The Weekly Journal - September 11, 2019

Wednesday, September 11-17, 2019 - // no. 020

Puerto Rico and the Caribbean

www.theweeklyjournal.com

FOMB GOES FORTH WITH ITS AGENDA P6 CONVENTION CENTER REPORTS HIGHEST NUMBER OF VISITORS SINCE OPENING P8 ECONOMIC ACTIVITY INDEX REVEALS POSITIVE OUTLOOK P10

PUERTO RICO’S TELECOMMUNICATIONS

“FULLY RESTORED” Network providers establish new mechanisms to ensure service continuity in the case of future atmospheric events

W Giovanna Garofalo

MEET EL CHAPO’S PUERTO RICAN ATTORNEY P20

ggarofalo@wjournalpr.com

@giopgarofalo

ith the second anniversary of the historic Hurricane Maria approaching, and with hurricane season looming over Puerto Rico until November, the island’s telecommunications industry affirms that in addition to having recovered from the devastation caused by the category 4 storm, its respective companies are implementing strategies and technologies as to recover

more effectively in the event of another natural disaster.

Sandra Torres, president of both the Puerto Rico Telecommunications Regulatory Board and the P.R. Telecommunications Bureau (NETPR by its Spanish initials), explained to THE WEEKLY JOURNAL that the experience of Hurricane Maria was an eye-opener in terms of the island’s weakened or outdated infrastructure as well as the importance of the industry.

When the storm made landfall on Sept.

2017, it shattered key infrastructure belonging GO TO PAGE 4

>Archive

AFTER HURRICANE MARIA

The Weekly Journal > Wednesday, September 11, 2019 > 2

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A WEEK IN REVIEW PUERTO RICAN LEADERSHIP MEETS WITH WHITE HOUSE OFFICIALS

>Archive/Josian Bruno

>Courtesy Office of the President of the Senate of Puerto Rico.

Gov. Wanda Vázquez, Senate President Thomas Rivera Schatz, House Speaker Carlos “Johnny” Méndez and Resident Commissioner Jenniffer González met with Douglas L. Hoelscher, deputy assistant to President Donald Trump and director of intergovernmental affairs to discuss issues related to the island’s recovery plans and the allocation of federal funds.

Vázquez Garced met with secretary of the Federal Treasury Department, Steven Mnuchin, as well as Ben Carson, secretary of the Department of Housing and Urban Development of the United States, members of the Department of Energy and officials from the Federal Department of Education and the U.S. Department of Health.

The governor pointed out that federal health officials were receptive and optimistic about the approaches discussed in order to ensure Medicaid funds.

“I appreciate the openness and interest displayed by U.S. Department of Health officials upon hearing our ideas related to the health needs in Puerto Rico. I hope this first meeting benefits Puerto Ricans,” said the governor.

During the meetings, aspects related to natural disaster response programs were also discussed.

Federal prosecutors filed charges against Asha Tribble, former FEMA Region 2 Administrator, and Donald Keith Ellison, former president of Cobra Acquisitions Energy, a subsidiary of Oklahoma-based Mammoth Energy Services, for fraud related to the repair Puerto Rico’s electrical grid in the aftermath of hurricane Maria. The indictment alleges that Tribble lobbied in favor of Cobra Acquisitions Energy receiving contracts worth up to $1.8 billion to repair the island’s electric grid. The indictment goes on to state that the defendants defrauded the government, bribed a public official and engaged in a conspiracy. Cobra was responsible for two islandwide power outages in 2018; one after a tree fell on a transmission line and the other when an excavator got too close to an energized line, provoking an electrical ground fault.

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

>AP

FEDERAL AUTHORITIES ARREST FORMER REGIONAL FEMA ADMINISTRATOR FOR FRAUD RELATED TO P.R.’S ELECTRICAL GRID REPAIR PUERTO RICO OPENS AID-COLLECTION CENTERS FOR VICTIMS OF HURRICANE DORIAN Puerto Rico’s Legislative Assembly has established drop-off centers to collect basic articles at the Capitol and across the island to help victims of Hurricane Dorian in the Bahamas. The Mayors Federation also announced the establishment of collection centers throughout the island. For more information, please visit: www.senado.pr.gov

President Salvador Hasbún shasbun@elvocero.com

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

Managing Editor Yennifer Álvarez yalvarez@wjournalpr.com

Comptroller Félix A. Rosa frosa@elvocero.com

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Production Director Eligio Dekony edekony@elvocero.com

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

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CONTINUED FROM PAGE 1 to the P.R. Electric Power Authority (Prepa) on which telecommunications companies rely in order to provide their services. As such, millions of residents were unable to communicate with their family or loved ones, unaware of their circumstances and unable to contact much-needed emergency workers.

Thus, on Jan. 2018 then-Governor Ricardo Rosselló signed into law Senate Bill 711 which declared the telecommunications industry as an essential public service. Therefore, in the event of another disaster, the government’s contingency plan should prioritize the recovery of this industry.

“Taking that legislation as a base, we started negotiating with Prepa so they would sign a critical infrastructure agreement which would state where every telecommunications provider had their critical infrastructure. That way, they would be given an estimate of the number of hours or days it would take to reestablish electricity in those places,” Torres said.

Despite the debris and financial losses, the industry has been implementing measures to ensure that it can withstand another blow from nature.

“We have a telecommunications industry that is more robust in terms of infrastructure,” Torres affirmed.

Many of these companies are establishing underground fiber optic cables, which are more powerful than the traditional copper wires.

According to Torres, there are approximately 10,000 miles of this material, which reduces these companies’ reliance on Prepa’s utility poles.

Telecommunications companies have also “tripled” their number of energy batteries

and generators, and they’ve acquired mobile microwaves, which is a type of wireless communication technology that uses highfrequency beams of radio waves to provide highspeed wireless connections. Mobile microwaves have the added benefit of being portable so they can be transported as needed if an emergency occurs.

José Juan Dávila, vice president and general manager of AT&T Puerto Rico, declared that the company—ranked by a third-party entity as the most powerful network in the island—is “completely restored” from hurricane-related damages, largely because of the implementation of the aforementioned technologies.

“In order to ensure that we are ready for future events, a considerable portion of the fibers are underground, so the access to our call network is underground. We also have a redundancy plan that includes the use of microwaves for the central part of the island,” Dávila informed.

Moreover, Enrique Ortiz de Montellano, president of Claro Puerto Rico, also stated that their mobile network is fully restored, with even more coverage and capacity than before the onslaught of Hurricane Maria. The company has also invested nearly $500 million to improve its network and advance in the development of the next generation of wireless technology.

“We have been aggressively modernizing with optic fiber. We already have 100,000 homes with optic fiber coverage; before the hurricane, we had 7,000... We expect to finish the year with 180,000 and continue at an accelerated pace the next three years,” Ortiz de Montellano said.

Apart from the work these and other telecommunications companies have put into strengthening their networks, the local government has been provided satellite phones by the NETPR. Torres explained that although initially assigned to first responders and agency directors, after Hurricane Maria, the Federal Emergency Management Agency (FEMA) also provided municipalities and the Puerto Rico State Bureau for Emergency Disaster Management with satellite phones.

When asked if companies are ready for another disaster, Torres informed that during the threat of Sandra Torres, president of both the Puerto Rico Telecommunications Regulatory Hurricane Dorian, the Board and the P.R. Telecommunications Bureau (NETPR by its Spanish initials), NETPR activated its explained to THE WEEKLY JOURNAL that the experience of Hurricane Maria was an contingency plan and eye-opener in terms of the island’s weakened or outdated infrastructure, as well as each network provider the importance of the industry. >Carlos Rivera Giusti

/ Wednesday, September 11, 2019

José Juan Dávila, vice president and general manager of AT&T Puerto Rico, declared that the company is “completely restored” from hurricane-related damages. >Archive

activated their respective emergency plan as well.

“The response from these companies was immediate. We maintained communication throughout the entire time and we didn’t have any type of problem. Thankfully, Dorian didn’t come, but we used it as a rehearsal and the industry proved to be two or three times more prepared than for Hurricane Maria,” she said.

Challenges in the Industry

Despite the considerable progress reported by both the companies and the government, the telecommunications industry still faces several challenges, some of them beyond their control.

Luis Romero, vice president of the Puerto Rican Telecommunications Alliance (APT by its Spanish initials), observed that one of the biggest struggles for these network providers is excessive government regulation. He explained that the telecommunications industry is highly competitive by design and would operate more efficiently under a free market with limited government intervention.

“All that regulation is a thing of the past...

Every time [the government] comes up with new burdens or obligations for the industry it becomes less efficient and what could be used to develop new technologies and new services is used to address that issue,” he denounced.

For his part, Ortiz de Montellano explained

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that a challenge shared among all competitors is the issue of mass migration that has drastically increased in recent years, because of the fact that these companies cater to a mass market. Another issue he pinpointed is the economic recession that Puerto Rico has been experiencing since 2006 because it “drives people to spend less.”

Moreover, he noted that the process to obtain permits “has always been a challenge in Puerto Rico; you need permits for everything.”

Both Ortiz de Montellano and Torres concurred that Prepa’s outdated electricity grid is also an issue in terms of ensuring services.

Addressing this issue, during the threat of Hurricane Dorian in late Aug. 2019, Gov. Wanda Vázquez stated that Prepa introduced pivotal changes to their disaster contingency plan and that they had more than 23,000 posts, more than 120,000 luminaries and more than 7,400 transformers in storage. Before Hurricane Maria’s passing, Prepa had only had an inventory of $22 million in equipment whereas it now has one worth $141 million.

These enhancements to the public utility, combined with companies’ efforts to be less dependent on its services, provide a different outlook compared to 2017.

Torres also indicated that Puerto Rico’s own mountainous topography hinders the development of new infrastructure and consistent service in all areas.

“In terms of the development of infrastructure we mostly depend on the FCC to allocate funds or fund pairing so that the private industry invests in Puerto Rico,” the NETPR official said.

FCC Allocates $950 Million for Hurricane Recovery

Enrique Ortiz de Montellano, president of Claro Puerto Rico, also stated that their mobile network is fully restored. >Carlos Rivera Giusti

Ortiz de Montellano expanded on this topic, confirming that the FCC had indeed already announced that allocation, but was in the process of gathering comments and suggestions from the local industry.

On Sept. 26, commissioners will vote on the approval of those resources as established in the FCC order and they will discuss fund distributions at their monthly meeting.

