesses and jobs. Bordering the Punta Santiago area is the Efraín Archilla Nature

>Archive

FEMA Awards Over $6.2 Million for Ecotourism Facilities

Reserve, which has several micro-businesses dedicated to recreation. These are local businesses dedicated to equipment rental, so they would directly benefit from the flow of visitors and tourists arriving to the area,” the mayor added.

Towards the central region of the island, another ecological recreation space that was approved over $420,800 in federal funding for repairs is the La Piedra Degetau observation deck, or “mirador,” as it is known in Spanish, and passive park in Aibonito. The park has several wooden gazebos set among gardens and an observation post.

Nearby, the municipality of Villalba was obligated over $121,300 to repair the municipality’s observation deck, a passive recreation area located at the top of Puerto Rico’s Central Mountain Range. At an altitude of 3,300 feet above sea level, this “mirador” between Villalba and Orocovis has sports facilities, a children’s play area, gazebos and a lookout point that provides views of the island’s north and south coasts, the North Karst area and Puerto Rico’s geographic center.

“These obligations of funds from FEMA will allow the reconstruction of safe and eco-friendly spaces that will boost the recovery of tourism in various regions of the island. The projects will promote the socioeconomic development of Puerto Rico by fostering the creation of businesses that will result in new job opportunities,” said Manuel A. Laboy Rivera, executive director of the Central Office for Recovery, Reconstruction and Resilience.

As reported by THE WEEKLY JOURNAL, the Puerto Rico Tourism Company (PRTC) is continuing its push to promote agritourism on the island by handing out $5,000 incentives to 25 certified agribusinesses, for a total of $125,000.

“These small and midsize businesses are an integral part of promoting Puerto Rico as a Green Destination, and each one of these businesses has a different and educational [experience], while their products are supporting the growth of the agricultural sector, creating jobs and regional economic development,” said PRTC Executive Director Carlos Mercado.

Among the businesses lauded for their agritourism efforts are Hacienda Cascada; Siempre Verde; Península Del Río; Quesos Vaca Negra; Café Nativo; Hacienda Lealtad; Frutos del Guacabo; Destilería Coquí; HidrOrgánica; and San Juan Artisan Destillers. Many of these businesses are dedicated to the production of fruits and vegetables, fruit trees and coffee, as well as dairy products, artisanal liqueurs, raising farm animals and establishing fish farms.

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Popular Enters $350M Accelerated Share Repurchase Agreement Comes after reporting Q1 2021 financial results

P Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

opular Inc. has announced that it has entered into an accelerated share repurchase (ASR) agreement to repurchase an aggregate of $350 million of Popular’s common stock. Popular previously has previously disclosed its plan to repurchase up to $350 million of its common stock as part of its planned capital actions for 2021.

Under the terms of the ASR agreement, Popular will make an initial payment of $350 million and receive an initial delivery of 3,785,831 shares of its common stock.

The gist is that Popular is buying its own shares. Thus, Popular feels that its cash position is sufficiently strong so that it would buy shares currently outstanding. The benefit for shareholders that do not sell is that future profits would be divided among fewer shareholders, thus each one would get more than in the past.

The news came as Banco Popular, Puerto Rico’s main bank, announced first quarter (Q1) 2021 results, continuing with a solid earnings report.

“We began the year with a very strong quarter achieving net income of $263 million…. [E]arlier this month, we announced a series of planned capital actions that we intend to execute this year.

These actions include a 12.5 percent increase in the company’s quarterly common stock dividend from $0.40 to $0.45 per share and a common stock repurchase program of up to $350 million.

“These actions evidence the strength of our capital position, which allows us to return capital to our shareholders, while we continue to invest in our franchise and serve the needs of our customers,” explained Popular President and CEO Ignacio Álvarez during the earnings call.

The bank’s current net income of $263 million was $86 million higher than the fourth quarter, he reported. “These results were $228 million higher than the same quarter last year. Both quarters were impacted, albeit in opposite direction due to changes in economic forecasts due to the pandemic and its impact on the season. First quarter results were primarily driven by an $82 million benefit in the provision for credit losses as well as higher revenues. The increase in net interest income was driven by higher PPP related fees, an increase in our investment portfolio and lower deposit costs.

