The Weekly Journal - Wednesday, July 7, 2021

Puerto Rico and the Caribbean

www.theweeklyjournal.com

>Archive

Wednesday, July 7-13, 2021 - // no. 115

LUMA Highlights Priorities P6 Cost of Living High in San Juan P7 FOMB Certifies Gov’t Budget P8

>Josian E. Bruno Gómez/Archive

Cooperatives Key Players in

Puerto Rico’s Reconstruction Officials highlight opportunities

T Giovanna Garofalo

Puerto Rico Picked to Host Miss World P13

ggarofalo@wjournalr.com

@giopgarofalo

he government of Puerto Rico underscored the role of cooperatives, or co-ops, in streamlining the island’s recovery and resilience, and highlighted opportunities to access hefty sums through federal funds.

Last week, key industry members of the public and co-op sectors gathered in the San Juan premises of the Public Corporation for the Supervision and Insurance of Cooperatives of Puerto Rico (COSSEC

by its Spanish acronym) to discuss reconstruction projects nearly four years after hurricanes Irma and Maria devastated the island.

Presently, Puerto Rico has access to roughly $10 billion obligated by the federal government in the form of the Community Development Block Grant for Disaster Relief program (CDBG-DR), with $8.3 billion pending, or an additional 41 percent.

“The mitigation funds are for issues of resilience, a better Puerto Rico, and are not necessarily tied to hurricanes, but can be used for other emergencies GO TO PAGE 4

The Weekly Journal > Wednesday, July 7, 2021 >

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/ Wednesday, July 7, 2021

a week in review Pierluisi Nixes Executive Orders on COVID-19 Over a year into the COVID-19 pandemic, Gov. Pedro Pierluisi, right, informed that he would no longer issue executive orders restricting civilian or commercial activities, citing that “statistics and data reflect that we are getting closer and closer to the end of this pandemic.” As a result, businesses can now operate with no occupancy limits, vaccinated citizens don’t have to wear masks, and establishments that had been severely hindered can gradually recover from the economic burden caused by the pandemic. Health Secretary Carlos Mellado, left, is tasked with implementing any measures deemed necessary to curb the virus.

San Juan to Host Maiden Voyage for Ritz-Carlton Yacht

P3 for Road Management in the Pipeline

The Ritz-Carlton announced that will be making the maiden voyage of its luxury yacht brand Ritz-Carlton Yacht Collection from the port of San Juan next Nov. 10, 2021. The Evrima will make San Juan its homeport in several of its travel itineraries through the Caribbean region and Central and South America, with multiple itineraries scheduled from 2021 to 2023.

The combination of these is expected to contribute $655,869.44 to the local economy.

Edwin González, president of the Highways and Transportation Authority, said that the Public-Private Partnership Authority (P3A) is evaluating a possible agreement for a private entity to manage the PR52, PR-53, PR-56, and PR-20 roads, as required by the Financial Oversight and Management Board. As informed, the P3A is in the process of hiring a firm to conduct a desirability study to determine whether to make a call for interested parties.

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Fundador Rosario, president of Electricoop, said that the co-op model was vital for him and his associates to participate in the recovery process. >Courtesy

CONTINUED FROM PAGE 1 and to improve the infrastructure of Puerto Rico,” said Housing Secretary William Rodríguez Rodríguez.

In terms of reconstruction, the secretary noted that co-ops can assist the agency by becoming subcontractors to enhance the Home Repair, Reconstruction, or Relocation Program (R3). With 20,000 R3 projects in the pipeline, Rodríguez motioned to the co-op leaders present in the meeting and stated that “we need a lot of manpower for these jobs as we now finally have access, so we will be allocating the necessary funds.”

“All those who are in the reconstruction sector or related to the reconstruction sector, there are multiple opportunities and we want to be facilitators through the [Cooperative Development] commissioner so that you receive first-hand information about everything, not necessarily

about the processes that we will be running, but our subcontractors will be running, such as municipalities,” Rodríguez said, adding that $1 billion have been identified for municipal projects, with more funding to come, “so it is very important that we count on you in this initiative.”

Likewise, Manuel A. Laboy Rivera —the executive director of the Central Office of Recovery, Reconstruction and Resilience (COR3)— underscored that the agency’s strategic goals include: accelerating disbursements, advancing proposals, finishing project formulations, achieving goals with the Federal Emergency Management Agency (FEMA) to seal projects, working with an organization that has the resources to accelerate rebuilding, decentralizing data, and actively working with each sub-recipient, for which co-ops would be useful allies.

For instance, Rodríguez highlighted that the cooperative movement has been a crucial help in advancing the Buyer’s Assistance Program, of

which co-ops comprise 40 percent. “And not only do they occupy 40%, but they have become our right hand in the orientation and outreach process.

I would tell you that almost 100% of the cases do not make mistakes, there are no signs that can be raised in the process of presenting the cases. This is an example of how the cooperative movement can join our program in an extremely efficient way and they have always said present, unlike other sectors of the financial area, which have presented a little more slowness or opposition in the process.

Cooperatives have always been present and have contributed significantly to our programs.”

As an example of the benefits co-ops can reap from inserting themselves into the multiple programs available, the secretary pointed to Sagrada Familia Cooperative, Camuy Coop, and the Jesús Obrero credit union, which received over $2 million in federal funds for projects concerning resilience, renewable energy, and financing for small and medium-sized enterprises, among other

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causes. “Cooperatives have said ‘present’ and have received, as in this case, $2.2 million to accelerate business incubators in Puerto Rico,” Rodríguez affirmed.