“These allocations would allow the strengthening of the island’s telecommunications infrastructure, ensure it against future atmospheric threats and ensure the sector’s future by advancing the full development and establishment of 5G technology,” Torres said.

According to Torres, Hurricane Maria caused roughly $2.5 billion in losses for the industry.

On Sept. 5, 2019, the NETPR informed via press release that the Federal Communications Commission (FCC) released an Order to the Making Way for 5G and Innovation Commissioners that designated roughly $950 Beyond strengthening their networks, million to Puerto Rico and the U.S. Virgin Islands in telecommunications response to the wrath companies are also of Hurricanes Irma and investing in the Maria two years ago. development of the Of these, $760 million next-generation would be distributed to wireless technology, Puerto Rico.

5G. Companies However, Romero currently provide 4G noted that the FCC LTE or, in the case of has been saying that Claro, for example, it would allocate Sandra Torres, president of the Puerto Rico 4.5G—a transition that that amount since Telecommunications Regulatory Board took place within 12 the aftermath of the months. hurricane, so it is not According to Torres, new or additional companies—including funding. local, American, and international providers “In every bill that clients pay monthly, there is established in the island—have already made the an amount of money that telecommunications arrangements to acquire the frequency and the companies send to the FCC. The FCC basically said bandwidth required for that technology, as well as that what they would have distributed in the next ten years, will be allocated all at once so they don’t the corresponding permits.

“5G is far closer to being in Puerto Rico than need to designate more funding,” Romero said.

“The industry proved to be two or three times more prepared than for Hurricane Maria”

people can imagine. All providers... are investing in bringing 5G technology to Puerto Rico. We still have a ways to go, but I would say that [it should be available] by 2020 or 2021,” Torres said.

Meanwhile, Romero said that there is still “a long way to go” before 5G wireless technology is fully implemented on the island. He also stated that Puerto Rico is more advanced in this regard than any other country in Latin America or the Caribbean, “and possibly the majority of the United States.”

Dávila said that AT&T does not have an estimated date on when they will release or announce 5G for all clients, but confirmed that the company is headed in that direction. The network provider is currently in its “5G Evolution” stage, which offers speeds of up to 400 megabytes (MB) per second. Among the company’s short-term goals is to be the first to launch 5G in this market.

Ortiz de Montellano also affirmed that Claro is working on providing that new technology. The multinational company already purchased the frequency to be able to implement 5G. Alas, he stated that network providers depend on manufacturers to release updated phones and modems that are able to withstand these new frequencies and bandwidths. According to Ortiz de Montellano, manufacturers had informed that they would release these electronics sometime during the third or fourth quarter of the present year, so telecommunications companies are still waiting for that event to occur.

Until then, the companies are striving to come up with new ways to improve their services and infrastructure through innovation.

“There’s a saying that goes ‘necessity is the mother of invention,’. There has been a lot of innovation and creativity in the companies that are operating here in Puerto Rico,” Romero said.

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“Ain’t No Stopping Us Now” FOMB continues to move its agenda forward

A Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

lthough technically speaking, the nominations process for the Financial Oversight and Management Board (FOMB) members is on hold, pending a decision by the U.S. Supreme Court on the matter, the federal entity has not let that stop it from continuing with its work.

In recent weeks, FOMB Chairman and FOMB Executive Director Natalie Jaresko have held various meetings with the newly installed Gov. Wanda Vázquez, who recently completed her first month in office after the tumultuous July that Puerto Rico experienced, which concluded with the resignation of former Gov. Ricardo Rosselló.

In a brief email to THE WEEKLY JOURNAL, Edward Zayas, spokesman for the FOMB, said the nominations issue has not hampered the entity’s work. “In terms of moving forward with the FOMB’s goals, the members are actively working regardless of the nomination process,” he said.

Zayas also disagreed with the assessment that President Trump has to re-nominate the current FOMB members again, if they are to

serve another three-year term, because the U.S. Senate did not hold hearings and approve the nominations that were submitted by Trump in June. The three-year term for the current FOMB members officially expired on Aug. 30.

“We understand that the nominations were submitted to the Senate and it is now up to the Senate to act upon them,” Zayas said.

He did not directly respond when asked if the current FOMB members are still -Economist Juan Lara willing to serve a second term if renominated by Trump.

“At this point we prefer not to speculate,” he said.

Meanwhile, the Oversight Board has recently announced that the restructuring support agreement (RSA) for the Puerto Rico Electric Power Authority (Prepa) now has the support of 90 percent of uninsured bonds and all Prepa bond insurers. Bond insurers Syncora Guarantee Inc. and National Public Finance Guarantee Corp. have now decided to join the RSA with certain Prepa bondholders and Assured Guaranty Corp.

“The addition of Syncora and National to the RSA provides significant certainty to the restructuring not only of Prepa’s bonds, but to the

transformation of Prepa to a modern, efficient power utility able to deliver clean, reliable and affordable energy to the people and businesses of Puerto Rico. The agreement with the bond insurers does not change the economic terms of the RSA,” the Oversight Board said in a statement.

Based on this RSA, the cut for Prepa credits is 32 percent.

In June, the FOMB announced that it had reached an agreement to restructure $35 billion in debt and other claims—representing nearly half of Puerto Rico’s $70 billion-plus debt load. Carrión has said in recent days that the government’s debt adjustment plan would be submitted to the court in a matter of weeks.

If the cuts are too small, which I believe they are, it is unjust for Puerto Rico. It’s a very heavy burden for us, especially after Hurricane Maria.

Varying Cuts for Creditors

The Oversight Board agreements with a host of other creditors includes cuts varying from 7 percent for those of the Sales Tax Financing Corp.

(Cofina by its Spanish acronym) and 45 percent for Government Development Bank bonds.

The cut for most of the General Obligation (GOs) credits is at 27 percent. However, a

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group of GO bonds issued in 2012 and 2014 and another for the Public Buildings Authority remain in litigation. These credits, totaling $6 billion, are “illegal” according to the FOMB’s claim, alleging that when they were issued, they exceeded the constitutional cap that debt service cannot go above 15 percent of the Puerto Rico government’s tax revenues. The case remains pending.

There was some confusion in the local media that GOs and other credits may have received a cut of 66 percent, but it seems many credits were lumped together and the outcome is still uncertain due to ongoing litigation.

Economist Juan Lara, who closely follows the Oversight Board’s work and the debtrestructuring process, said that until the U.S. Supreme Court issues a ruling on the constitutionality of the FOMB members’ nominations, the federal entity is in a “waiting” mode.

“They stay in their posts, but I understand it is an automatic stay,” he said to THE WEEKLY JOURNAL. “But they sure have been busy. I believe they are pushing their agenda forward, being very proactive. They are putting their pieces in play without knowing if they will stay. They are like preempting the court,” he added.

Lara said regardless of the top court’s decision, he believes it is highly unlikely that the FOMB’s work would be invalidated, as some creditors want. “I do not see that happening. They are not going to throw the baby out with the bathwater,” he said, noting that the adjustment plan is being finalized.

The University of Puerto Rico economics professor said he would have liked to see Puerto Rico’s creditors get a bigger cut. Overall, he said would like all creditors to get a 40 percent to 50 percent cut. “If the cuts are too small, which I believe they are, it is unjust for Puerto Rico.

It’s a very heavy burden for us, especially after Hurricane Maria,” he said.

Key Events Related to Promesa

June 30, 2016

Then-President Obama signs bipartisan bill into law. The Puerto Rico Oversight, Management and Economic Stability Act (Promesa) is aimed at staving off Puerto Rico’s default on $120 billion in debt and pension obligations, and jumpstarting the island’s economy after 10 years of economic stagnation.

Aug. 2016 With recommendations from

Capitol Hill, Obama appoints the seven members of the Financial Oversight and Management Board (FOMB), which was created under Promesa. José B. Carrión, the president and principal partner of HUB International, serves as the FOMB chairman.

March 2017 Natalie Jaresko, who was

Ukraine’s minister of finance from 2014 to 2016, is hired as the FOMB’s executive director.

May 2017

U.S. District Court Judge Laura Taylor Swain of the Southern District of New York is selected to oversee Puerto Rico’s restructuring process under Promesa.

The FOMB puts Puerto Rico’s central government, the Highways & Transportation Authority, Employees Retirement System and the Puerto Rico Electric Power Authority (Prepa) into Promesa’s Title III bankruptcy process. Debt backed by general-obligation bonds and the Sales Tax Financing Corp., or Cofina, are also put under Title III proceedings.

July 2017

The FOMB approves the debtrestructuring deal for the insolvent Government Development Bank (GDB).

Sept. 20, 2017 Hurricane Maria, a high-

end Category 4 storm, slams into Puerto Rico, causing massive devastation islandwide. The Puerto Rico government has estimated that Maria caused more than $100 billion in damages.

Nov. 2017

Judge Swain rules against the FOMB in its efforts to appoint U.S. Air Force Colonel Noel Zamot as the “chief transformation officer” for Prepa and reporting directly to the board.

Jan. 2018

Gov. Ricardo Rosselló unveils a privatization plan for Prepa’s power generation.

Feb. 2018 Judge Swain rules that special

revenue bonds do not have to pay debt service during bankruptcy.

March 2018

The GDB debt-restructuring agreement moves toward a 45 percent cut in the bonds’ value.

Aug. 2018

A deal is reached with Cofina bondholders for a 32 percent debt reduction and $17.5 billion in debt-service savings.

Jan. 2019

After an independent investigation commissioned by the FOMB, the board asked Judge Swain to invalidate more than $6 billion in debt, arguing that the debt “was issued in clear violation of the Puerto Rico Constitution.”

Feb. 2019

Overruling Judge Swain, the U.S. Court of Appeals for the First Circuit held that the FOMB members were unconstitutionally appointed because they did not go through the Senate confirmation process. President Trump and the U.S. Senate were given 90 days to validate the current FOMB members or select new appointments.

Aurelius Capital Management sued in 2017, arguing the FOMB was unconstitutional, while Assured Guaranty filed a similar complaint in 2018.

June 18, 2019

Trump re-nominates the seven members of the FOMB until their terms expires. The U.S. Senate has yet to approve any of the nominations.

Aug. 30, 2019 The three-year term of the FOMB members expired.

Oct. 15, 2019 The U.S. Supreme

Court is scheduled to hold a hearing on the constitutionality of the FOMB members’ nominations.