A Banco Popular branch in Isabela >Courtesy

Banco Popular’s Ignacio Álvarez >Carlos Rivera Giusti

“Our results reflect the ongoing rebound in economic activity experienced over the past few quarters, in large part due to the unprecedented level of better stimulus as well as our diversified sources of revenue and prudent risk management,” Álvarez added.

To date, Banco Popular has funded 42,000 Paycheck Protection Program (PPP) loans totaling $1.9 billion in both rounds. Nearly 13,000 loans were originated in Round Two, for $478 million.

Of the loans originated in Round One, nearly $650 million, or 46 percent, have been forgiven as of the end of the first quarter. In Puerto Rico, as of March 31, the bank had funded 62 percent of all PPP loans that have been originated on the island in both programs.

Positive Economic Outlook

In Q1 2021, business trends and customer activity continue to improve, building upon the momentum seen in the second half of 2020 as

many of the restrictions that were in place were gradually loosened, Álvarez indicated.

“Vaccinations in Puerto Rico have progressed along a similar trajectory as in the [U.S.] mainland.

While the number of the cases on the island has increased in recent weeks, COVID-related hospitalizations remain below national levels.

Employment levels had improved but are still lower compared to last year. Total non-farm employment has increased by 2 percent since December 2020, but remains 4 percent below the March 2020 level.

“New auto sales have remained robust with sales of 32,000 units in the first quarter. This is the second highest quarterly level, only exceeded by the prior quarter’s record level. Cement sales increased by 68 percent in the first quarter as compared to the year ago period, which is the highest level since at least 2016,” he said.

Of note is that auto loan originations at Banco Popular have increased by 15 period compared to the year ago period.

The tourism-hospitality sector also continues to improve, as more mainland residents travel to Puerto Rico. “Airport traffic is improving at a rapid pace. While year-to-date arrivals were down 20 percent from the year ago period, arrivals during the month of March were 40 percent higher than the previous year. Hotel demand has also picked up significantly. The current hotel booking rate for the remainder of 2021 is above the booking level at the same time in 2019, which was a record year for tourism in Puerto Rico.

“Within Popular’s clientele, credit and debit card sales in dollars increased by 39 percent compared to last year’s first quarter and has been higher than pre-pandemic levels,” he reported.

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CERIA Launches First Non-alcoholic Craft Beer in PR Offers Belgian-style and IPA options for beer lovers

C Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

ERIA Brewing, co-founded in 2018 by former Blue Moon brewmaster Keith Villa, launched the first nonalcoholic (NA) craft beer in Puerto Rico, making the island the 18th U.S. jurisdiction to sell this novel product.

The addition of this offer in the local market comes at a time when interest in NA beverages is on the rise. A Jan. 2021 report published by Global Market Insights revealed that non-alcoholic beer demand from restaurant sales channels surpassed $4 billion in 2019, while the beer market revenue is anticipated to cross $29 billion by 2026 with a consumption of over 3 billion liters worldwide.

As reported by THE WEEKLY JOURNAL, March was a banner month for alcohol sales on the island, with distributors reporting double-digit sales across all main categories. According to the most recent data from the Puerto Rico Treasury Department (Hacienda), between July and Dec. 2020, collections from the sale of alcoholic beverages increased by 20 percent, from $113.9 million in 2019, to $137 million in 2020. Since the availability of NA beer is quite new to the island, no sales figures are available.