Moreover, Fundador Rosario —president of the Cooperative of Professionals of the Electrical Industry of Puerto Rico and the Caribbean (Electricoop)— stressed that the co-op model was vital for him and his associates to participate in the island’s recovery process. “In the cooperative model, we found the tools we needed to insert ourselves in this reconstruction process… What we want in this part of cooperativism is to shake hands and be able to insert ourselves. I see a great opportunity for good incentives,” he noted.

Cooperatives have always been present and have contributed significantly to our programs.

- Housing Secretary William Rodríguez Rodríguez

Co-ops like Electricoop can also benefit from the $1.9 billion aimed at improving the island’s electric grid and bolstering energy resilience for communities through the integration of renewable energy. “In the past week, the federal government rules were lowered. Now, we are working with an action plan that is going to provide a significant amount to strengthen Puerto Rico’s electric power system, mainly aimed at creating renewable energy sources that do not use fossil fuel and making an important collaborator in COR3 on the subject of matching funds,” Rodríguez stated. “This is going to be a great engine to help Puerto Rico rebuild its electrical system.”

For her part, Mabel Jiménez Miranda, interim executive president at COSSEC, said that “we want cooperatives to be included in the rebuilding of Puerto Rico. Cooperatives have proven to be resilient and we have this alternative, which is cooperatives, to modernize Puerto Rico forwards.

Our role is more regulatory, but we are available to help you, to guide you and if you need any service from the corporation, we are at the best disposal.”

areas of financial inclusion and community development in Puerto Rico. This million-dollar investment seeks to strengthen the sector’s capacity to continue serving communities marginalized by the traditional financial system.

The awarded cooperatives will be able to use the funds to increase their lending activity, launch new products and services, acquire new technologies, and continue to support the economic revitalization of the communities in which they operate,” said Pablo DeFilippi, executive vice president of affiliation and institutional relations at Inclusiv, formerly known as the National Federation of Credit Unions for Community Development.

He added that ever since Inclusiv began promoting the CDFI model in Puerto Rico, “we have seen that credit unions have responded with great enthusiasm, as this model is very much aligned with the traditional role that these institutions have played in Puerto Rico. At this time, 32 savings and credit cooperatives already have CDFI accreditation and another 20 are in process. Very soon Puerto Rico will have one of the highest concentrations of CDFIs in the United States.”

Villalba Bets on Co-Op Movement

The mayor of Villalba, Luis J. Hernández Ortiz, recently convened with members of Electricoop as part of the effort to generate local alternatives to work with the electrical system in the power distribution lines and present them to the municipalities of Puerto Rico and LUMA Energy, the company in charge of the island’s electric energy transmission and distribution. “Specifically, this cooperative entity seeks to be a realistic and effective option before the brigades that are arriving from other places and that do not know the reality of the Puerto Rico electrical system.

Many of the members of Electricoop were part of the Electric Power Authority (PREPA) at some point and have the knowledge and experience,” Hernández said.

“I firmly believe in the co-op movement. In fact, our energy project here in Villalba (Consorcio Energético de la Montaña), together with other municipalities, also seeks to become a cooperative system. In fact, this is how it works successfully in the United States and in other countries, where the generation is provided by one cooperative and the service is provided by another. In the particular case of Electricoop, what we are planning is for them to be in charge of maintenance and routine work in areas where there are personnel problems,” the mayor added.

On June 3, Gov. Pedro Pierluisi and Mayor Hernández, reported the allocation of $5 million to design the micro-grid that the Consorcio Energético de la Montaña proposes to cover the municipalities of Orocovis, Villalba, Morovis, Barranquitas, and Ciales. Similarly, the signing of an agreement was announced in which PREPA cedes to the Consortium, in usufruct, the Toro Negro de Villalba Hydroelectric Power Plant.

The latter is estimated to produce about 10 megawatts (MW) of electricity of the roughly 130 MW proposed for the micro-grid, which would be complemented with solar energy projects distributed among the participating municipalities.

“With this initiative, once again the Municipalities continue to generate proposals and solutions to the country’s problems. That is why we are constantly advocating for the fair allocation of resources so that we can achieve more. Now, we propose it for the electrical system, and in the past, we have done it successfully in infrastructure, such as roads, schools, and other issues. Our commitment goes on,” Hernández asserted.

Millions More Through the U.S. Treasury

In addition to CDBG-DR funds, the U.S. Treasury announced last month the allocation of $47 million for Puerto Rican co-ops through its Community Development Financial Institutions (CDFI) Fund.

The funding corresponds to the CDFI Rapid Response Program and is part of the federal stimulus legislation approved in December 2020 to offset the impact of the COVID-19 pandemic. This allocation is also the largest in the history of the CDFI program.

“This significant allocation of resources by the CDFI Fund recognizes and validates the historic work that credit unions have performed in the

The municipality of Villalba and Electricoop joined efforts to improve the region’s energy resilience. >Courtesy

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LUMA Energy’s Wayne Stensby >Archive

LUMA Energy Outlines Priorities, Continuing Challenges Faults PREPA mechanical failures and obsolete equipment

T

Adriana De Jesús Salamán

he president and CEO of LUMA Energy, Wayne Stensby, assured that the company has reacted diligently and effectively to all external challenges it has faced, one month since the company took over the Puerto Rico Electric Power Authority’s (PREPA) energy transmission and distribution through a public-private partnership on June 1.

