The Weekly Journal - December 11, 2019

Puerto Rico and the Caribbean

www.theweeklyjournal.com

>Courtesy San Patricio

Wednesday, December 11-17, 2019 - // no. 033

Puerto Rico Air Traffic Surging P17 Spanish Economic Office Identifies Growing Sectors in Puerto Rico P10 Market Sounding Released for PREPA’s P3 P16

The Rebirth of the Mall:

From Just Buying to an Engaging Experience Shopping centers are reinventing themselves as integrated entertainment and lifestyle spaces at a time when big chains are closing and more consumers are shopping online

I

Cynthia López Cabán

Daddy Yankee’s Concert Series Continues in San Juan

P20

clopez@wjournalpr.com

@cynthia_lope

t was a rainy morning last Monday, as Elia González strolled around Plaza Las Américas in San Juan with five friends after finishing her exercise routine: an aerobics class in front of Macy’s, and an indoor walking routine up and down the hallways of the largest mall in the Caribbean and the second in Latin America. Wearing a Santa hat and a big smile, she led the group to the Christmas tree for a picture.

“I’ve been coming here for 11 eleven years because I don’t have to worry about cars hitting me, slippery or uneven sidewalks. Plus, I socialize and then I can go shopping,” indicated the retiree with a wink before striking a pose for the picture.

Not too far away, a young woman stood in front of the “El Jefe” Daddy Yankee Museum glancing at the Grammys the Puerto Rican reggaeton singer won for “Despacito”, the most-watched video in YouTube’s history. On the third floor, artisans Evelyn Vázquez Fuentes and Gerardo Delgado carved wood at their spot in the Ricardo Alegría Cultural Walk.

While it isn’t a new trend, in recent times, malls on the island have been zealously ditching the old formula centered on apparel stores peppered with a few entertainment and food offerings, for a well-crafted mixed-use destination that includes a robust menu of entertainment, gastronomic, educational and cultural experiences that seeks to connect with shoppers and their surrounding communities.

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/ Wednesday, December 11, 2019

a week in review Banco Popular Opens “Digital Hub” at The Mall of San Juan Motivated by the new digital banking trends that many Puerto Ricans are now using, Banco Popular has opened a new space at The Mall of San Juan.

Dubbed the “Digital Hub,” the bank’s new location is aimed at the technologically savvy consumers who regularly transfer money between various accounts, make payments and check their balances on smartphones.

Designed in a modern style, the Digital Hub takes into account the new trend of bank offices worldwide, aimed at the use of internet, self-service channels and more personalized attention through specialized consultants. >Courtesy BPPR

Call Center Expansion at Isabela

Airbnb Introduces New Rules to Rein in Parties and Nuisances Airbnb Inc. is taking steps to crack down on parties and nuisance guests in the wake of a deadly Halloween shooting at an Airbnb rental in the San Francisco Bay Area. The company said that it was banning “open invite” parties, like those advertised online, at all its accommodations. Airbnb also stated that boutique hotels and professional event venues would be exempt from the new rule. The San Francisco-based company is also banning large parties at apartment buildings and condos. >AP

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

The secretary of the Department of Economic Development and Commerce, Manuel A. Laboy Rivera, along with the executive president of Team and Tech, James Hill, announced the expansion of a call center located in Isabela, with a substantial investment.

“The company is committed to hiring more than 460 professionals, through continuous investment, who will join the current work team of about 240 employees, among these, veterans. We are proud to see this company, the leading provider of medical consulting services for veterans that claim benefits from the U.S. Veterans Administration, establish itself on the island. They undertook operations in 2017, one of the most difficult years in the history of Puerto Rico, and two years later have announced its expansion. They show that there are opportunities for growth in various sectors throughout the island, and that those include recruiting

the veterans who have bravely represented us,” said Laboy Rivera.

In addition to personnel for the call center, the company anticipates hiring information systems personnel such as business analysts, process automation specialists, developers and project managers, registered nurses, doctors, psychologists and administrative specialists. >Archive

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

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

Multi-Platform Digital Director Stephanie Gómez Álvarez sgomez@elvocero.com

Production Director Eligio Dekony edekony@elvocero.com

Editorial Director Juan Miguel Muñiz Guzmán jmuniz@elvocero.com

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

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

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from TO PAGE 1 Last year, for instance, Outlet 66 Mall in Canóvanas launched the first indoor electric gokart track in Puerto Rico. It recently opened the first and only drag racing track on the island, while, last week, San Patricio Plaza in Guaynabo unveiled plans to turn the space formerly occupied by Kmart into an open green area, combining nature, retail, dining and entertainment with big flat screens. Also The Mall of San Juan opened a circus.