FOMB Executive Director Natalie Jaresko > Photos Archive/Carlos Rivera Giusti

Sources: The Government of Puerto Rico, FOMB, Bond Buyer and Center for International Governance Innovation

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The Convention Center hosted 417 events during the fiscal year that ended last June. >File

Convention Center Reports Record Number of Visitors Nearly $16 million to be invested within the next five years Giovanna Garofalo

T

ggarofalo@wjournalpr.com

@giopgarofalo

he Puerto Rico Convention Center, located in the Convention District of San Juan, received a record 644,000 visitors in the fiscal year (FY) 2018-2019, which ended last June.

Jorge Pérez, general manager of AEG Facilities—the private company that manages the Convention Center via a publicprivate partnership (P3)—told THE WEEKLY JOURNAL that this is the highest number of visitors that the center has received since its inception in 2005. Compared to the previous 13 years, FY 2018-2019 saw 26 percent more visitors

than the average in that timeframe.

Puerto Rico Convention District Authority (CDA), “This has a direct correlation to the higher stated that the public corporation will invest number of events. We had 417 events, which in roughly $10 million within the next five years to comparison to the continue updating the average in the previous center. This investment 13 years of the will mostly be on Center, is a 21 percent new carpets, lighting upsurge,” Pérez equipment and a solid informed. telecommunications AEG Facilities infrastructure, which took the reins of the García explained is “the Convention Center’s core of what we offer operations in 2016. here at the center.”

Since then, the García explained -Jorge Pérez, general manager company has invested that the CDA is in nearly $5.7 million charge of all capital of AEG Facilities in the public facility, improvements in the which includes carpet Convention Center, renovations, repainting the interior of the structure but that AEG Facilities handles operations and the and more. local marketing of the center. Meanwhile, Discover “This offers the visitor a highly attractive option Puerto Rico, the island’s destination marketing to come here for any event, and we have multiple organization (DMO), advertises the Convention types of events,” he said.

Center at a global scale.

Noelia García, the executive director of the García stressed AEG Facilities’ role in boosting

We had 417 events, which in comparison to the average in the previous 13 years of the Center, is a 21 percent upsurge.

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the Convention Center.

“The [CDA] has delegated the operation of a public structure to a private company and that alliance between the government and the private company is what helps reach the numbers that we are witnessing. Delegating that operation to private expertise was spot-on, and identifying AEG was highly spot-on,” she stated.

In fact, for the first time in the Convention Center’s 14-year history, the facility ended last fiscal year with a “superávit,” which means a surplus in Spanish. Pérez said that the typical model of a convention center—internationally, not just in Puerto Rico—doesn’t typically allow for surpluses. Specifically, García said that the economic models for this type of venue “are always risky in terms of revenue versus expenses.”

Moreover, a portion of this superávit will be reinvested in capital improvements, García stated.

Both Pérez and García stated that the Convention Center’s mission is to impact the tourism industry by means of attracting hotel bookings through events. This, in turn, boosts restaurants, street vendors, tourism guide companies, travel services and more. García also noted that this also has a positive effect on other areas of Puerto Rico and not just the Convention District in San Juan, given that some of these visitors venture to other municipalities and attractions.

“It is important to highlight the correlation

that the groups and conventions sector has with the leisure sector. When you have 3,000 or 4,000 delegates that are here in the Convention Center, that’s 3,000 or 4,000 people who... become ambassadors for Puerto Rico when they leave,” Pérez said.

Large-Scale Events Underway

As executive director of the CDA, García is also a member of Discover Puerto Rico’s Board of Directors. She noted that one of the DMO’s most successful achievements concerning the Convention Center was securing the facility to host the 2020 World Summit of the World Travel & Tourism Council (WTTC), which will take place from April 21 to 23 of the upcoming year.

Brad Dean, the president of Discover Puerto Rico, previously informed THE WEEKLY JOURNAL that the estimated economic impact of past summits ranges between $4 million and $8 million.

In addition to this event, the Florida-Caribbean Cruise Association (FCCA) is hosting an event at the Convention Center this October.

“That [event] is very important because [the FCCA] made a commitment with Puerto Rico to be here for four years. This would be the second year out of a four-year commitment and the top executives of every major cruise line will come, so it is a week with a lot of business for Puerto Rico,” Pérez said.

Furthermore, García explained that both the

WTTC and the FCCA conventions are substantial accomplishments for the tourism industry because these companies represent “influencers” in the sector. She said that by operating these conventions effectively, Puerto Rico would showcase to the world that the island “is not only open for business, but that it is a spectacular destination.

“Everything on the way is good news and it is very important for Puerto Rico to know this because what this does—for the groups and conventions sector to move the way it is moving and with the expectations that we have—is that it creates expectations for economic development. It is one of the pillars with the most growth potential in Puerto Rico and we are heading in a good direction,” García affirmed.

District Live! Soon to be Inaugurated

In addition to investments in the Convention Center and upcoming events, the CDA is in the process of inaugurating District Live!, which will be an entertainment venue featuring an assortment of establishments.

The grand opening will take place on Dec. 2019, while its second and third phases—including more features—will be completed during the first trimester of 2020.

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Economic Activity Index Shows Furtherance

Economists caution it could be a blip, but the Economic Development Bank anticipates a positive outlook

W Cynthia López Cabán

clopez@wjournalpr.com

@cynthia_lope

hile the July economic activity index (EAI) reflected a modest growth after six consecutive years of slips, economists cautioned against the perils of excessive economic optimism and called for the acceleration of reconstruction efforts, stalled almost two years after Hurricane Maria wrecked the island.

Last Thursday, the Puerto Rico Economic Development Bank (EDB) released its monthly report, acknowledging mixed results yet predicting a surge in the economy, relying primarily on the arrival of pending disaster aid.

The report revealed that in July, the island’s EAI reached 120.5 points, about 0.1 percent higher compared to June, but 1 percent less in comparison with the same period in 2018. This is the second decrease or negative growth after 11 months of consecutive increments.

EDB President Luis C. Fernández Trinchet explained that in cumulative terms, the EAI average for the first seven months of the current year settled on 120.9, about 1.7 percent higher than the same period in 2018 when the island was recovering from the havoc caused by Hurricane Maria.

“The EAI cumulative average for fiscal year 2019 was 121.2, which shows a growth of 5.8 percent versus fiscal year 2018. Also, the result of the EAI growth rate for fiscal year 2019 is the first increase after six consecutive years of reductions,” Fernández highlighted.

He also said that Gov. Wanda Vázquez is implementing initiatives that should boost economic activity “like never before.” The “positive” impact of those efforts, Fernández anticipated, should be reflected in future reports.

“The arrival of funds from the Community Development Block Grant Program (CDBG-DR); the implementation of economic development strategies for small and midsize businesses;

government efforts to boost the Opportunity pointed out Sergio Marxuach, policy director and Zones program; and other comprehensive rent and general counsel at the Center for a New Economy. sale housing programs, as well programs meant The EIA offers a short-term projection of to provide assistance to potential homebuyers the economy. It measures non-farm payroll who work on critical tasks, should exert a positive employment, electric power generation, gasoline influence on economic consumption and activity,” he insisted. cement sales.

Economists As part of the Cautious analysis, Marxuach Three economists and Argeo Quiñones, consulted by THE an economist and WEEKLY JOURNAL professor at the concurred that the University of Puerto economy was still Rico’s Río Piedras showing signs of Campus, argued that weakness and that the the index is slightly slight fluctuation in the below the level of index wasn’t enough for that before Maria, an the economy to regain indication the island - Sergio Marxuach, Policy Director its strong footing. has not returned to and General Counsel at the Center for “I think EDB´s the point prior to the a New Economy interpretation is too hurricane, despite the optimistic. The index aid received during the level has remained last two years. close to 120 (points) since Jan. 2019. According to “That doesn’t mean the economy is growing. the index, economic activity is stagnant. In other It means that it’s reaching pre-hurricane values. words, it’s not growing or decreasing. It’s flat,” Before Maria, we were engulfed in a crisis, in a

The economy is showing mixed signals, so we need to hurry up and get the reconstruction projects underway to avoid falling into negative territory again.

Sergio Marxuach noted the need to accelerate the reconstruction process in order to maintain the upward trend. >Archive

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long, prolonged and deep economic recession since 2006,” Quiñones maintained.

Following this reasoning, the economist stated that the 5.8 percent increase should be interpreted as a return to recession mode, but not out of the prolonged economic crisis worsening with the austerity measures imposed by the Financial Oversight and Management Board. “A return to normalcy would be to go back to the period before the beginning of the recession in 2006,” Quiñones insisted.

José Alameda, an economist and professor at the University of Puerto Rico’s Mayagüez Campus, agreed that the economy is showing mixed signals but he tossed another variable into the conversation: a concern with the methodology used to calculate the index.

In other words, the differing symptoms could come from a frail economy, but could also reflect the bias or distortion of an inaccurate method.

Alameda, who worked with the Planning Board when the agency developed a similar index, questioned whether some of the variables used to calculate the EAI are obsolete.

For instance, he argued that the decline in cement sales, power generation and gasoline consumption could not necessarily be interpreted as negative economic activity indicators.

“The cement sales variable is problematic since it measures construction activity, and our economy has moved into the service and tourism industries... And the construction sector is changing. Now we use more steel and less cement.

So you can build hundreds of structures but will use less cement. Certainly, that distorts the index’s short-term projections”, Alameda said.

The same principle applies to gasoline and electricity. People could be adopting an environmentally conscious lifestyle and buying fuel-

Economist Argeo Quiñones argued that before Hurricane Maria the island had been engulfed in a recession since 2006. >Josian E. Bruno Gómez

efficient vehicles or household goods. In this case, a drop in power generation or gasoline sales can’t be attributed to less economic activity because the economy might be growing in other areas. “We have to look at other variables to get a clearer short-term look of the economy,” Alameda insisted.

But there is hope among the mixed bag of results.

Employment, a critical economic indicator according to economists, is up. Total nonfarm payroll employment for July 2019 averaged 876,200

Economic Activity Index reflects a slight growth after six years of slips. >Archive

employees, an upturn of 0.6 percent and indicative of an increase of 1.6 percent from the previous year.

“Non-agricultural employment seems to show an upward trend that has been sustained for a significant period. That’s positive. However, the other three indicators show static or downward trends. In my opinion, the economy is showing mixed signals, so we need to hurry up and get the reconstruction projects underway to avoid falling into negative territory again,” Marxuach urged.