“The most important job is behind the curtains, fixing broken infrastructure. We have found ourselves responding to the same problems three and four times and that is not cost-effective.

The important thing is to replace and fix lines, substations. It is an extensive list that we will attend to over the next decade,” Stensby said to reporters.

For the next 15 years, LUMA Energy is expected to operate on the island with a contract of over $1.6 billion, in addition to an incentive fee of $309 million.

Challenges and Opposition

The CEO said that among their priorities is controlling vegetation, with work that will last until next year. Falling trees, as well as mechanical failures from poor maintenance and aging

equipment, were singled out by Stensby as the main reasons for the constant blackouts and intermittent service that have been occurring.

However, Stensby underscored that many of the problems they have faced are due to the lack of maintenance of equipment and materials.

He offered as an example the fire last month at the Monacillos substation in Río Piedras, which left more than 800,000 clients without electricity service less than two weeks into the company taking over operations. He claimed that LUMA offered a “quick and efficient” response to this incident.

Along that line, he stated that there is an ongoing investigation to determine the cause of the fire. “We are doing our own forensic analysis to better understand what happened. I’d say there are still two to three weeks left to complete,” he stated. Despite initial allegations that pointed to sabotage, the Department of Public Security has ruled out evidence of criminal activity.

“The first month has been quite effective, although not without its challenges, particularly for employees who have been harassed for their decision to come to work at LUMA and help improve the system in Puerto Rico. They were clearly attempts to derail this important transition, but despite the barricades, we have the right team to work for Puerto Rico,” Stensby affirmed, alluding to the negative reception from former PREPA workers who opposed the contract with LUMA. Ever since the agreement was announced, there have been numerous demonstrations in opposition to LUMA’s takeover, as well as some reports of violence.

Ready for the Hurricane Season

LUMA started operating in Puerto Rico on the first day of the 2021 Atlantic hurricane season.

The CEO assured reporters that the company was monitoring Elsa, the first hurricane of the season in the Caribbean, which was projected to pass south of the island of Hispaniola.

“We have $130 million in inventory at the Palo Seco warehouse. It is for both daily work and for support in times of storms and hurricanes.

We have had substantial training between our teams and that continues. We also have a fleet on the island, so we are focused on making LUMA stronger every day,” Stensby asserted.

Gradual Hiring, App Downloads

Responding to questions by THE WEEKLY JOURNAL, Stensby informed that the company acquired a total of 1,200 employees from PREPA as of June 1. That number “has risen very little, but I would say not dramatically,” according to the executive.

In terms of substance, Stensby presented a brief PowerPoint presentation summarizing that the company has some 2,500 employees. In their first month of operations, LUMA answered 544,000 customer service calls, attended to 183,000 people through its customer service section, and published 900 posts on its social networks to “communicate with its customers.”

Meanwhile, only 250,000 clients of the more than 1 million customers have subscribed to the electric grid have downloaded the “MiLuma” app, while 400,000 have registered on the website.

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Cost of Living in Metro Area Shows Improvement

But remains more expensive than other U.S. jurisdictions

L

Ileanexis Vera Rosado

ivera@elvocero.com

@iveraro-

iving in the metropolitan area of San Juan, Carolina, and Carolina is more expensive than living —on average— than other metro areas in the U.S. mainland, according to the Cost of Living Index (CLI), which has been published by the Council for Community and Economic Research (C2ER) since 1968.

However, when compared to the first quarter of the past five years, the metropolitan area of Puerto Rico has experienced a downward trend — according to the data released by the Puerto Rico Statistics Institute (SI)— and it currently ranks 90th place compared to 285 jurisdictions consulted, with a CLI of 99.8.

According to the data registered for the first quarter of 2021, the index places the metropolitan area of Puerto Rico in position number 90, increasing 43 positions —the higher the number, the cheaper the destination—, compared to the same period five years ago, where he held the position number 47.

For the first quarter of 2016, the index stood at 111.6. During the subsequent years, the index continued with a downward trend, standing at 108 in 2017, 103.6 in 2018, and 100.2 in 2019. In 2020, it registered a slight increase compared to the previous year, standing at 100.7, a year that, for statistical purposes, is atypical given the impact of the COVID-19 pandemic.

According to the statistics provided by the SI, public services, as well as supermarket items, are the main reason for the rising cost of living in the metropolitan area of Puerto Rico. Public services have remained almost permanently in a fourth position out of almost 300 jurisdictions evaluated.

In the case of supermarket items, historically it has typically oscillated between the 13th and 15th rankings.

The greatest advantage of Puerto Rico is represented by the cost of health care, which is usually always in the last position, which makes it cheaper than in most cities in the U.S. mainland.

According to the most recent statistics from the first quarter of 2021, in the category of public services, the island’s metropolitan area ranks

Public service is the category that increases the cost of living in the metropolitan area. >Archive

The price of supermarket items also impact’s the island’s overall ranking. >Archive

fourth among the most expensive cities, with an index of 165.4, equivalent to 65.4 percent above the average of the United States. Meanwhile, it ranks number 13 on supermarket items, making it more expensive than the U.S. average.

This index, which compares the metropolitan area of Puerto Rico with other jurisdictions, contrasts with the reality experienced on the island. The most recent Consumer Price Index (CPI) —report prepared by the Puerto Rico Department of Labor and Human Resources Rico, which includes the entire island—, registered continuity in the island’s inflationary record, with a slight inflation of 1.5 percent now being observed, with

an increase in the main categories of goods and services, mainly transportation and food.