What is driving these changes? Are retail vacancies or the shopper’s palate forcing the evolution of the sector?

Behind the renewal are converging factors that include changing demographics, economic uncertainty, retail bankruptcies and technological advances, according to experts interviewed by THE WEEKLY JOURNAL. “These changes have been going on for some time,” economist Heidie Calero stated.

The metamorphosis began at the end of the past century and the early aughts. A symptom of that vision was the relocation of the supermarkets to the outskirts of the mall because they “interfered” with the retail shopping experience.

Data from a 2012 census, the most recent information available, counted 293 shopping centers around the island. Four years earlier, a survey by the Puerto Rico Trade and Export Company listed 317. San Juan, Bayamón, Carolina, Caguas, Ponce and Mayagüez are the towns with the largest concentration of commercial space, while 14 malls exceed 500,000 square feet.

“The greatest risk for malls and for Puerto Rico are the demographic changes. We have less population due to migration and a low fertility rate.

The EcoExploratorio, a science museum on the second floor of Plaza Las Américas. >Gabriel López Albarrán Deaths on the island exceed births,” Calero pointed out. $196 million, with 41 percent of the users buying person shopping. In fact, the two channels benefit The population of Puerto Rico stood at 3.1 online. each other in many ways. Our recent Halo Effect million in 2018, its lowest point in modern Despite the increase, physical sales still hold research showed that online and physical work history, due -in part- to the massive exodus in the crown, with its ups and downs.

Chains and symbiotically, both driving significant traffic and the aftermath of Hurricane Maria that caused local businesses reported $2,810 billion in sales in sales to each other,” she indicated to THE WEEKLY damages of over $100 billion. The population loss August.

JOURNAL. is expected to continue “November was The research cited found that following an shrinking to less than 3 slow.

So far, Christmas online transaction, the average loyal brand million by 2025. sales and Black Friday consumer makes 2.1 transactions in-store with the At the same time, haven’t made up for same retailer within 15 days. fertility rates fell the loss of income of American malls are also dealing with empty gradually from 3.25 prior months,” Jorge stores.

Shopping mall vacancies reached 9.4 children per woman in Argüelles, president percent, an eight-year high, equating an average 1969 to 1.22 children in of the United Retailers occupancy rate of 90.6 percent, according to a Reis 2018. Studies suggest a Center told EL survey of 77 metropolitan areas. link between low fertility VOCERO last week.

Adding to this panorama, Cegielski indicated rates and economic Physical sales were that in spite of the vacancies, and drop in foot stress. Aside from the also slow in the United traffic, more malls have opened than closed bankruptcy-like process States.

Black Friday in the past decade.

“The retail industry is very to manage its $70 brick-and-mortar competitive, so there will always be properties that billion-plus debt load, -Heidie Calero, economist retail sales sunk by 6.2 face severe challenges.

It is the exception, not the the island has been percent, while online norm, though,” Cegielski stated. immersed in a decade purchasing reached long recession. $7.4 billion, the largest “The segment of 65 The Reinvention of the Mall online Black Friday total in history, according to years and older is growing. This group, in general In 2004, some analysts anticipated the death Adobe Analytics. terms, lives on a pension, such as government of the mall, but the buzz returned in recent years Stephanie Cegielski, a spokesperson for the retirees, that are now facing the threat of a due to the long list of well-known retailers closing International Council of Shopping Centers (ICSC) a pension cut as part of the Financial Oversight or going bankrupt. Yet, shopping centers seem to global network of retail and real estate companies Board’s plan to renegotiate the debt. Some of stand strong, with some exceptions like Galería which includes 78 local members, recognized these retirees live below the level of poverty,” said Paseos in San Juan that shut down and recently the Amazon effect and the preference for online the president of H. Calero Consulting Group. sold the entire structure. shopping but didn’t view it as a worrisome trend.