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/ Wednesday, September 11, 2019

For Harvard Business School Professor Thomas DeLong, leadership in crisis means lifting up your team. >Gabriel López Albarrán

Leadership in Times of Crisis: The Case of Maurice Cheeks Harvard Business School professor: “Doing the right thing well” Rosario Fajardo

I

rfajardo@wjournalpr.com

@RosarioWJournal

n 2003, during an NBA home game in Portland, Ore., between the Portland Trailblazers and the Dallas Mavericks, an extraordinary event took place: a coach became a hero.

As is usual before sports games, it was time for the “Star Spangled Banner,” the U.S. national anthem, to be sung, this time by a young lady, 13-year-old Natalie Gilbert.

She began singing, but after about 15 seconds, she forgot the words and stumbled. She composed herself, tried to restart and looked around.

Enter Maurice Cheeks, the head coach for the Blazers. He stood next to her, put an arm around her for comfort, and started to sing quietly, as Natalie continued. “Come on, come on,” he said, as he sang the rest of the song with her. The crowd of 23,000 people, including the players and coaching staff of both teams, sang the song, helping her along.

Natalie finished the song on a strong note and was given a hug by Coach Cheeks. For those of us watching—including your correspondent, who is from Portland and an avid Blazers fan—we could

see Natalie mouthing the words, “thank you,” as he Parson was hitting his numbers and was definitely hugged her. a high performer, but concerns were raised about This was a seminal moment for Cheeks, a wellthe impact on the team. What about sustainability known NBA player and coach, who will be forever for the firm? Would good people quit? What kind be remembered for “rescuing” Natalie. of organization do we want to create? What signal During a moment of crisis for a young lady, he would be sent if he were promoted? did the right thing and helped her, even though The answer for Morgan Stanley, after a thorough he was also probably evaluation, was no, you nervous about singing. do not promote Parson.

When the pressure However, in the end, was on, he had the Parson decided to stay courage to step up. with the firm and was This was among given another boss, the examples of who could “manage” leadership in times of him and help him crisis given by Harvard adapt to the corporate Business School culture of Morgan Professor Thomas Stanley. Managing, J. DeLong during a DeLong said, goes recent presentation beyond giving orders, before the Latin but also includes a American Business process of connection -Harvard Business School Council (CEAL by its with staff so that they Professor Thomas J. DeLong Spanish acronym) in grow as individuals and San Juan. professionals.

DeLong also “Leadership is highlighted the famous Harvard Business School personal. What happens to those around you case of “Rob Parson at Morgan Stanley” (1998) in when they are with you?” he asked rhetorically. which the question posed was quite simple: Do you “I challenge you to think about who do you want promote someone who gets the job done and is to be? And more specifically, what is the point of highly productive, but who has “real rough edges… you?” a screamer… who is verbally abusive” to his coFor DeLong, leadership in crisis means lifting workers, as DeLong explained. up your team. In other words, we can all do what There were several considerations at stake.

Coach Cheeks did: “Doing the right thing well.”

Leadership is personal. What happens to those around you when they are with you? I challenge you to think about who you want to be and, more specifically, what is the point of you?

13

www.elvocero.com/revistas/mirame

< The Weekly Journal > Wednesday, September 11, 2019

It's your moment to shine.

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/ Wednesday, September 11, 2019

Puerto Rico Ranks Lowest in Health Care Costs Among Urban Counterparts in the States 31.3 percent lower than the U.S. national average

T Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

he Puerto Rico Statistics Institute has released its Cost of Living Index (COLI), which revealed that health care costs on the island are 31.3 percent below the United States average, among other details.

In the latest report, Puerto Rico ranked 298 of 298 in health care costs, making it the most inexpensive area in this category. Compared to the U.S. index average of 100.0, the island had an index of 68.7.

Meanwhile, the General Price Index (GPI) used to measure local values revealed that health care costs had an index of 155.089, a slight decrease from the 155.166 revealed in the same report for June 2019. Alas, the index was 1.1 percent higher compared with July 2018, with noticeable increases in the subgroups of professional services (1.6 percent) and health care products (2.4 percent).

Some categories retained roughly the same index in both June and July 2019, while others showed upsurges or slips. However, the GPI increased by 0.3 percent from July 2018, when it had an index of 119.923, to July 2019, when the index was 120.237.

As a point of interest, the Statistics Institute observed that the purchasing power of the consumer dollar remained at 83 cents from June to July 2019, in contrast to its value of $1.00 on December 2006. Although this value has been the same since May 2019, there was a slip between January, at which point the purchasing power was 85 cents, and the timeframe of

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/ Wednesday, September 11, 2019

February to April, when the purchasing power of the consumer dollar was measured at 84 cents.

Meanwhile, the average value in 2018, both natural and fiscal, was 84 cents.

Categories That Showed an Increase

The Institute’s July 2019 GPI analyzes the indexes of multiple categories and compares them to the indexes of the previous month. In that report, the Institute noted that the categories of education and communication and foods and beverages reflected higher indexes in July.

The education and communication index showed the highest increase, being 0.6 percent greater than the one reported in June. The GPI observed that the rise documented on the subgroup of education, which included the components of enrollment, monthly payment and childcare, was 1.2 percent higher. Overall, when compared with the GPI for July 2018, there was a growth of 0.9 percent.

Moreover, the foods and beverages category experienced a 0.2 percent hike from June of the same year. This change was reflected in the subgroup of ‘foods in general’, with 0.2 percent.

The Statistics Institute noted that this was caused by the fruits and vegetables component, which increased by 3.9 percent, which the Institute mainly attributed to higher lettuce prices.

When comparing the GPI for July 2019 with the GPI for the same time last year, the Institute observed a 0.3 percent upsurge in this category.

This change was noticeable in the alcoholic beverages subgroup, which grew by 2.2 percent.

higher, while shelter and home appliances and services grew by 0.8 percent and 0.3 percent, respectively.

The entertainment index saw a minimal reduction—113.354 in July compared to 113.410 in June. The subgroup of entertainment articles lowered by -0.1 percent in both June 2019 and July 2018, whereas the entertainment services index was 0.1 percent higher than June 2019 and 1.6 percent higher when compared to July 2018.

Lastly, other articles and services reported an index of 127.537 in July 2019, partially lower than the June 2019 index of 127.538, but 2.7 percent higher than the July 2018 price index. Compared with July 2018, the other expenses subgroup decreased by -3.2 percent, while personal care grew by 3.4 percent, and tobacco and related products increased by 1.2 percent.

Puerto Rico’s COLI Rankings

While the GPI provides a thorough comparison between monthly and yearly index performances in Puerto Rico, the Institute measures the COLI by using a methodology from the Council for Community and Economic Research that allows students, companies, individuals, researchers and government entities to compare the cost of living in Puerto Rico with the cost of living in 297 other urban areas from mainland U.S., as defined by the U.S. Census Bureau.

The COLI divides categories somewhat

differently from the GPI—into grocery items, housing, utilities, transportation, health care, and miscellaneous goods and services. The most recent COLI report is from the first quarter of 2019.

Although Puerto Rico ranked the lowest in health care, other categories revealed high or moderate rankings. The highest was utilities, with a rank of three out of 298, for an index of 157.2. The second highest rank was in grocery items, with 16 out of 298, or an index of 120.4.

Housing was ranked 153 with an index of 85.9; transportation ranked 189 with an index of 95.4; and miscellaneous goods and services ranked 205 with an index of 95.2.

Leira M. Nogué Souffront, statistics projects assistant for the Institute, explained to THE WEEKLY JOURNAL that the methodology used for the COLI is designed to compare the cost of maintaining an appropriate standard of living for moderately affluent professional and managerial households in the different areas that participate for each specific quarter.

“That is, the COLI is not comparable to the average standard of living in Puerto Rico, but rather corresponds to a particular standard of living and it is not advisable to measure price hikes through time with this. It is worth noting that the tax burden is not considered in the COLI’s calculation,” Nogué stated.

For more information about the SI’s monthly reports, visit www.estadisticas.pr.

Categories That Showed a Decrease

Not all indexes grew in July 2019. The categories that reported lower indexes were clothing and transportation.

The clothing price index slipped by 3.1 percent compared with June 2019, with lower indexes on all six subgroups. The subgroups with the most significant changes were men and boys’ clothing (-5.5 percent), and footwear (-5.0 percent). All subgroups also revealed lower indexes compared with the GPI for July 2018, also most noticeably on footwear (-7.6 percent), and men and boys’ clothing (-6.1 percent).

Transportation registered a -0.1 percent drop from June 2019. Although public transportation was 1.9 percent higher, private transportation was down by -0.1 percent, primarily because of the component of motor fuel (-1.0 percent).

The changes are more drastic when compared with July 2018. The private transportation subgroup index was -0.7 percent lower in July of this year, and the public transportation index decreased by -17.4 percent.

Categories That Retained Their Numbers The lodging, entertainment and other articles and services categories did not show significant changes compared to the GPI of June 2019.

The lodging index in July was 114.453, only slightly higher than the previous month’s, 114.428. However, the fuel and other utilities subgroup slipped by -0.1 percent. Compared to July 2018, this subgroup was 1.7 percent

Data provided by the Statistics Institute. >The Weekly Journal

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/ Wednesday, September 11, 2019

Studying the Possible Effects of Act 20 and 22 Based on government data and a study realized by Estudios Técnicos Inc., conservative projections are made that point to some economic generation until the year 2035

I

Claudia Guerrero Negrón

newsroom@wjournalpr.com

@cguerreronegron

n a non-government commissioned study done on the economic impact of Act 20 and 22, it was estimated that by 2019 there would be a total of 3,354 decree holders combined, meaning the amount of individuals attracted to the island would generate 25,285 new jobs. In ten years, by 2029, the study projects an increase to 9,349 decree holders, generating 77,680 jobs, with an injection of $3,182,017,492.00 into the total payroll of all employment generated by the two incentive laws.

Gustavo Díaz, a 24-year-old entrepreneur, has been one of the very few to go beyond and further investigate the economic impact Act 20 and 22 would have on the island, specifically looking at real estate gains and employment generated.