Currently, there are two Ceria options for beer lovers. Grainwave NA is a medium-bodied, Belgian-Style White Ale, containing only 77 calories, which is brewed with blood orange peel and coriander. It is then dealcoholized to 0.00 percent alcohol by volume (ABV), thus eliminating all alcohol. Meanwhile, Indiewave NA, at 99 calories, is a flavorful West Coast-style India Pale Ale (IPA) that balances Cascade, Citra, and Amarillo hops with light caramel malts for a smooth citrusy character, and is also dealcoholized to 0.00 percent ABV. “As the interest and popularity of NA Beers have increased in the U.S. market, we wanted to partner with a

drunk and you just want to cool great startup company and a welloff, it is a good option. You have respected veteran of the craft beer to educate people to see the real movement,” said José R. Maldonado product that is,” he stated. “A Rodríguez, Craft Beer Portfolio non-alcoholic craft brewery had Brand Manager of Ballester Non-alcoholic never come to Puerto Rico and Hermanos, the local distributor for beer is the fastestcraft breweries are characterized Ceria. growing segment by having the most details when Speaking with THE WEEKLY of the global beer producing beer, compared to JOURNAL, Maldonado explained market, according other commercial breweries.” that Ballester Hermanos has to former Blue Moon Maldonado added that these been distributing Ceria’s NA beers brewmaster Keith products are a suitable option islandwide since the first week of Villa. for designated drivers, beer April to roughly 1,000 accounts with lovers who simply want to do the company. These include stores tasting sessions —akin to wine like Supermax and The House, as enthusiasts—, and even pregnant well as gas stations and bars like women who enjoy the smooth taste of an IPA or Taverna Lúpulo in San Juan.

Belgian-style beer without affecting their health.

“When we have done tasting sessions for the beer, we have had all kinds of feedback. They “There are no restrictions where or when it can be all say the same thing; the constant is that it is a consumed. It’s the anytime, anywhere beverage – on tremendous product. Others say that when they go the golf course or tennis court, or while biking, hiking, to drink beer they want to get inebriated. And there fishing or performing numerous other activities are others who say that it is a good option, that if where one needs to maintain their edge while you want to have a beer but you don’t want to get enjoying a great tasting beverage,” Villa said.

In fact,

Health and Wellness Trends Fuel NA Beer Growth

For his part, Villa affirmed that NA beer is the fastest-growing segment of the global beer market. In the U.S., NA beer represents an approximately $728 million market, and at a compound annual growth rate (CAGR) of 38 percent, it is growing faster annually than the global rate, according to IRI and CraftBrewingBusiness.com.

“Interest in better health and wellness, active lifestyles and a reduction in alcohol consumption is fueling the NA trend. Beer drinkers realize an NA such as Grainwave or Indiewave offers the great taste of beer without any downside, especially during the pandemic when health and wellness continue to be top of mind,” he affirmed.

-Journalist Rosario Fajardo contributed to this report.

CERIA NA beers are available islandwide through Ballester Hermano’s clients. >Courtesy

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< The Weekly Journal > Wednesday, May 5, 2021

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/ Wednesday, May 5, 2021

Omar J. Marrero

Eduardo Padial

Executive Director of the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF)

T

Success Using CARES Act Funding

he recent fiscal plans of the government of Puerto Rico, as well as those of the Oversight Board, focus on the importance of federal funds in the performance of Puerto Rico’s economy over the next decade. Meanwhile, the Office of the U.S. Inspector General found that the Trump administration unnecessarily delayed the flow of reconstruction funds after Hurricane Maria.

When there is good faith in Washington D.C., the government of Puerto Rico does its part by executing. A recent example is the $2.2 billion of the Coronavirus Relief Fund (CRF), part of the CARES Act. Contrary to other instances in which Puerto Rico has failed to spend assigned money, this time the total sum of assigned money will be spent. The CRF was assigned to 756 entities throughout the U.S. and its territories. In December 2020, Puerto Rico was in the top 25% of entities that had spent a greater percentage of the assigned funds.

CRF funding has been disbursed efficiently. Instead of creating bureaucratic organizations, the government used United Way to channel funds to nonprofits. In addition, the Puerto Rico Treasury Department’s SURI system was used to avoid asking beneficiaries to provide information that the government already had and to reduce physical contact during the pandemic.

We worked with the municipalities to advance them the money that they needed to implement the contact tracing system. The alternative, a reimbursement-based system, would have delayed contact

tracing systems and cost lives.

One of the successes of the government of Puerto Rico has to do with keeping hospitals operating. Hospitals are receiving COVID-19 patients, an illness that costs more to treat than what medical insurance companies pay. At the same time, they are receiving fewer visits to the emergency rooms and performing fewer elective surgeries.