Then comes the second risk: online sales. In “It’s possible that some malls won’t survive, “The convergence of channels has changed 2018, the island had 2.2 million internet users, maybe medium and small ones, if they don’t what shopping in-person looks and feels like, according to the Digital and Mobile Behavioral adjust their offer. I don’t see malls disappearing, but there will always be a need and want for inStudy. Online shopping grew from $158 million to but reinventing themselves to attract shoppers,”

It’s possible that some malls won’t survive, maybe medium and small ones, if they don’t adjust their offer. I don’t see malls disappearing, but reinventing themselves to attract shoppers.

/ Wednesday, December 11, 2019 Calero said.

Helping the survival of the malls is the fact that Puerto Rico is an island with limited shopping options and a consumerist society.

For the economist, Plaza Las Américas offers an example of successful reinvention. “It has a business plan that is more than 30 years old and what is important is not the speed, is that it follows the plan.”

The mall, with over 300 stores, just turned 51 in September and since its opening, has adjusted its offerings to incorporate a tower for medical services and plans the development of a hotel.

Not all initiatives are big scale. Nor is Plaza afraid of taking risks. Look at the hugely popular Walkers Club that uses the space before the mall opens for regular business.

The administrators have also curated an interesting mix of tenants. Besides the urban music museum, other unexpected residents are El Nido, a t-shirt store with a hipster nationalist vibe; the EcoExploratorio, a science museum; and the El Churry food truck parked on the second floor next to a yogurt shop; and the farmer’s market on the third floor next to the hallway where certified artisans work and sell their pieces without paying rent.

Vázquez Fuentes, who joined Plaza Las Américas Artisan Program two decades ago, narrated that every Sunday a senior couple drives 17 miles from Corozal, in the center of the island, to hang out at the mall.

“They come. Stop by. Greet the guard who is like family to them and eat at the farmer’s market. This is their second home,” the artist stated.

But it’s not just old folks. Vázquez Fuentes teaches young people the art of carving wood.

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accurately embodies its vision.

When conceived 25 1. Plaza Las Américas San Juan - 1,900,000 years ago, the mall was 2. Plaza Wal-Mart Guayama Guayama - 1,635,980 meant as a convenience 3. Plaza Carolina Carolina - 1,158,000 shopping center that 4. Mayagüez Mall Mayagüez - 1,125,000 would cater to the 5. Plaza del Caribe Ponce - 850,000 needs of the region, not 6. Plaza del Sol Bayamón 709,758 just Guayama. Today 7. Plaza del Norte Hatillo - 698,513 that proposition still 8. The Mall of San Juan San Juan - 650,000 holds true, stated César 9. Plaza Escorial Carolina - 636,352 Vázquez Morales, one of 10. San Patricio Plaza Guaynabo - 630,000 Céntrico’s partners.

11. The Outlets Montehiedra San Juan - 610,911 “Our business 12. Los Colobos Carolina - 570,610 proposal always made 13. Las Catalinas Mall Caguas - 569,000 sense. Since the first 14. Plaza Río Hondo Bayamón - 555,442 day, 85 percent of our

Total 12,299,566 tenants were and are local businesses so we avoided the upheavals “I screen them to make sure they to fit in with caused by the closings and bankruptcies of the the values of our community. We don’t want American chains and stores,” he asserted. disruption. Once they are accepted, I give them In the last two years, stores like Armani, BCBG lessons until they get tired and quit,” she said Max Azria, Bebe, Guess, Chicos, Lululemon and jokingly.

Gap have closed, among other retailers.

Not only that. Hurricane Maria also awakened a The Regional Experience new sense of pride in all things local which helps An hour away from San Juan, Céntrico in the business, highlighted the entrepreneur.

Guayama, on the southern part of the island, “Foot traffic may be dropping in the U.S. but that writes its own page in mall history. With the help is not the experience here,” he said. of a generator, it reopened a month after Maria Vázquez explained that internet access is not as devastated the island. Due to the damages caused widespread in the region as it is the San Juan area, by the storm, the mall that houses 70 stores and that Amazon limits the merchandise it ships to the occupies 403,000 square feet transformed its island, and that online shopping is predicated on exterior and reinvigorated its cultural offer and the assumption of access to plastic, and the mall community services. It even changed its name serves middle and lower class communities. from Plaza Guayama to Céntrico, which more More than just attending to the physical constraints, the mall fulfills other cultural and community needs.