Using the very little data provided by the Puerto Rico government and a study done by Estudios Técnicos, a private research and strategic planning entity, the young entrepreneur was able to provide highly conservative economic forecasts until the year 2035, indicating what would be the projections of the total percentage of impact both laws would have on Puerto Rico’s GNP. The study presents a steady increase in the percentage of the contribution to the total Puerto Rico GNP in the next 16 years, but there are many variables to point out. The purpose of these laws was to attract U.S. corporations to establish operations in Puerto Rico, offering a fixed income tax rate of just 4 percent for companies established under Act 20, and a 100 percent tax exemption rate for individual investors to relocate on the island under Act 22, among many other incentives.

It is important to note that this study was

conducted in 2016, and since then, these laws have Going into it, one of the most important factors been amended, meaning these estimated numbers for Díaz to figure out was “how are we retaining represent forecasts based on data that has not the wealth attracted and created, how much been updated with the July, 2019 amendments. money are they spending on real estate and what Act 20 and 22 were enacted in 2012 and later is the size of our real estate economy in Puerto amended in 2014, making it a requirement for Rico?” decree holders to purchase permanent property Before actually conducting the study, in Puerto Rico and hire Puerto Rican Díaz investigated the Section 936 individuals in their companies. In 2017, incentives and the operation the laws were amended again to ‘Manos a la Obra’, a plan remove that requirement and that was used to transition in July, 2019 the requirement Puerto Rico from an was added once again with an agriculture economy into a increase in the required amount manufacture economy in of donations that must be made 1947. to non-profit organizations.

“The two biggest errors An important finding was were that most of these that in 2016 there was a sharp incentives gave out land increase in decree holders, for free or for very cheap. with 225 new decree The wealth that was holders, completing an attracted wasn’t >Gabriel López Albarrán amount of 728 decree retained. Reading up holders compared on Act 20 and 22 I saw to 503 in 2015. The that the same sort of average person was rhetoric, the same sort purchasing property of wording was used, for an average of $1.5 as it was used in 1947,” million under Act 20. said Díaz.

“When you look As an example of at the study done by a booming economy, Estudios Técnicos, Díaz gave Shenzhen, almost 40 percent who actually used the of Act 20 decree very same economic holders made multiple model that Puerto investments. Assuming Rico used in 1947, the investments were when it was turned of the same quantity, into one of the world’s we can state that very first Special there was around Economic Zones, - Gustavo Díaz, Young $934,000,000.00 setting a precedent Entrepreneurs of Puerto Rico Founder injected that year in for the world in real estate alone,” said terms of transitioning Díaz. economies.

An argument could be made that a possible “Shenzhen is now considered the economic reason for this sudden upsurge in decree holders power house of China, with a $272 billion GDP is due to the 2014 amendment taking away every single year, almost three times that of Puerto the requirement for individual investors to buy Rico’s,” said Díaz. permanent property on the island. Even though this generated a considerable amount of money in 2016, the majority of real estate investments were through leasing, meaning temporary investment.

“When you put money in land, that’s the best way to preserve wealth,” said Díaz.

What drove me to come back here is, to an extent, if we built the model in which the human race industrialized in the past seven decades, and we’re attempting to do it again, do I want to be part of that history?

Or do I want to just run aloof?

The answer is, I want to be part of that change.

/ Wednesday, September 11, 2019

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How MicroJuris Built a Legal Ecosystem

From a database to a space of debate, this local company has expanded its business model

I

Cynthia López Cabán

clopez@wjournalpr.com

@cynthia_lope

t started as a legal database. But 30 years later, MicroJuris has morphed into an ecosystem that promotes legal reflection and analysis, as well as access to its vast digital collection.

From recent laws, regulations and jurisprudence; to a podcast about current affairs and online continuing-education courses for lawyers and policy-making enthusiasts, the website continues to be a useful research tool, while expanding the discussion of legal issues Thirty years ago, Miguel Marxuach and Fernando Lloveras founded MicroJuris. >Photos Courtesy MicroJuris beyond the confines of the judicial world.

“The original model was aimed at the legal inner workings of the Puerto Rico Oversight, government information, MicroJuris also provides a profession. Over time, however, we’ve broadened Management and Economic Stability Act (Promesa) varied selection of free content. our scope and have made our products more that provided Puerto Rico with a bankruptcy-like “We have designed it so that more people, who accessible to other audiences,” MicroJuris’ CEO process for its $70 billion-plus debt load, can are not connected to the legal profession but have Ataveyra Medina Hernández explained to THE browse around the digital library, read a need or an interest in legal issues, can visit our WEEKLY JOURNAL about the evolution of articles on MicroJuris’ legal blog website and find current and relevant content that the company. and even take an online course. is more user-friendly,” Medina described to THE Founded in 1989 by Miguel Archived documents WEEKLY JOURNAL. Marxuach and Fernando appear in their original Following its mission to engage and promote Lloveras, MicroJuris provides its language. Medina noted legal debates, the platform recently published all subscribers access to a digital that by statute, all enacted the laws enacted by former Gov. Ricardo Rosselló library that includes all local and laws in Puerto Rico have before his resignation on July 2 and examined federal laws, Puerto Rican and to be divulged in Spanish the impact of the recently approved legislation. federal jurisprudence, the Code and English, but the The 40-year-old politician bowed out after weeks of Federal Regulations, all state government doesn’t always of social unrest due to a leaked chat between and federal bankruptcy cases, comply with this rule. Upon him and his inner circle. Outrage erupted due to local executive orders, request, the service can the homophobic and misogynistic nature of the rules of procedures, provide its users with conversations and allegations of government arbitration rulings document translations. corruption. Rosselló was the first governor to and local, federal and The platform also resign in the history of Puerto Rico.

Spanish doctrine. has a legislative To address the ramifications of the historical For example, a tracking service. “It is moment, MicroJuris dedicated several episodes researcher or law clerk like having your own of the podcast “La ley en tu vida” (The law in your working on a Fourth lobbyist at the Capitol, life) to dissect the political and constitutional crisis Amendment case can monitoring and giving created when former Resident Commissioner search the database you information about Pedro Pierluisi was sworn in as governor, an -Ataveyra for federal and local the process and the appointment later rendered unconstitutional by Medina Hernández, MicroJuris’ CEO jurisprudence related development of the the Puerto Rico Supreme Court, and promoted an to this constitutional legislative measure. open discussion about ethics and journalism amid protection against You can customize and the publication of the polemic chat. unreasonable searches and seizures, but can program the system to receive alerts,” Medina said.

“The law is not something that should be also study how the state of Florida has handled But the website is not an exclusive club for its exclusive to lawyers. It is something that should these cases. Also, a person interested in the paying subscribers. Concerned with access to concern everybody,” Medina said.

The law is not something that should be exclusive to lawyers.

It is something that should concern everybody.

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/ Wednesday, September 11, 2019

What if the $45 Billion Never Get Here?

We Must Start Exploring Alternate Scenarios Before the hurricane, Puerto Rico’s economy had spent 10 years in a depression

O

Inteligencia Económica

n Sept. 20, 2019, it will have been two years since Hurricane Maria made landfall in Puerto Rico. Since then, the local economy has gone from being devastated after the hurricane, to showing moderate growth, to the current state, in which it is showing a weakening of productive activity.

It is essential however, to put things in context.

Before the hurricane, Puerto Rico’s economy had spent 10 years in a depression followed in 2016 by the assignment of a federal oversight board meant to oversee a process of debt restructuring under the Promesa law. And so, three crises embattled Puerto Rico at once, a severe depression, a territorial bankruptcy and a hurricane, the combination of which presented the island’s economy with a historic challenge.

Federal Aid Provided

At Inteligencia Ecónomica Inc., we have estimated that Puerto Rico has received an estimated injection of $19 billion in capital since Hurricane Maria impacted the island. Of these, we estimate that $5.4 billion have been FEMA funds, $1.2 billion belong to the SNAP program, $3.2 billion are additional Medicare funds and $6 billion have been paid by insurance companies.

The Small Business Administration (SBA), loaned upwards of $2.2 billion while also providing $4.96 billion meant for the rehabilitation of the power grid.

These funds were an essential part of the temporary dynamism that occurred between 2018 and the first half of 2019. However, as the money meant for recovery efforts started running out, which started happening in March, the economy has experienced a deceleration.

Right now, however, the main issue is whether U.S. Congress will indeed disburse the $45 billion it had already approved for the island’s recovery efforts.

Federal aid had been at a standstill since before the collapse of Gov. Rosselló’s administration due to federal and local bureaucracy. Clashes between President Trump’s government and the local administration further hindered assistance. Trusted contacts within Congress have told me that the future of the recovery >Archive funds is uncertain.

The level of discomfort between Congress and the local government, as well as politicians in general, is very high, and it doesn’t end there as President Trump’s advisor’s also question whether the local government is capable of using the money effectively.

President Trump’s public comments about the island as an increasingly corrupt place send a message not only to Puerto Rico, but also to the Republican Senate and the minority in the House, which is also Republican.

Being at Odds with the Fiscal Board Doesn’t Help Matters

The disagreements that have ensued between the local government and the Fiscal Board when it comes to Promesa haven’t done much to help foster an environment of collaboration that would appease Congress into providing more help.

It just so happens that the Fiscal Board’s economic plans, including the ability to pay back the debt, hinders on those $45 billion which they expect will kick-start the economy and increase collections.

Due to these issues, it is time to start seriously pondering alternate plans shall the funds not arrive as promised. The government and the private sector have placed their faith on federal funds whose disbursement seems further and further away with each passing day.

If it comes to be that the federal funds are never disbursed, the economy may end up as the Fiscal Board projected originally, with the gross national product (GNP) contracting during the next few years. This projection by the Fiscal Board, and the austerity measures that they have recommended shall this macroeconomic scenario come to be, is one of zero federal aid and very little private investing.

This scenario would mean that Puerto Rico would be totally dependent upon the possibility of returning to the global markets once we are out of debt (Title III of Promesa) or having to finance the debt through private funds.

For more information about this analysis and access to our database of over 100 economic indicators, please access our site, www. economiapr.com or call (787) 740-0398.

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/ Wednesday, September 11, 2019

By Rafael (Tatito) Hernández

By Anthony Maceira

House of Representatives Minority Leader

A

s I wrote these lines, a famous Aesop’s fable came to mind – The Old Man and his Sons. As the old man nears death, he calls his sons and gives them a lesson in the need for unity.