Before the pandemic, hospitals in Puerto Rico were in a vulnerable situation, worse than that of hospitals in the U.S. The profit margin of hospitals in Puerto Rico was negative 2.8%, while in the U.S. it was positive 1.6%. To make matters worse, the formula used to assign federal funding to hospitals during the pandemic (Provider Relief Fund) offered very little to hospitals on the island.

However, the government of Puerto Rico prioritized hospitals in the distribution of the CRF. In order to distribute money promptly, but wisely, a program was developed to distribute it based on the number of beds per hospital. While the U.S. has seen many hospitals shutting down in the middle of the pandemic, hospitals in Puerto Rico have survived and are being able to treat the recent peak of COVID-19 cases. This effort could not have been possible without the close collaboration and coordination between Treasury, the Office of Management and Budget, and AAFAF. The government of Puerto Rico has not been issued a single finding by the U.S. Treasury with respect to the CRF management.

Success has been of such magnitude that the management of the CRF has become the finest letter of introduction of the government of Puerto Rico when requesting additional funds to the federal government.

Operations Director at parallel18

I

Accelerators: The Key to Develop Founders

like to stay up to date with the latest developments in accelerators and entrepreneurship around the world. That is why I’m active in the Google for Startups network and why I recently sat with the P18Team to look at the yearly report presented by the Global Accelerator Network (GAN) about the status of the accelerators on their network.

That exercise and the conversations with my team during the presentation got me thinking about the importance of accelerators, especially when we’ll see many incubators, pre-accelerators and accelerators come to life after the CDBG funds were awarded for those purposes. So, let’s go over what accelerators provide and the key role they play in the entrepreneurial ecosystem: • Funding: Many accelerators provide the early-stage capital that startups need to test their go-tomarket strategies or take their companies to the next level. They can use this capital to hire employees, increase marketing spending or even product development.

• Mentorship: Mentors, along with the accelerator program, should guide founders to learn and recognize the unknowns for a successful startup. Once a founder identifies what they need to learn or go through, the accelerator can provide the proper experts.

• Community: Being in contact with other humans who are going through the same thing is one of the most important things accelerators provide.

Contact with founders from all over the world, in the case of international accelerators, or from the same country, amplifies a founder‘s point of view and brings them to people they can relate to and be vulnerable with.

• Business connections: Having a corporate deal or partnership in the journey of a startup, especially for B2B companies, is crucial to attain more clients or better investment deals. Accelerators help filter those connections and prepare founders

for each pitch to make sure they put their best foot forward.

• Investment opportunities: A big hurdle for founders is knowing when to raise money and how much. When a startup decides to raise a round of funding after graduating from a program, accelerators can play a major part in providing a curated network of investors, whether they’re angels or venture capitalists.

• Accountability: Incubators, pre-accelerators and accelerators ask their participants to commit to their programs fully. This accountability changes per program; while some have specific dashboards with goals to comply with per week, others have customer discovery assignments and weekly presentations. However the format, the goal is to give founders a structure to track and validate their actions.

The final goal of what accelerators offer is to promote startup growth.

In Puerto Rico, community builders like our parent organization, the Puerto Rico Science, Technology, and Research Trust, and its programs parallel18 and Colmena66; Grupo Guayacán, Centro para Emprendedores, INprende, Startup. pr, Bravo Family Foundation, and StartupLab, among many others, play a fundamental role in the future of our island’s economic development strategies.

Why? Incubators, pre-accelerators and accelerators promote innovation; they help de-risk ventures, making them much healthier and attractive for investors. These programs give founders the education, connections and financing they need to keep their endeavors afloat and allow them to grow. And, in the case of Puerto Rico specifically, growth goes beyond sales. It includes expanding their teams by providing quality jobs to reduce the brain drain; it means exporting their goods and services; and it means creating the foundation for a new way of promoting economic development with a sense of pride that we all need.