“The experience in the metropolitan area is different. It is a market with access to money, employment opportunities and other experiences.

In Guayama, we don’t have an Old San Juan or a Condado to shop in,” Vázquez said. “We are a convenience center that aims to satisfy our customer’s needs. We have more traffic because we still have a supermarket on the premises which brings a stream of traffic.”

Following the same principles, seven years ago, two new tenants moved in with unforeseen results.

Since the Collections Office and Department of Motor Vehicles arrived, visits from Carolina residents surged 14 percent because they were driving an hour to renew their license at the mall in other to avoid the long lines in their hometown.

The decision to leave the Pueblo Supermarket in the mall also proved wise. It has kept a continuous flow of shoppers coming.

More projects are on the horizon. Two months ago, Céntrico opened a local coffee shop and a hub, where shoppers can charge cellphones and use free Wi-Fi. On calendar for next year, are the opening of a coworking space created in alliance with the Sacred Heart University and the Municipality of Guayama, to offer online courses and certifications and a theater that will occupy an open space where once stood a fountain.

“People didn’t want the fountain. They complained it was too noisy and created noise pollution. So we eliminated it,” said Vázquez of the People stood in front of the “El Jefe” Daddy Yankee Museum glancing at the Grammys the Puerto Rican reggaeshoppers he serves, who he explained don’t like ton singer won for “Despacito”, the most-watched video in YouTube’s history. >Gabriel López Albarrán twitter but are always connected to Facebook.

Malls with Over 500,000 Square Feet

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>Courtesy Mastercard

Puerto Rico No. 1 in Latin America and the Caribbean in Online Purchases by Smartphones

Mastercard: E-commerce in the region to grow by 21 percent in 2020 to $71.34 billion Rosario Fajardo

rfajardo@wjournalpr.com

M

@RosarioWJournal

IAMI—The use of e-commerce has been rapidly expanding across the world and for many consumers, this method is becoming the “standard” for shopping. There is no doubt that key to this worldwide growth is the explosion of the smartphone market, allowing

millions of people to purchase goods and services online, practically instantaneously, with the touch of a button.

According to market research firm eMarketer, e-commerce sales in Latin America and the Caribbean (LAC) are expected to grow 21.3 percent this coming year to $71.34 billion.

Demonstrating the distinctiveness of the Puerto Rico e-commerce market, a Mastercard study of nine countries in LAC has found that the island leads the way in the region in terms of online purchases by smartphones.

An estimated 61 percent of Puerto Rican residents use their smartphones for online purchases, compared to 36 percent in Argentina, the lowest of the nine countries surveyed. The average for the region was 43 percent.

The study looked at the e-commerce behavior of consumers in nine LAC countries—Mexico, Colombia, Peru, Brazil, Chile, Argentina, Costa Rica,

Puerto Rico and the Dominican Republic—widely considered to be the major markets in the region.

The study results, by country, were organized in the same format as listed above.

However, the island lags behind other markets in that internet access at home is apparently the lowest in the region. According to the study, only 27 percent of Puerto Rico residents use desktops or laptops for online purchases, which is consonant with data that most households on the island do not have internet access in their homes.

By contrast, 63 percent of Colombians make online purchases with desktops or laptops, the highest result among the countries surveyed. The average for the region was 48 percent.

Another insight from the study shows that Brazil is the country where consumers make online purchases most often, followed by Mexico and Colombia, with more than one purchase every 15 days. The fourth and fifth place are taken by

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“Addressing the factors that would motivate consumers to shop online more frequently could help further increase e-commerce adoption in the region. This can help the retail and payments industry take advantage of the billions of dollars in untapped demand in e-commerce that is present in LAC [Latin America and the Caribbean].”

- Jorge Arbesu, Mastercard VP of Cybersecurity for LAC

Argentina and Costa Rica, with a purchase every two weeks. In Puerto Rico, the Dominican Republic, Chile and Peru, they buy less frequently, about a purchase every month.

Analyzing the low end of the spectrum underscores the latent demand and thus, opportunities for e-commerce in the region. For instance, in every surveyed country, 30 percent to 40 percent of consumers made very few purchases online. These categories included “once every couple of months,” “once every six months,” and “less often than once a year.”