He teaches them that while each son individually, if acting alone, can be overcome and overpowered; combined, joining forces together, they are invincible no matter how strong the opponent is. The moral drawn from the fable is that “brotherly love is the greatest good in life and often lifts the humble higher.”

In key moments in our history, we have proven this fable to be right.

Vieques was being used as a naval training range since 1941 by the U.S. military.

Our determination to have the U.S. Navy end its military operations in 2001 and leave the island completely in 2003, is a good example of what can be accomplished when the people of Puerto Rico, in a united front, join together for a common good.

Another example is how we together petitioned for the Central American and Caribbean Games Organization to select Puerto Rico in 2010 for the games held every four years.

Thirty-three countries from the region competing in 32 sports were represented in Mayagüez at the opening ceremony. Sixteen municipalities in the western part of Puerto Rico benefited from this event.

Today, due to special circumstances, we have the same opportunity to

Unity is Strength work together toward a common goal. The economic recovery of Puerto Rico depends on our ability to attract and properly invest the Community Development Block Grant – Disaster Recovery (CDBGDR) federal funds. The public and private sector have joined forces to convince the federal government that bureaucratic barriers that severely detain the muchneeded investment in priority projects, must be relaxed or eliminated. With only one voice, we are seeking an immediate solution to the fact that many homeowners affected by Hurricane Maria do not possess titles to their properties and, under such circumstances, FEMA’s regulations do not permit the agency to disburse funds for their reconstruction.

Regulations must therefore be amended to accommodate this highly unusual and particular condition and allow the funds to flow.

Lastly, again together, we are requesting from FEMA that it amend its regulations that require, only for Puerto Rico by the way, that an intermediary be used whenever a project is to be funded under the Stafford Act. Such a requisite is not required by the Act as approved by Congress.

Like Aesop’s fable, as we unite purposes and forces for the recovery of Puerto Rico, our chances of success are greater. History has shown us many failures by pursuing individual goals and not the common good. United under one voice, we are stronger.

Puerto Rico demands action now and together we will succeed.

Executive Director of Puerto Rico Ports Authority

The Facts Behind the Container Stevedoring Services

T

he Agreement that would enable Luis A. Ayala Colón (LAC) and Puerto Rico Terminals (PRT) to form Puerto Nuevo Terminals (PNT), has been present in public discussion. As often occurs with these matters, much confusion and different public opinions have emerged. The Puerto Rico Ports Authority (PRPA) does not regulate these joint agreements. PRPA is merely the landlord for the two entities that held lease contracts prior to the agreement. Given the circumstances I find it important to clarify some facts about the approval process. This piece does not advocate either for or against the Agreement; the intention with these words is to merely state the facts surrounding the Agreement and why the PRPA, at this moment, is not in a position to deny a legally authorized entity the right of doing business in Puerto Rico.

The Federal Maritime Commission (FMC) is an independent agency created in 1961 with the aim of ensuring a competitive and reliable international ocean transportation supply system that supports the U.S. economy and protects the public from unfair and deceptive practices.

Amongst its objectives, the FMC reviews and monitors agreements between ocean common carriers and marine terminal operators (MTOs).

It’s very important to highlight this given that the United Sates Congress, through the “Shipping Act of 1984”, held that cooperatives agreements will take effect immediately after 45 days, unless the FMC prevents its execution. The FMC can extend that period if it presents a “Request for Additional Information”.

That was precisely what

happened with the PNT Agreement.

The FMC evaluated and requested additional information about the agreement and PNT, entity that would operate a marine terminal, provide container stevedoring, terminal and related services in the Port of San Juan. PNT will then acquire the leases, sub-leases, transfers, cranes, yard equipment and other related assets from LAC and PRT. According to the Shipping Act, in order for the FMC to prevent the execution of a cooperative agreement, it must find evidence of: reduction in competition, unreasonable reduction in transportation service or an unreasonable increase in transportation cost or that it substantially lessens competition in certain covered services.

Regarding the PNT agreement, the FMC, by a majority of its members, found that although those who oppose the agreement presented “concerns”, this was not sustained by evidence that would enable the Commission to pursue preventing the agreement by presenting an injunction in federal court.

However, the FMC seeks to address some of these concerns regarding the future effects of the Agreement during the coming years. The remedy voted on by the FMC was to implement an enhanced monitoring regime with extensive disclosure of business and marketplace information required, amongst other investigative hearings and special reports orders.

In conclusion, the PNT Agreement does not eliminate shipping companies and has the objective to increase efficiency in the container stevedoring services in the Port of San Juan.

Nevertheless, the FMC has approved some monitoring mechanisms that would prevent unfair effects in the market.

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/ Wednesday, September 11, 2019

As Chance Would Have It: Unexpectedly on El Chapo’s Legal Team Meet Mariel Colón Miró, the Puerto Rican attorney and only woman on the defense team of the Sinaloa cartel’s notorious leader

B

Cynthia López Cabán

“

clopez@wjournalpr.com

@cynthia_lope

rrrrruuuunnng!”

The cell phone rang in the stillness of a silent room. On the other end, a woman’s silvery, clear voice introduced herself, “Mariel Colón Miró. Sorry, I don´t have good service where I am right now,” she said after failing to answer my initial call.

After a brief introduction, questions began to flow. Taking a minute from the hustle and bustle life she leads in New York, the lawyer sat to share stories about her upbringing and life on the island.

She is warm and enthusiastic in a way that at times minimizes the coldness of the long-distance call.

She’s also discreet, never volunteering more than the essential elements of an anecdote..the very way a clever attorney carefully crafts a crossexamination meant to draw out precisely what he wants.

At 26, her name is buzzing in and out the legal sphere. Since joining the New York Bar a year ago, she has represented two of the most notorious defendants in recent criminal law history: the leader of the Sinaloa Cartel, Joaquín “El Chapo” Guzmán, and the financier and convicted sex offender Jeffrey Epstein, who committed suicide last month.

When talking to Colón Miró, it seems her short life has been shaped by random acts of choice and chance. Worried about the shrinking job market in Puerto Rico, she transferred from the University of

>Courtesy

Puerto Rico’s Law School to Hofstra University´s Law School and volunteered at the Criminal Justice Clinic even though she planned to study corporate law. While waiting for the bar exam results, she replied to a dull Craigslist post for a Spanish bilingual paralegal only to end up working for El Chapo’s and Epstein’s legal teams. Chance took her all the way to a room where she bore witness to Epstein’s will just two days before his suicide.

There is more. El Chapo’s name didn’t ring much of a bell when she took the paralegal position. “I was told it was a position working for one client, a conspiracy, and drug smuggling case. Once I got the job, I asked the client’s name. It sounded familiar,” she chuckled. “I googled the name and was surprised. I thought somebody was fooling around with me.”

Her first meeting with Mr. Guzmán, as she calls him, was another set of accidental events. On

the way to the MCC, the lead attorney lost her wallet. Without ID, she wasn’t allowed to enter the federal jail. Alone and without hesitation, Colón Miró walked into the visiting room and introduced herself to the notorious criminal who once befriended actress Kate del Castillo.

“We started talking. From that moment on, our professional relationship continued to grow. Mr. Guzmán trusted me,” she noted of the man who actor and writer Sean Penn described as a person of “indisputable charisma.”

At first, Colón Miró saw Guzmán three to four times a week. Later, she began visiting the MCC almost every day to translate documents and walk him through the legal process. “He kind of became dependent on my style. He liked our working chemistry. He felt very comfortable.”

Although chance was key to Colón Miró’s present, it was choice that placed her on her

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second year of law school at the same time that Mexican authorities recaptured El Chapo after his movie-like escape from prison in a motorcycle; their paths meant to collide. After passing her bar exam, just two years later, she calmly sat across the glass partition of the visiting room at the Metropolitan Correctional Center (MCC) in downtown Manhattan to tell El Chapo she was leaving his legal team. After working five months as a part-time bilingual paralegal for one of the three firms representing him, the newly sworn-in lawyer had accepted a job with the Legal Aid Society.

“I attended the swear-in ceremony and then visited Mr. Guzmán. He told me he wanted to hire me as a trial attorney and would Mariel Colón Miró and Emma Coronel, El Chapo’s wife, exit a New York courthouse. >AP have one of the firms in the case hire me and known Josefita Monserrate de Sellés School. After will turn 27 next month. that´s what happened,” she narrated nonchalantly. graduating from Academia Maria Reina, and Nine months out of law school, she became an studying music business at Loyola University in New Horizons associate at the law offices of Michael Lambert New Orleans, she hoped to establish a corporate In addition to working on Guzmán’s appeal, and the only woman sitting on the defense table practice dedicated to the entertainment industry.

Colón Miró helps Coronel with her fashion line, “El during the kingpin’s While at law school, she Chapo Guzmán: JGL.” three-month trial. discovered a passion “She generated money on her own, here in “It was funny. Lead for criminal law upon New York, last year. It has nothing to do with her lawyers always like volunteering at the husband, not even México,” she said, rejecting to sit next to their criminal justice clinic, possible ties to dirty money. “She does business clients. It’s normal, but “I saw the court as my within the fashion industry in New York. She is an the client [El Chapo] stage and the judge as entrepreneur...

She is trying to live a quiet life.” would always say my audience.”

From her vantage point, questions over the ‘this is Mariel´s chair’ Colón Miró, the morality of defending ‘despicable’ clients imply a because he wanted daughter of Héctor misunderstanding of the legal profession. When me close,” Colón Miró “Ito” Colón, the artistic I asked her why she´s defending Guzmán and told THE WEEKLY director of famed Epstein, Colón Miró argued that each person is JOURNAL. Puerto Rican singer presumed innocent until found guilty.

- Mariel Colón Miró, Esq.

Lucecita Benítez, and “We have a right to make mistakes and to At first, Colón Miró Annette Miró, a medical remake our lives. One or two mistakes cannot saw Guzmán three technologist, has a define who you are and don’t determine if you can to four times a week. Later, she began visiting the younger brother, Héctor. He studies economics change as a human being,” she said. “From a moral MCC almost every day to translate documents and is the first Puerto Rican martial arts competitor standpoint, I’m here for a reason. My purpose and walk him through the legal process. “He kind selected by the United States Mixed Martial Arts is to help people, to be there when everybody of became dependent on my style. He liked our Team, she highlighted with pride. has turned their backs on them. I am not God to working chemistry. He felt very comfortable.”