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/ Wednesday, May 5, 2021

Report: Puerto Nuevo River Basin Project Detrimental to the Environment Landscape architect proposes sustainable solutions and alternatives

A Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

n ongoing project to revitalize the Río Puerto Nuevo Basin in San Juan does not take into account social and environmental issues needed to solve the problem of flooding in adjacent communities, warned Edmundo Colón Izquierdo, a landscape architect.

In a virtual chat organized by the Association of Architects and Landscape Architects of Puerto Rico (CAAPPR by its Spanish initials), Colón denounced what he deemed to be “gaps” in the restoration project, which could result in detrimental effects on San Juan residents, as well as the natural landscape.

The U.S. Army Corps of Engineers (USACE) is currently in the process of addressing damages to the basin sustained by Hurricanes Irma and Maria in 2017, with its entire funding allocated through the Bipartisan Budget Act of 2018. The basin itself drains 24 square miles, 75 percent of which is highly developed with a population of 250,000 people, the entity disclosed.

“Rapid upstream runoff, inadequate channel capacity, constriction at bridges, and elimination of the floodplain by urbanization cause severe flooding to 7,500 residents, and 700 commercial and public structures valued at over $3 billion. The project includes six discrete project segments that will be constructed through separate contracts between now and 2032,” the project reads.

Colón affirmed that this government initiative, known as the Río Puerto Nuevo Flood Damage Reduction Project, intends to eliminate surrounding vegetation and add cement canals, leading to higher city temperatures while destroying the natural habitat. “Pipelines like these can create a false sense of security among the communities around them. High-speed canals that ‘clean themselves,’ as well as reduced vegetation cover, have the potential to move more sediment and pollutants, plus carry higher temperature waters to the San Juan Bay Estuary, which could negatively affect it,” he explained.

He added that “we are not very clear if [the USACE] considered the vulnerability due to climate change, the effects of heat. We know that it has irreversible ecological impacts, we understand that it will create more pollution than it will help to

Landscape architect Edmundo Colón recommends integrating the community and innovative technologies to preserve the river’s natural habitat. >Courtesy of the CAAPPR

solve, that there are environmental justice issues and water justice issues, and we know there are going to be maintenance issues. The basis of the canal design is unclear.”

His counteroffer to the project contemplates a hybrid model of gray (cement) and green (plants) infrastructures, the development of a recreational area that can also serve as “social infrastructure,” and the integration of other services apart from flood damage control.

Issues and Solutions

In the report, Colón outlined eight key issues that need to be taken into consideration to respond efficiently and responsibly: maintenance, flooding, irreversible ecological impact, contamination, heat in urban spaces, vulnerability to climate change, environmental justice and water justice.

Some solutions to address these concerns include supporting ecotourism industries along the river; providing maintenance based on natural processes; preserving and strengthening corridors between ecological patches; adding shade infrastructures; minimizing the cutting down of shade trees; implementing passive remediation in contaminated areas; installing educational art along the river; removing access barriers to the river; implementing bioswales; creating spaces for community involvement in the river’s management and supporting community stewardship; adding

percolation areas to aquifers; and increasing the number of trees.

Other solutions are to implement “smart technologies” to monitor the water remotely and connect communities; minimize the river’s impact on other ecosystems and infrastructures; reduce the footprint of gray infrastructure; create new habitat spaces; minimize erosion by revegetating the riparian zone; stabilize the riverside with structures; provide formal access between the communities and the river; expand certification as a ‘Citizen Scientist,’ and provide regular maintenance to gray infrastructure.

Colón’s report, titled ‘The River is Alive… and Nobody Knows,’ was based on a multisectoral study that included input from residents in these targeted communities, the latter of which include the Puerto Nuevo, Luis Muñoz Marín, Villa Nevares, and University Gardens neighborhoods, as well as the North Botanical Garden.

“Through academia, personal efforts to approach different levels of government, institutions and local and foreign colleagues, the Association of Architects and Landscape Architects —in short, whoever wants to listen—I gave myself the task of advocating that the reconstruction processes, particularly in terms of infrastructure and planning, will include multifunctional infrastructure, cross-disciplinary collaborations, and better integration of nature and ecosystemic services,” Colón affirmed.