Importance of the CLI

This index, the SI stated, can be used so that a person can know how much it will cost to live in different parts of the United States, including Puerto Rico. It can also be useful for companies that are evaluating moving to the island to know the cost of living that workers would have, for purposes of deciding the compensation they will need to provide to their employees. Another important aspect is the access to federal funds that the island can receive.

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FOMB members in a recent public hearing >Brandon Cruz González

FOMB and Puerto Rico Gov’t Reach a Key Milestone

Agreement reached on first ‘compliant’ budget

I

Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

n what hopes to be the “beginning of the end” for Puerto Rico living under the federal Promesa law, the Financial Oversight and Management Board has certified the “first compliant general fund budget” submitted by the Puerto Rico government, a key element of the consolidated fiscal year (FY) 2022 budget for the island.

For the island to be no longer subject to Promesa, key objectives must be met. These include that the Puerto Rico government has a compliant and balanced budget for four years in a row, and complete the island’s debt restructuring process, involving more than $72 billion, and thus regaining access to the capital markets “at reasonable interest rates.” The debt load does not include an estimated $50 billion in unfunded pension liabilities.

FOMB officials have said that they expect the debt restructuring process to be completed in the next 12-18 months.

FOMB member Arthur González indicated that it remains to be seen if the FY 2022 budget will actually be “balanced” because debt service payments are not included, as the specific amount remains uncertain. “We need to get through that confirmation process, to establish the debt service that we are going to pay, and start to pay that

federal stimulus funds related to the COVID-19 within the budget to trigger the beginning of the pandemic, including $1.9 billion in unemployment, four consecutive years,” he noted. an incremental $1.7 billion for food stamps, $476 Last week, after weeks of negotiations, Gov. million in small business support, and $2.5 billion Pedro Pierluisi signed the $10.1 billion general in tax incentives, the FOMB indicated. fund commonwealth budget that was passed by The government’s Certified the Puerto Rico Legislature. As Fiscal Plan also estimates over expected, the Oversight Board $3.0 billion in federal disaster certified this $10.1 billion general recovery funds will be disbursed fund budget, together with a and invested in rebuilding in FY $3.5 billion special revenue According to 2022, primarily from FEMA and fund budget and $7.8 billion the FOMB, the most CDBG-DR programs in response to federal fund budget, bringing significant spending the disastrous effects of Hurricane the consolidated budget for the in the consolidated Maria in 2017 and the 2020 Puerto Rico government to $21.4 budget continues earthquakes. billion. to be healthcare ($4 For example, the local According to the FOMB, the billion) and education Education Department will have most significant spending in the ($3.9 billion), each access to $6.9 billion in federal consolidated budget continues comprising almost 20 funding from disaster recovery to be healthcare ($4 billion) and percent of the total and COVID-19 related programs. education ($3.9 billion), each consolidated budget.

Taken together with the regular comprising almost 20 percent of annual budget, some $9 billion will the total consolidated budget. be available for K-12 education in “The budget developed jointly by the governor, the Puerto Rico. “The available funds Legislature and the Oversight Board is a significant create a unique opportunity to rebuild, recover, and improve education for the over 250,000 achievement and an important step toward students in the [public] school system, but requires achieving fiscal responsibility and economic strategic planning to effectively utilize these funds,” stability,” said FOMB Chairman David Skeel during the Oversight Board said. the public hearing held to discuss the issue.

“The budget for the new fiscal year reflects “The Oversight Board, the governor and the Puerto Rico’s reality and Puerto Rico’s opportunity,” legislative leadership cooperated more closely FOMB Executive Director Natalie Jaresko pointed than in any previous year to ensure the budget prioritizes critical services that are so important for out. “Taken together with the significant federal funds available as a result of the pandemic and the lives of all residents of Puerto Rico,” he added. disaster recovery, this budget offers historic levels In addition to the traditionally budgeted federal of resources to invest in Puerto Rico’s recovery, funds, the economy of Puerto Rico as a whole stability and economic growth.” will benefit from an incremental $20 billion in

In fact,

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New Startup Revolutionizing Women’s Health Puerto Rican researchers investigating endometriosis treatment

A Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

group of Puerto Rico-based doctors and medical researchers are in the process of launching a startup company, with aims to attract funding and continue their research into a new treatment

for endometriosis.

In an exclusive interview with THE WEEKLY JOURNAL, Dr. Annelyn Torres-Reverón of the Department of Physiology and Pharmacology at the Ponce Health Sciences University - and principal investigator in this novel research - explained that she and fellow biosciences professionals are looking into repurposing the use of non-hormonal antagonists for corticotrophinreleasing hormone receptor type 1 (CRHR1) to treat endometriosis.

The initiative stems from the Technology Transfer Office Program (TTOP), which is part of the Puerto Rico Science, Technology & Research Trust (PRSTRT).

Along with Torres-Reveron, Drs. Caroline Appleyard, Idhaliz Flores and Ignacio Pino seek to grow the commercial potential of their idea by applying for a Small Business Innovation Research grant from the National Institutes of Health and gain venture capital and angel investor funding.

Meanwhile, the Therapeutics Accelerator Program of the PRSTRT is funding university investigators with up to $75,000 each, with additional support from the Center for Innovation and Commercialization of the University of Texas, an entity with a similar role as the PRSTRT. “I started exploring the idea of entrepreneurship when I was at the University of Texas. There, I had the opportunity to go through a training… but it was not until January 2021, when we decided to take training in an accelerator program through the [PRSTRT] in collaboration with Columbia University,” Torres-Reveron said. “It clarified so many ideas that I had on my mind and Caroline and I started considering the idea of what if we actually do this as a company.”