A fan of bolero songs (slow-tempo Latin judge,” said Colón Miró before saying good-bye. music), Colón Miró has music from Justin Bieber, [Silence] Woman in the Picture Lady Gaga, Lucecita, Ednita, Rocío Durcal, Karol “Woop woop!” A direct message from Colón Miró During the trial, only one woman would be G and Bad Bunny in her iPod. However, she appeared on my Instagram account. photographed next to El Chapo and his wife, Emma especially admires Mexican singer Ana Gabriel and “Pleaseeeee, can you use both last names. I am Coronel. Who was she?

Puerto Rican singers Olga Tañón and Pedro Capó. proud of my mother’s surname and in the states Growing up between Carolina and San Juan, “When I want to get things done, I listen to Olga’s they always drop it.” before moving across the Atlantic, Colón Miró “Muchacho Malo” (Bad Boy),” said the woman who “Of course,” I replied. learned how to write, read, and dream at well-

From a moral standpoint, I’m here for a reason. My purpose is to help people, to be there when everybody has turned their backs on them. I am not God to judge.

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Crazy

A New Spot Pulpo in Condado Delicious seafood and Puerto Rican cuisine meet in an oceanfront restaurant Melissa M. Cruz

T >Photos by Melissa Cruz

mcruz@elvocero.com

@mmcruzrios

he gastronomic scene in Condado was shaken up once again with the opening of Crazy Pulpo a little over a month ago.

THE WEEKLY JOURNAL had a chance to visit the restaurant and tour the facilities with the owners, Luis Dana and Melanie González, who gave insight into their new endeavor.

“We have specialties like the ‘pulpo a lo crazy’ (crazy pulpo) and the ‘mariscada fría’ (cold crustaceans),” said Dana. The “pulpo a lo crazy” is a braised octopus tentacle served with “criolla” sauce and accompanied with “malanga” chips; whilst the “mariscada fría” is a dish with Alaskan crab, jumbo shrimp, delicious lobster, crab salad and ceviche in a passionfruit sauce. The “mariscada” comes with cocktail sauce, tartar sauce and melted butter for the diner to enjoy with his crustaceans.

The restaurateur went on to mention other popular dishes offered on the menu like the bacon wrapped shrimp, “salmorejo de jueves” (a crab-based soup) served with “arepas”, “cartucho” salad (queen conch salad) and the red snapper which may be stuffed with either “mofongo” or “arroz mampostero”. He also said that the most important thing is to offer fresh foods and that although the restaurant is mainly seafood, they do offer premium meats like skirt steak.

/ Wednesday, September 11, 2019

The Locale

Located at 1025 Ashford Ave., Crazy Pulpo has been designed to be cozy yet elegant, a conscious choice meant to prefigure the gastronomic experience.

In keeping with that idea, they designed a comfortable reception area and piano bar which features live music on Thursdays, Fridays and Saturdays starting at 8 p.m. Diners are invited to stay and hang out either before or after dinner.

The marine style chosen for the restaurant is evident throughout the place; from the lighting to the colors and the wallpaper. The owners want guests to feel as if they are inside a submarine, even when at the bar, which is meant to look somewhat like it was attacked by kraken, the enormous mythological creature which is a squid to some and an octopus to others.

Crazy Pulpo also has a dining room with elegant “criolla” style tile in shades of white, gray and navy which can host anywhere from 12 to 20 people.

After walking through this dining room there is another dining space with a bar that can seat up to 40 people. This room also aludes to a submarine, featuring wallpaper that looks like an old map from the times of the kraken and a warmer color palette which brings out the steel accents on the bar.

At the end of the restaurant rests the main dining room which offers a privileged view of the Atlantic Ocean.

According to Dana, the name “Crazy Pulpo” came to him while talking with a friend on a trip to the Sonoma Valley in California. It was at that moment that he decided the name of his newest venture, which took almost eight months to get off the ground.

The restaurant can seat 90 people and opens Sunday to Thursday from 12 p.m. to 10 p.m. and Fridays and Saturdays from 12 p.m. to 11 p.m.

For more information, call 787-646-0003.

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PR Meal Company Bets on the West For the time being, PR Meal Company’s meals can be picked up at CrossFit Rincón, a local gym, but Huertas hopes to expand his services to other areas on the west side of the island.

E

Bárbara Sepúlveda

bsepulveda@elvocero.com

“I wanted to offer healthy foods to people who, because of their fast-paced lifestyle, do not have the time to plan or even make their meals,” said Huertas to THE WEEKLY JOURNAL. Because many people think that meal delivery services mean subscribing to boring diets and foods, PR Meal decided to offer meals made with organic and local products and to provide customers with the opportunity to choose their weekly menu.

The menu changes on a weekly basis and offers a variety of breakfast, lunch and/or dinners, accompanied by fruit-infused water.

Betting on Puerto Rico

Huertas, who graduated with a degree in chemical engineering from the University of Puerto lvin Huertas wanted to come back Rico at Mayagüez, home and moved to the U.S. contribute for a few years but to the local always hoped to economy, come back home. particularly “When the the one opportunity on the west side, and came up I quickly decided to take a chance grabbed it!,” he on the health food industry confessed. by establishing PR Meal - Elvin “One has to look Company, a meal delivery Huertas, PR Meal Company founder for opportunities service. and as soon as Huertas chose the name they appear, be PR Meal Company because the letters PR mean both Puerto Rico and personal willing to accept the risk and take them,” he said.

For now, PR Meal Company’s meals can be record; and the service is meant to cater to those picked up at CrossFit Rincón, a local gym, but people who are gym club members with specific Huertas hopes to expand his services to other goals and objectives they want to meet by areas on the west side of the island. incorporating healthy eating into their routines.

One has to look for opportunities and as soon as they appear, be willing to accept the risk and take them

>Photos Courtesy PR Meal

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puertorico@mdausa.org

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< The Weekly Journal > Wednesday, September 11, 2019

VIERNES/27/SEPT/2019

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/ Wednesday, September 11, 2019

San Juan Artisan Distillers Becomes the first to produce

Agricole Rum in Puerto Rico Álvarez grows a total 70 acres of sugarcane, which he mills into raw sugarcane juice for his premium agricole rum brand, Ron Pepón.

P

Claudia Guerrero Negrón

newsroom@wjournalpr.com

@cguerreronegron

roudly wearing a green baseball cap that reads “Drink Local” in bold white letters, Pepe Álvarez toured his artisan rum distillery in reflection of the uphill battle he has faced opening Puerto Rico’s first modern “agricole” rum distillery. Ron Pepón is a rum fully produced with the acres of sugarcane that Álvarez has cultivated in his very own 14-acre farm in Vega Alta that he acquired in 1991.

Starting out as a landscaper, Álvarez worked from summer job to summer job in his teenage

years, then went to college at night and during the that no one in Puerto Rico distilled rum using day worked on opening his own grass business. He the pure, unprocessed juice that’s extracted grew and sold grass to the plentiful construction from the sugarcane, only molasses, which is that businesses that were experiencing boom times same juice only boiled and concentrated to be in the 1990s. When Section 936 ended, a law that crystallized, creating a thick, gooey syrup that is gave U.S. corporations tax incentives to establish later fermented and distilled into rum. operations in Puerto Álvarez soon Rico, the local economy realized that Puerto took a huge hit, along Rico, who was once with Álvarez’s grass a world leader in business. sugarcane production As a 55-year-old in the 20th century, connoisseur of grasshas the perfect breeding, if you will, soil for sugarcane Álvarez looked for ways development as to reinvent himself he rescued it from as it was too early near extinction and - José Álvarez, San Juan to retire, finding in cultivated the scarce sugarcane the solution Puerto Rican sugarcane Artisan Distillers president to his income-lacking cultivars that now situation. cover over 70 acres of “Sugarcane is just his land with another essentially another type of grass, something I knew farm in Vega Baja. how to work well with,” said the distiller.

When Álvarez had his acres of fully grown, Álvarez saw a business opportunity in the fact luscious sugarcane plants ready to turn into

This is a family-owned business that continues to be in the works.

We are artisanal in the sense that we always value quality over quantity.

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what is known as agricole rum, Hurricane Maria destroyed and inundated all of it on Sept. 2017.

Forced to start from scratch, he had to think of a way to generate income while he grew back all the sugarcane the hurricane destroyed.

One day, walking through an abandoned field where the non-operating railway of the famous sugar factory train remained, Álvarez stumbled on three nails that lay on the ground, one right next to the other. That’s when it hit, “Tres Clavos,” meaning “three nails,” would be the name of his next venture, an artisanal rum that would be aged using fresh, local fruits.

Offering varied and interesting flavors

Inspired by tradition, Álvarez uses mango and Spanish lime (”quenepa”) from Santa Isabel, passion fruit from San Sebastián, ginger from Barranquitas and pineapple from Manatí and Lajas to age his artisanal, handcrafted ron caña infusing five flavors: Rumba Mango, Passion Parcha, Ginger Spice, Sweet Piña and Tutti Fruits.

With a million-dollar investment, Álvarez acquired three pot stills from the Cognac and Champagne regions of France and one German pot still to install in his small-batch producing factory.

Two of the pots have a capacity of producing 2,500 liters of rum. Unlike massive rum distilleries that use a continuous distillation process, San Juan Artisan Distillers gets rid of what is known as the “heads” and “tails” of what is produced at the end of the distillation process, meaning what first comes out and what comes out last is discarded to only use pure and fresh ron caña.

“We do this to maintain the quality of our product, using only what is known as the ‘cortes corazón’ or ‘heart cuts’ of the total liquid that is produced,” he said.

To help him is engineer José Roberto Álvarez Lefranc, his son who is the head distiller and vice president of operations, and engineer Humberto

With a million-dollar investment, Álvarez acquired three pot stills from the Cognac and Champagne regions of France, and one German pot still to install in his small-batch producing factory. >Picture provided by Nicole Alvarez

Cordero, assistant distiller and assistant operations manager. As his son went on vacation, Cordero took over the factory’s operations, making sure the rum produced reached an alcohol level of 30 percent, a high amount when compared to the flavor-infused rum standard of 15 percent or 22 percent.

As Tres Clavos took off, Álvarez remained patient as the sugarcane grew back, aging his first batches of Ron Pepón a little over a year after the hurricane, in December 2018. The agricole rum, which is currently being aged, will be the first rum in Puerto Rico to be produced with locally grown sugarcane, coming into the market in about two years, but possibly this fall with a limited edition.