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/ Wednesday, May 5, 2021

Celebrate Mother’s Day With an Explosion of Love and Flavor San Juan restaurants offer culinary specials for the special occasion

G

The Weekly Journal Staff

iven the challenges wrought by the COVID-19 pandemic this past year, cherishing your loved ones and celebrating life has taken on new meaning.

With Mother’s Day rolling around this Sunday, many would like to take some time to embrace family in a safe environment. For this reason, various distinguished resorts in San Juan have developed unique and delicious brunch specials, so that, despite yet another atypical year, mothers can still shine on their day while enjoying culinary delights.

Below are some offers available for this Sunday, May 9.

onions; melon and goat cheese salad with arugula and chocolate balsamic vinaigrette; banana soup with pork rinds and toasted garlic oil; or pickled octopus with plantains and avocado as appetizers.

For the main course, options to choose from are Baileys French Toast with mixed berries and honey caramelized almonds; steak and eggs with perch fillet, fresh eggs and mamposteao rice; Chilean sea bass with zetas porcini risotto and champagne foam; lobster pot pie in a fennel cream sauce with peas and spinach; truffle mac and cheese with a sunny-side-up egg; avocado toast on sourdough bread with poached eggs; pork and yucca hash

Condado Ocean Club

The Condado Ocean Club hotel will celebrate the festivity with two succulent brunch alternatives in its SOCIAL restaurant and the Ocean room.

At SOCIAL, guests can choose between lime and tequila ceviche with fresh shrimp, jalapeños and

Condado Beach Club’s SOCIAL will offer its Mother’s Day menu from 11 a.m. to 5 p.m. on Sunday

in cilantro mojo with hass avocado and fried egg; or brownie waffles with mascarpone and dulce de leche mousse, Ron del Barrilito caramel and fresh berries. To top it off, the dessert options are strawberry shortcake; coconut créme brule or chocolate crunch.

This menu will be offered from 11:00 a.m. to 5:00 p.m., costing $58 per adult and $28 for children up to 12 years old. Unlimited mimosas may be added at $24 per person. Reservations are made through Open Table at https://www. opentable.com/r/social-san-juan.

Meanwhile, the Ocean room will host its Mother’s Day Buffet Brunch, with seaside views through its lavish bay windows. There will be two shifts at the table, scheduled from 11:00 a.m. to 1:00 p.m., and from 1:30 p.m. to 3:30 p.m.

The four-station buffet was designed by Chef de Cuisine Ramón Cruz, starting with a cold station featuring homemade granola and organic yogurt, herbs, nuts, vegetables, cold cuts, fruits, cheese and more. The second station features a variety of sandwiches, while the third station will include roasted tomato soup; mini chocolate pancake with crushed cookies; French banana toast with rum and caramel; Pork loin in reduction of tamarind and Ron del Barrilito and minced hazelnut; crispy snapper in garlic cream, and more.

Lastly, the fourth station will include desserts.

This dining option costs $70 per adult and $34 per child 12 and under, with the same option for

/ Wednesday, May 5, 2021

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unlimited mimosas as SOCIAL. Reservations are made through events@condadooc.com.

La Concha Resort

La Concha Resort’s Mother’s Day Brunch will be at The Loft Beachfront Restaurant, with its pleasant views of the sea and the pool, from 10:00 a.m. to 3:00 p.m.

The menu will include continental stations serving individual plates of yogurt parfaits with homemade granola and fruit salad; varied pastry; table of sausages, cheeses, jams, marinated and toasted olives; and variety of small desserts like cheesecake with peanut butter and chocolate; lemon flan with blueberry jam; banana bread pudding and coconut flan with meringue.

The salad station will feature local panzanella with heirloom tomatoes, “queso del país” and cornbread; seafood salad with soursop vinaigrette; watercress with avocado, mango, quinoa and coriander dressing.

For the main dish, Mom and her companions can select between stewed chicken with risotto on horseback and a crunchy plantain; NY Steak with paprika-roasted fingerling potatoes, sunny side and green sauce; avocado toast on “criollo” bread with feta cheese, baby heirloom tomatoes, micro basil and balsamic; Spanish omelette with Yukon potatoes, yellow onion, Manchego sauce and arugula; and guava-cheese cheesecake pancakes with candied almonds.