The startup is called Sur180 Therapeutics LLC. The team got its initial proposal in gear through collaborators and donations, while the company

The team is seeking venture capital and angel investments. >Archive

is now seeking to take it further with grants and investments.

The business side will be managed in Texas with support from university students, while the research aspect will continue in Puerto Rico with input from local students. In fact, students have already been involved in this research, and Torres-Reveron affirmed that she hopes to inspire Puerto Rican medical students to stay on the island and explore biotech research and business opportunities locally, as well as to attract more talent from overseas. “I have spoken with many scientists here on the island and they want to see that ecosystem growing here,” she stated.

Adding to that sentiment, David L. Gulley, TTOP director in Puerto Rico, said there are many “great scientists in Puerto Rico,” but the business ecosystem is still underdeveloped. “ These kinds of examples, as Annelyn is talking about, is one way to continue to push into that development, so it shows that it’s possible - it’s the idea of the possibility. And so, others see that and they are then given a sense of thinking in a different way, that maybe they can do it as well,” he said. “I would say it’s the business of science in many ways, and those are the things that we are trying to build and the Trust’s programs are there to help do that.”

The Science Behind the Business

According to John Hopkins Medicine, endometriosis is a long-term condition that affects up to 10 percent of American women in the 25-40 age range, in which patients develop tissue outside the uterus, often causing intense

pain in their menstrual cycles and even infertility in some cases. While there are different types of treatments currently available, as well as less common surgical procedures, the treatment under evaluation by Torres-Reveron and her peers would revolutionize the field.

“We have to think about this in a holistic model,” she explained. CRHR1 antagonists were originally developed for reducing anxiety and depression because this receptor is abundant in the brain and is known to play a role in these mental health disorders and stress responses, something that Torres-Reveron had studied in her neurosciences background. However, the uterine tissue, as well as endometriotic tissue, also expresses the same type of CRHR1 receptors than those expressed in the brain.

Moreover, the research group discovered that CRHR1 also has a role in endometriosis development and progression. By antagonizing the CRHR1 receptors early in the disease process, they reduced endometriosis lesions by 67 percent in a rat model of endometriosis.

As explained, there are two critical steps that need to be accomplished before moving the drug repurposing experiments towards the stage of clinical trials: test the effect of the selected CRHR1 antagonist on endometriosis-related pain, and test different antagonists within the same family of drugs to verify the generalizability of findings to other pharmacological antagonists for CRHR1. These experiments will demonstrate the therapeutic feasibility of repurposing the CRHR1 antagonist use towards endometriosis and possibly other uterine-related diseases.

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Managing Change Successfully in Government Agencies

Important insights from V2A report

C

ompanies and organizations, whether in the public or private sectors, must often manage change and create a team that is effective and aligned with their respective “cultures.”

Tatiana Mendoza and Carlos Aponte of V2A Consulting, are providing key perspectives into this process through their report, “ Managing change through government agency integration and dismantlement.”

“In Puerto Rico’s government organization landscape, this challenge is very relevant with recent developments in agency reorganizations and Puerto Rico’s [Electric Power Authority’s] (PREPA) recent transition from being a public corporation to being operated and maintained by a private company. In PREPA’s case, it is estimated that around 3,000 employees are being relocated to multiple agencies across the government. The speed of immersion of PREPA employees into their new employing agencies’ operation and culture will drive the success of this transformation. The risk is that a group of employees falls into areas where their work might not be needed, not valued, and eventually become displaced completely,” as per the report.

Among the important considerations and opportunities to make the transition positive for the team include the following: * Within the context of governmental agencies’ integration, this could mean, for example, the opportunity for agency directors to review the organizational structure and workload, and to assess the capabilities of the employees within their teams. * Managers can potentially see integration as an opportunity to re-organize their department office according to their new headcount and incoming employees’ skills, improve outdated processes while reviewing plans, objectives, and metrics. In PREPA employees’ case, since they are not carrying additional workload, they can add bandwidth to a department that is overworked or that is not meeting the agency’s target results. * For incumbent agency employees, leaders sometimes forget to consider that they will also experience a period of change, adoption, and disruption within their department. Managing

>Carlos Rivera Giusti

The Weekly Journal Staff

In PREPA’s case, it is estimated that around 3,000 employees are being relocated to multiple agencies across the government. The speed of immersion of PREPA employees into their new employing agencies’ operation and culture will drive the success of this transformation.

-V2A report

change for them starts with the overall change story and should trickle down through their managers and supervisors. To promote a smoother transition, existing employees must be included in the process; they should know and understand the impending changes so that they can contribute and act upon the incoming employee onboarding process.

* For most incoming employees, the change is major, overnight and against their preferred outcome, as they are forcefully transferred to another agency. Change is hard as it is, making the change occur faster can reduce their change curve experience and will have a significant impact in making the integration more successful. This means that the common change curve can be accelerated depending on the agency’s effort and dedication to make the integration a positive one. * The agency should make sure that communication is solid and very frequent, on the other, this communication should be both ways.

Implementing employee sentiment and feedback surveys to take the pulse of the organization along the process is always valuable.

As stated by the report, “there is a pressing challenge for all the stakeholders involved in managing the emotional side of change. A challenge that when poorly acknowledged and faced, cannot just make things more difficult, but also more costly.”