In Puerto Rico, the law states that for a distilled rum to be labeled as Puerto Rican, it must be aged at least one year in oak barrels, of which Álvarez just recently received a shipment to complete

Álvarez will soon be presenting to the market coconut-infused ron caña and “bili quenepa”, a Vieques-originated drink that includes blends of Spanish lime and cinnamon. >Photos Courtesy Nicole Álvarez.

an arsenal of 210 ex-Jack Daniels once-dumped barrels.

Importance of government assistance

This project, which Álvarez confirmed has three important economic development elements, namely the touristic, industrial and agricultural sectors, involves three government agencies: the Agriculture Department, Puerto Rico Tourism Company and the Puerto Rico Industrial Development Company.

Agriculture made a $130,000 investment in San Juan Artisan Distillers that were used for the farm’s irrigation system, equipment for the tillage, or cultivation of the land, the purchase of sugarcane seeds and the purchase of the mill, used to extract the raw sugarcane juice later used for Ron Pepón. Álvarez currently has around five or six employees working the field, while also having five or six employees working in packaging and preparing the sleek-looking bottles of the premium fruit-infused ron caña, Tres Clavos.

“This is a family-owned business that continues to be in the works, we are artisanal in the sense that we always value quality over quantity. We are not rushing to produce big amounts of rum; we are testing and exploring as we go,” said the adventurous entrepreneur who was also once the owner of a surf shop called Loka Ola at Plaza Las Ámericas mall in San Juan.

The owner and founder hopes to employ more workers, with the inauguration of what will soon be the San Juan Distillers Visitors Center. The goal is to create an agrotourism site where visitors will get to tour the facilities and see from start to finish the fascinating process of turning fresh-cut sugarcane into herbal, aroma-infused, handcrafted caña agrícola rum for the sweet pleasure of tasting, but also purchasing for guests. Álvarez will soon be presenting to the market coconut-infused ron caña and “bili quenepa,” a Vieques-originated drink that includes blends of Spanish lime and cinnamon.

San Juan Artisan Distillers is located on RD-690 Sabana Hoyos, Vega Alta and can be reached at 787-505-2430.

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Caribbean Travels:

A Long-Weekend Getaway to Guadeloupe The best of the French Caribbean

G Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

UADELOUPE—There are many joys to living in Puerto Rico.

One of them is the convenience of island hopping for a longweekend getaway to so many different Caribbean destinations, with San Juan serving as the perfect base.

Recently, my husband and I decided to return to one of our favorite islands in the French Caribbean, Guadeloupe.

The French Caribbean refers to several islands, including Guadeloupe, Martinique, St. Barts and

St. Martin.

You know you are in France when really good wine is cheap, and even the table wine is good….

You are in France when in Guadeloupe.

Among our first stops upon touching down is the local baguette shop and Carrefour, the French grocery chain, to stock up on essentials.

Guadeloupe is not known for its French haute cuisine, but the basics are a treat: the baguettes, chocolate croissants (“pain au chocolat”) and other pastries are the real deal.

Guadeloupe is often called the Butterfly Island since the two main islands form the shape of butterfly wings. On the west side, Basse-Terre is set on a volcano range, topped by La Soufrière at the heart of a dense tropical forest. At a height of 4,813 feet, La Soufrière is the highest mountain in the Lesser Antilles. The rainforest-covered mountain range form part of a national park, which includes many hiking trails. To the east, just across the Salée River, Grande-Terre is set on a vast limestone

plateau bordered by lovely beaches and lagoons that share the coastline with popular surfing spots and unforgettable landscapes.

On our first trip to Guadeloupe, we concentrated on Grande-Terre, where we visited the Memorial ACTe, the best museum and exhibition that we have seen on the history of the slave trade in the Americas.

This time, we opted to focus our trip on BasseTerre, which is mainly a nature reserve. Visiting the National Park of Guadeloupe was definitely a highlight. We opted to take a 25-minute hike to the second of three waterfalls on Carbet Falls (Les Chutes du Carbet). This was fairly easy for non-athletes likes your correspondent, as the trail was paved and not too steep. For the more adventurous, there is the option of hiking a more arduous two-hour hike to the top of the highest waterfall, with a drop of 410 feet. Regardless of which trail you choose, the views are spectacular, as is the “prize” and feeling of accomplishment

You know you are in France when really good wine is cheap, and even the table wine is good….

You are in France when in Guadeloupe.

The view from Fort Napoleon, Les Saintes, Guadeloupe. >Photos by Rosario Fajardo

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when reaching the waterfall.

Another fun spot is the Cascade aux Ecrevisses, which is literally half a block from the paved road. Bring your bathing suit for this one, as the natural swimming pool formed by the waterfall makes it a popular site for locals and tourists alike.

The natural park is a joy for bird lovers, as Guadeloupe is home to 284 species of bird, including the Antillean Euphonia, with its beautiful green and turquoise feathers and the sprightly Lesser Yellowlegs. The only bird species endemic to the island is the Guadeloupe Woodpecker, often called the Toc-Toc for its tapping noise.

We also drove to the nearby town of Deshaies, which has now become a popular tourist spot because the French-British murder-mystery TV show, “Death in Paradise” is filmed there. My husband and I were fans until our favorite inspector was killed, so it was a delight to see so many of the show’s locations: the fictional Honoré Police Station, the fishing harbor and Catherine’s Bar. When driving near Plage de Cluny, on the northern area of Basse-Terre, drive slowly as we found to our delight that turtles do cross the road in this area!

The smaller, but equally beautiful islands of Marie Galante, Les Saintes

and La Désirade are just a short ferry ride from the main islands. We chose to take the ferry to Les Saintes, which takes about 35 minutes from Trois Rivieres on the Basse Terre side. A round-trip ticket is 23 euros per adult.

The ferries leave in the morning, at either 8:15 a.m. or 9 a.m., with several return times, the latest at 5 p.m.

Reserve or buy your ticket in advance.

Once in Les Saintes, rent an electric golf cart (60 euros for the day) and go directly to the 19th century Fort Napoleon that overlooks the bay. Once there, you can explore the grounds, visit the museum on the fort’s history and see the fascinating bones of a humpback whale.

The small island has several beaches: Pain de Sucre, which requires some tough walking as the trail is steep and rocky; and Plage Pompierre, my favorite because of its calm waters and easy access. This beach is popular with families and offers a nice picnic area and a shower to rinse off. Another option is Plage de l’Anse Crawen, which we also liked, even though it is a “clothing optional” beach. When we visited, everyone was dressed (thankfully).

For more information, log on to Guadeloupe’s official tourism website at www.guadeloupe-islands.com.

Please drive slowly around Plage de Cluny in Guadeloupe, as turtles may be crossing. >Rosario Fajardo

The second waterfall at Carbet Falls, Guadeloupe National Park.

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Viernes de Cultura, Ritmo y SaboR Festival Larga Vida A health and holistic farmer’s market. There will be local farmers, artisans, food kiosks, health drinks, massages, acupuncture, horseback riding, music and games for your enjoyment. Bring your yoga mat and enjoy an array of different lessons. Be sure to also check out the talks on health, medicine and wellbeing. Tickets are $10, children under 8 enter for free. For more info: www.ticketpop.com.

When: Sunday, Sept. 15 Where: El Dorado Agroturistic Park, state road 165, Dorado

El Grito de Lares 10K 10k race meeting at the Plaza de la Revolución in Lares. Sign up for free on the day of the event between 10 a.m. and 3 p.m. The first 300 people who sign up will receive free shirts and there will be medals for the first 300 people to arrive at the finish line. More info: (787) 897-0033.

When: Sunday, Sept. 15, 4:30 p.m.

Where: Plaza de la Revolución, A street, Lares

The city of Guaynabo and its mayor, Ángel Pérez, invite you to the second edition of their Fridays of Culture, Rhythm and Flavor.

Enjoy a night of live music, artisans, delicious food and even an antique car exhibition! The event is free of charge. For more info: (787) 929-0847.

When: Friday, Sept. 13, 7 p.m.

Where: Concha Acústica at city hall, Guaynabo

Open House Antiguo Acueducto de Río Piedras Join Puerto Rico’s largest land conservation trust, Para La Naturaleza, for a day of nature learning and fun! Participate in tree climbing, enjoy exhibitions on bats and wood, take part in painting workshops and enjoy a tour of the old aqueduct, a structure designated as a national treasure by the National Trust for Historic preservation. There will be a farmer’s market and food for sale.

More info at www.pln.org/registro and (787) 722-5834.

When: Saturday, Sept. 14, 9 a.m. – 3 p.m.

Where: UPR Botanic Garden, Carr. 1, Km. 519, Barrio Beatriz, San Juan

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Lucecita Benítez Concert: En las Manos del PueblO

Full Moon Party with Maxi Priest

Known as the nation’s voice, singer Lucecita Benítez will revive her iconic 1975 concert, “En las manos del pueblo”.

When: Friday, Sept. 13, 9 p.m.

Where: Luis A. Ferré Performing Arts Center, 22 Ponce de León Ave., San Juan

You won’t want to miss this all-night beach party with Maxi Priest! There will be a fashion show, art, cocktails and food. Special guests are Anbesa Crew and Friends. Tickets are on sale at Fangig and vivobeachclub.com.

Dresswear is club chic.

When: Saturday, Sept. 14, 7 p.m. – 1 p.m.

Where: Vivo Beach Club, 7000 Carr.187 RR2, Carolina

Carnaval Ensenadeño Taíno en GuánicA Learn about the Taíno culture in Guánica at this culturally enriching, family-friendly festival. There will be live music, a parade, artisans, food and music.

When: Friday, Sept. 13, 7 p.m. – 9 p.m. to Sunday, Sept. 15, 1 p.m. – 10 p.m.

Where: Poblado Ensenada, Guánica

Encounter Jazz Series José Negroni, Dr. Ed Calle, Sammy Morales and Nomar Negroni get together for a night of Jazz.

When: Thursday, Sept. 12, 8:00 p.m.

Where: Centro de Bellas Artes Luis A. Ferré,

Fiesta de la Plena y la QuenepA Come and enjoy live music, traditional food, cocktails and artisans at the first edition of the Fiesta de la Plena y la Quenepa.

When: Friday, Sept. 13, 6 p.m. – 11p.m. to Sunday, Sept. 15, 12 p.m. – 11 p.m.

Where: Parque Urbano Dora Colón Clavell, Ponce