La Concha Resort also presents four exquisite and refreshing cocktails prepared with Moët champagne: Moët Ruby Red Cooler made with lemon and grapefruit juices, carbonated water, simple syrup, Campari, basil leaves and Moët Ice; Moët Mint 75 with lemon juice, simple syrup, vodka, raspberries, mint leaves and Moët Ice; Moët Al Fresco Spritz with Moët & Chandon Ice Imperial, elderflower liqueur, lime and pieces of fresh watermelon; and Moët Melon on the rocks with fresh lime and watermelon juices, tequila and mint leaves.

The Mother’s Day Brunch has a cost of $60.00 for adults and $32.00 for children under 12 and

The Condado Vanderbilt is preparing a buffetstyle brunch for Moms and their families.

includes parking. The maximum accommodation is six people per table; spaces are limited.

Reservations are made through the Open Table platform at https://www.opentable.com/r/the-loftbeach-front-san-juan.

Condado Vanderbilt

The Condado Vanderbilt’s culinary team designed a special menu for their buffet-style brunch that will be served in the Patio del Fauno Room, which begins with a raw bar station that includes a shrimp cocktail; East Coast oysters with spicy cucumber mignonette; octopus and conch salad; and red snapper ceviche with coconut. Then, guests will find a station of cheese and sausages with salmon and a variety of cured hams, olives, mustards, local fruit jams and artisan breads.

The salad station includes local watermelon salad and goat cheese; local fruit salad; arugula, parmesan and local spider salad; local bok choy, creamy sesame dressing, Asian pear and candied cashew nuts; and grilled asparagus with pickled red onions. Meanwhile, the hot plate station will serve butternut squash and celery soup; pork

The 1919 Restaurant at the Condado Vanderbilt will feature lunch options to celebrate Mom on her special day. >All photos are courtesy

loin glazed with molasses with pickled raisins; and truffled mac-n-cheese with gouda cheese.

The carving station will feature roasted turkey with gravy and simmered salmon with cilantro chimichurri.

In another station, food will be prepared at the moment and there, guests can design their own omelette or fried egg with a variety of ingredients, or they can opt for gnocchi with their preferred sauce. A dessert station will also be available.

Diners will be able to choose between one of three shifts at the table for brunch; 11:00 a.m., 1:00 p.m. or 3:00 p.m. Reservations are made through the OpenTable app at www.opentable. com/r/oceanfront-mothers-day-brunch-atcondado-vanderbilt-san-juan. The cost is $89.00 for adults and $39.00 for children.

For mothers who prefer lunch, the 1919 restaurant will be presenting a four-course, fixedprice menu special for this day. The first course includes cold lobster salad with summer peas, sweet peas, bacon, mint, pickled sweet pepper, pecorino, parmesan with lemon, white balsamic and extra virgin olive oil; local aubergine salad with cold green curry broth, yogurt, organic grain dukka, crunchy kale and herb salad, coriander and Thai basil; and striped sea-bass tartare with Osetra caviar, apple, radish, shiso, extra virgin olive oil and crispy rice.

There are three alternatives to choose from for the second course: Aquarrello Risotto risi-bisi with sweet peas, fabas, bacon, red gravel Parmesan and crescenza cheese; scallop with clam chowder and wild leeks; and gnocchetti pasta with local pork ragout, organic tomatoes, Parmesan, pickled ash, and cetarese pesto.

For the main dishes, diners can choose Prime NY with braised rib ravioli, chard and taggiasca olives; “Surf and Turf” with boneless veal cutlet, wild shrimp, fennel pollen, organic barley, morels, mascarpone and grilled asparagus; or local cartucho fish with organic tomato, saffron, clams and Thai basil.

Finishing off with a sweet touch, the available desserts will be Eaton Mess with crushed meringue, milk and butter cake, seasonal fruit compote, lemon ice cream and pink champagne jelly; Mango galette with puff pastry, almond cream, vanilla and caramel ice cream; or chocolate ganache tart, salted caramel, croissant ice cream and crunchy puff pastry.

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