Beyond pep talks and “inspiring speeches,” a Change Management strategy with clear objectives is necessary. “Change leadership takes courage and skill. It addresses the beliefs, behaviors, values, and resources needed to work as a team more effectively and ensures a shorter and less steep change curve for all the stakeholders involved,” the report concludes.

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Omar J. Marrero

Executive Director of the Fiscal Agency and Financial Advisory Authority

Cofina is a Good Investment

A

s Benjamin Franklin said, death and taxes are the only two things certain in life. Therefore, the Cofina bonds can be an attractive option in a diversified portfolio of financial instruments and estate planning.

From 2009 to 2015, many investors in Puerto Rico assets sustained losses. First, real-estate prices collapsed. Speculation drove property prices to very high levels that were disconnected from the demographics and economy of the Island.

The bankruptcy of many realestate developers caused several commercial banks to shut down.

Thus, WesternBank, Eurobank,

R-G and Doral shareholders lost their investment. Finally, the Commonwealth of Puerto Rico defaulted on its bonds. Cofina, a government corporation that issues sales-tax (IVU in Spanish) backed bonds, entered Title III of Promesa, a form of bankruptcy, on May 2017.

Recently, Puerto Rico’s assets have made a comeback. The stocks of the three local banks that are publicly traded in the stock market have doubled from their lowest point at the beginning of the pandemic.

House prices have significantly increased.

In February 2019, Cofina emerged from the Title III proceedings with an agreement to exchange existing bonds for new Cofina bonds. Since then, the new Cofina bonds have

been paying interest while their prices have also increased from 77 cents on the dollar, at the beginning of the pandemic, to more than 100 cents on the dollar today.

Unfortunately, many Puerto Ricans are reluctant to buy Cofina bonds.

Therefore, a large part of the profit of these bonds has been captured by investors in the U.S. Two-thirds of the new Cofina bonds are owned by institutional investors such as Goldman Sachs, BlackRock and Vanguard.

No investment is completely risk free. The appeal of the new Cofina bonds for conservative investors lies in the fact that they have a clear and significant repayment source.

As part of the Title III process, ownership interests to the Cofina

revenues that pay for the bonds were irrevocably transferred to Cofina by the Government of Puerto Rico. Therefore, the Cofina credit is completely independent of the Commonwealth credit.

Meanwhile, sales tax revenues in FY 2019 reached 138% of the maximum annual debt service requirement, that is, sales tax revenues exceeded the payment of the new Cofina bonds by 38%. To pay the Cofina debt, sales tax revenues do not need to increase, they only need not to collapse.

The collapse of the sales tax is very unlikely. Sales tax revenues do not depend on volatile demand products such as new automobiles or housing units. On the contrary, they depend on consumption products such as clothing, cleaning products and haircuts.

Cofina has the characteristics of an investment grade instrument.

This said, before investing, it is critical to consult an investment advisor to confirm that these bonds are consistent with the investment strategy being followed.

Cofina’s success shows that Puerto Rico is exiting from bankruptcy confidently and with a vision for the future.

An extra key element to consider is using gas and diesel power generators. While they remain good Licensed Architect and co-founder of the architectural firm Álvarez-Díaz & Villalón® support for short-term power loss, www.advfirm.com new renewable energy systems can provide long-term value. Luckily, the growing alternative energy industry is making renewable technology, such as solar panels and solar thermal systems, available to more people.

We suggest scaling down dependence on oil-based fuels by reducing daily energy consumption patterns in your he extensive as a baseline in the creation of seals and window framing, vents, and home, evaluating alternative energy physical damage structures that can withstand extreme doors annually, for signs of wear or systems, and managing a backup and human circumstances such as seismic activity, separation. Watch out for corrosion. system to get through an emergency. suffering caused by hurricane winds, impact from flying Regularly inspect outdoor fixtures for Finally, create a family plan. man-made disasters objects, rains, and floods, to minimize signs of rust, corrosion, leaks, seepage, With hurricanes, earthquakes, and like the Surfside physical damage and save lives. and cracks. Clean immediately other extreme events becoming building collapse, The best way to maintain any and replace corroded elements if more common, all families need an plus the uncertainty of natural structure is to understand its necessary. emergency plan that addresses their disasters, remind us of the importance vulnerability and implement the Another important component household’s needs. All good plans of emergency preparedness. You must solution that best targets it. Periodic to consider is hurricane shutters. will help you determine what you maintenance is extremely important always consult a licensed architect Hurricane shutters, or storm shutters, and your family need to do before, for the overall health of any structure, are built to withstand and act as a or engineer to ensure your property during, and after any disaster. Your and knowing what makes the is code compliant and safe in order barrier against the wind. They protect plan should focus on helping you and foundation, walls, and roof of the to protect the lives of the people you windows and help prevent flying your household manage important building strong can help create an love and potentially mitigate property debris, rain, and damaging winds information, stay connected, and overall upgrade approach while damage caused by natural and manfrom entering your home. Made from have essential supplies during and addressing multiple hazards at once. made disasters. a variety of materials, well-designed immediately after a disaster.

The condition and strength of a Over 95% of the construction hurricane shutters are durable and will While no one can anticipate all structure depend on continuous damage during Hurricanes Maria not warp when hit by the elements. the consequences of a catastrophe, monitoring and frequent and Irma in Puerto Rico occurred Installing shutters is one of the best past events have taught us that being maintenance. Check that the building’s long-term solutions for keeping in structures that were not codeprepared is the key to successfully compliant. Building codes serve openings are properly sealed. Inspect homeowners safe during hurricanes. overcome them.

Ricardo Álvarez-Díaz

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Emergency Preparedness: The Key to Disaster Survival

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/ Wednesday, July 7, 2021

Hyatt Regency Grand Reserve to Host Miss World 2021

Puerto Rico expected to generate roughly $150 million in tourism brand recognition

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The Weekly Journal Staff

he Hyatt Regency Grand Reserve Puerto Rico in Río Grande signed an agreement to be the host hotel for the contestants of the Miss World 2021 international beauty pageant and its 70th anniversary, which will be held later this year, on Dec. 16, in San Juan.

Roughly 120 contestants are expected to participate in Puerto Rico from Nov. 19 to Dec. 17, 2021.

The newly remodeled Hyatt Regency Grand Reserve Puerto Rico - which has 579 rooms distributed in 72 acres with spectacular views of gardens, El Yunque and the Atlantic Ocean - was selected by Miss World Ltd. after presenting the best proposal among three hotels on the island that, in the opinion of the international organization, met the requirements to provide adequate accommodation and the security specifications required for contestants from different countries.

Nereida Amador, director of sales and marketing of the Hyatt Regency Grand Reserve Puerto Rico, indicated that a multimillion-dollar renovation was made with the purchase of the property in 2019 and the property’s “excellent condition” will be seen by 2 billion people who will tune in to the international pageant, be it on television or social media.

It is estimated that the international beauty pageant will boost Puerto Rico’s economy by generating approximately 2,840 nights at the Hyatt Regency Grand Reserve Puerto Rico for a month between the candidates and the Miss World team, plus 10,000 additional nights in hotels in the metro area during the last week among fans, family members and franchise holders.

As a travel destination, Puerto Rico will receive exposure in unpaid advertising and an increase in recognition of nearly $150 million through news coverage on television, digital platforms and print reports, as well as acquiring destination branding for the island.

Moreover, Miss World 2016 Stephanie Del Valle, president of the Reignite Puerto Rico foundation and organizer of the Miss World 2021 international pageant, said that the contest serves as a much-

Puerto Rico’s own Miss World 2016, Stephanie del Valle >Josian E. Bruno Gómez, archive

needed relief for the difficult times that Puerto Rico has experienced during the past years. “This event with its international exposure is an ideal global platform to show the world what Puerto Rico has to offer while injecting money into Puerto Rico’s economy,” Del Valle affirmed.

Nereida Amador, of Hyatt Regency Grand Reserve Puerto Rico, and Miss World 2016 Stephanie Del Valle >Courtesy

Reignite Puerto Rico was created to attract events of economic impact to Puerto Rico and help social causes on the island.

It is the first time that the international Miss World pageant will be held in a Spanish-speaking country and Puerto Rico was awarded this honor.

In the past 69 years, only 15 Latinas have won this prestigious British beauty pageant. Among the winning countries are Venezuela, a country that has won six crowns; Puerto Rico, with two, as well as Peru and Argentina. The Dominican Republic, Brazil and Mexico have had a winner each.

For the finals of Miss World 2021, of which Telemundo Puerto Rico is the official channel, all previous queens are expected to be invited. There will be six mini-competitions - talent, sports, “Top Model,” multimedia, beauty with purpose, and a face-to-face debate, which will give the winner of these events the opportunity to enter directly into the group of semifinalists.

Miss World is the oldest international beauty pageant, established in 1951. The current Miss World is Toni-Ann Singh from Jamaica. AnnSingh has been the queen since 2019 because the contest was postponed in 2020 due to the COVID-19 pandemic.

The pageant has produced two winners from Puerto Rico: Wilnelia Merced Forsyth, Miss World 1975 and Stephanie Del Valle, Miss World 2016.

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/ Wednesday, July 7, 2021

>Marija Jovovic via gettyimages.com

Quick Meditation: 10-Minute (or Less!) Mindfulness Exercises Finding time for mindfulness

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Women’s Wellness

ften, meditation and mindfulness can feel like overwhelming tasks – precisely the opposite of what they should be! The idea that we have to find large chunks of time to sit and be still, quiet and present can feel impossible on busy days; fortunately, practicing mindfulness and meditation does not require a big time commitment! In under ten minutes at a time, you can check in with your body, focus your mind on the present, and help energize your positive outlook with these six techniques.

Body Scan

Getting into the habit of being in tune with our body’s tension, aches and pains can help us direct energy and healing where we need it most. A “body scan” is a mindfulness activity that enables you to find these trouble spots and learn to pay close attention to your physical self. Starting at your toes, mentally scan each part of your body (squeezing and releasing the muscles can help physically direct your attention to that spot if you’re having trouble) and note any discomfort.

When you’ve reached your head, take five deep breaths while you visualize healing energy traveling to the problem spots your scan revealed.

5-4-3-2-1 Grounding

Often throughout the day, we have moments of anxiety, a flood of emotions, or feelings of doubt

or panic. At these times, incorporating a quick grounding exercise can help our mind and body return to the present and feel calmer and more in control of the current situation. An easy grounding activity is one where you use your various senses to observe and note things: 5 – notice five things you see 4 – four things you hear 3 – three things you feel/touch 2 – two things you smell 1 – one thing you taste After you arrive at 1, take several deep breaths and return to the present, fully grounded in your physical surroundings and the power of your body.

Chakra Balancing

You might be familiar with the seven chakras (Sanskrit word meaning “wheel”) and their relationship with meditation and mindfulness.

Some believe these are the energy centers of your body, and “unblocking” or “balancing” them will allow for a more integrated and natural flow of energy in your body, mind, and soul. While the practice of tuning into your chakras can be extensive, many activities can quickly help you find your energy centers and continue your day more balanced. Follow an easy-to-read guide to balancing your chakras in a single session to start you on your way.

Guided Meditation

Many people find it hard to force their minds to calm down from all the energy that the day brings.

Guided meditation is a good choice for fast and easy meditation practice - while listening to your guide, you can shut off the decision-making part of your brain and simply listen and absorb. For a wide variety of free guided meditations, try Tara Brach.

You can sort by category or just browse and find

one that fits in your time constraints – there are options from 10 to 40 minutes.

5-Minute Observation

While this activity may seem too simple to do any good, its simplicity is actually the challenge.

Choose an object around your house or desk (a piece of fruit, a leaf, etc.) and observe it for a full five minutes. Gently bring your thoughts back to the object if you find them wandering. Your goal here is to be fully in the present and engage your senses completely. If you get stuck and don’t have more observations, make sure you’ve mentally checked off all five senses; yes, you can taste your object (or imagine what it would taste like if it’s too dirty!). When the five minutes have passed, take three deep breaths and notice that your energy level and ability to focus have both improved!

Box Breathing

An easy activity that you can complete anytime, anywhere, box breathing is a rhythmic breath that helps you center and align your mind and body.

Imagine a box in your mind; as you inhale, count to 4 and travel along one side of the box, then hold your breath for a count of 3 while traveling down the second side, then exhale for a count of 4 on the third side, and hold again for a count of 3 along the final side: 4,3,4,3. The rhythm may feel forced at first but continue until it feels natural. If you’d like to incorporate more aspects of meditation in this activity, choose a mantra or intention and repeat it in your mind while you hold your counts.

Finding pockets of time to incorporate meditation and practice mindfulness skills will make it easier to build these routines into your wellness journey; choose one (or more!) of these quick activities to start using today!

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/ Wednesday, July 7, 2021

Anegada Kite & Paddle Festival Gears Up for its Fifth Edition July 17-18 at the Anegada Beach Club in the BVI

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ant to take a great weekend break that is not too far from Puerto Rico? Check out the British Virgin Islands (BVI).

Kicking off its fifth edition, there’s still plenty of time to buy tickets for the two-day water sports celebration that takes place on July17 to July 18, 2021 at the Anegada Beach Club in Anegada, the BVI. Like Puerto Rico and other islands in the Caribbean, the BVI is also emerging from the COVID-19 pandemic and this event is a great opportunity to enjoy a weekend filled with sun, sea and relaxation, thanks to the Anegada Kite & Paddle Festival.

“After a year-long lockdown, we are thrilled to welcome visitors and residents alike for one of boarding clinics to give you the support you need the most recognizable water sports festivals in the to get on the water. If you’re already kiting, you territory,” said Clive McCoy, director of the British can enter one of our friendly competitions or Virgin Islands Tourist Board. “Still, explore the coast on an epic we ask all guests to continue downwinder.” taking precautions against Gaunt, who is also the founder COVID-19 such as using hand of Tommy Gaunt Kitesurfing in sanitizer and social distancing.

Keel Point, Anegada, added that Overseas visitors who are fully The BVI has the festival will also feature offvaccinated just need to bring a long been hailed as the-water activities such as yoga, negative COVID-19 molecular or the sailing capital meditation, group meals and rapid test result taken five days of the world for music. prior to their arrival and proof of its line-of-sight The Anegada Kite & Paddle their vaccination status.” sailing, myriad boat Festival is offering two types According to Tommy Gaunt, charter options, of tickets: one for the kite and the event’s producer and host, and an array paddling events, and wellness the fifth edition of the Anegada of experiences tickets for those who will not Kite & Paddle Festival will have an catering specially participate in the water sports action-packed agenda featuring to yachties. events. kitesurfing competitions, Tickets for the Anegada Kite & kitesurfing and stand-up paddle Paddle Festival are limited and boarding downwind races, taster must be purchased in advance lessons, a variety of yoga and through online booking site meditation classes, evening The Ticket Fairy. For more information about the entertainment and lots of good vibes. festival, events, prices, and to purchase tickets, log “The Anegada Kite & Paddle Festival aims to on to: www.ticketfairy.com/event/anegada-kitebring together a community of watermen and paddle-festival-2021. women in one of the most secluded kite spots Known as a treasured destination rich in in the world to enjoy the wind and waves,” undiscovered experiences, the British Virgin Gaunt said. “If you’re new to watersports, the Islands is an archipelago comprising 60 islands Anegada Kite & Paddle Festival offers introductory and cays located in the north-eastern region of the kiteboarding lessons and stand-up paddle Caribbean Sea. The BVI has long been hailed as

>Courtesy

The Weekly Journal Staff

>Courtesy

In fact,

the sailing capital of the world for its line-of-sight sailing, myriad boat charter options (bareboat, crewed, powered, traditional hoisted sail) and an array of experiences catering specially to yachties.

Anegada is the most northern island in the British Virgin Islands; it’s 15 mile coast lines of white sandy beaches and shallow blue waters makes it the most scenic watersports playground in the region, especially for kite boarders and paddlers alike.

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