However, of consumers who shopped online, the trends are very clear. Without a doubt, the top

Sophia, a human-like robot developed by Hanson Robotics, delights the crowd at Mastercard’s Innovation Forum 2019 in Miami. >Courtesy Mastercard

Carlo Enrico, president of Mastercard Latin America and the Caribbean, speaks during the company’s Innovation Forum 2019 in Miami. >Courtesy Mastercard

products purchased online across the region is important to note that these numbers represent entertainment, which includes fewer than half of the participants of streaming services, followed each country surveyed, meaning that by electronics and information most online shoppers have faith in technology. The third most the e-commerce system,” popular products on the list are “clothing, shoes and The Age of Acceleration jewelry,” followed by food and According to a Mastercard In this new world, “acceleration” is study, the most popular “beauty and personal care.” the name of the game, according to products purchased online The results of the study Carlo Enrico, president of Mastercard in Puerto Rico are elecwere released during Latin America and the Caribbean. tronics and information Mastercard’s 2019 Innovation Inclusion for those who do not have technology; followed by Forum for Latin America and access to financial technology, as entertainment, which inthe Caribbean, which was just well as ensuring that the technology cludes streaming services; held in Miami. is secure and innovative are and clothing, shoes and “Addressing the factors that jewelry. important drivers for transformation, would motivate consumers to he said. shop online more frequently “In an age of technological could help further increase acceleration, with so many changes e-commerce adoption in happening so quickly, each company the region,” said Jorge Arbesu, Mastercard VP of wants and should have not only the best products Cybersecurity for LAC. “This can help the retail and and the best solutions, but also needs to have a payments industry take advantage of the billions positive impact on society,” he said to reporters. of dollars in untapped demand in e-commerce that According to the executive, there are about 200 is present in LAC.” million people in Latin America and the Caribbean Even though the majority of consumers said who are underbanked or unbanked. they trust the security of e-commerce, the study “Not only does this represent a business shows that there’s opportunity to better inform opportunity, but it must also be a social the public about the safety associated with online responsibility for Mastercard and the entire purchases. When discussing concerns related to industry,” he said. e-commerce, one of the most important concerns For example, Enrico pointed out that the of shoppers in Puerto Rico, Mexico, Colombia, company is improving financial access to people Peru, Costa Rica and the Dominican Republic was working in the coffee farming and flower growing the fear of card data being compromised during or industries in the region, “We are creating a after purchases. technological ecosystem so that employers can “Educating these consumers about new pay their temporary employees through mobile technologies like artificial intelligence and passive phone apps so that the money goes directly into biometric authentication may allow e-commerce prepaid cards,” he said. This system ensures that to spread into more households, turning those the workers are paid on a timely basis but also rare shoppers into frequent ones, once they know gives these workers the opportunity to build their they can trust the system,” Arbesu said. “Still, it’s credit.

In fact,

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Mastercard Sees “High Potential” in the Caribbean Puerto Rico is one of the company’s core markets in the region

M Rosario Fajardo

rfajardo@wjourmalpr.com

@RosarioWFajardo

IAMI—Mastercard, a multinational leader in the financial services industry, is aggressively expanding into the Caribbean, with the region’s high potential for growth in the electronic payments market serving as the main driver.

This strategy was emphasized in the company’s LAC (Latin America and the Caribbean) Innovation Forum 2019, which was just held in Miami.

“In Latin America and the Caribbean, we are investing a lot, not only in the usual suspects, Brazil and Mexico, but also in what I call the markets with very high potential. We have opened new offices in Jamaica, Puerto Rico and the Dominican Republic,” said Carlo Enrico, president of Mastercard Latin America and the Caribbean, in an aside with THE WEEKLY JOURNAL. Plans are underway to open three to five new offices in the region, he added, but did not give specifics. “We are definitely growing by more than 20 percent in the region. LAC [Latin America and the Caribbean] is the fastest growing region in the world.

Mastercard is accelerating the change by hiring more people and deploying technology,” he said.

According to Mastercard officials, the company’s San Juan office, which opened in August, currently has five staff members, with two more people to be hired in the coming year.

José Vargas, Mastercard country manager for Puerto Rico and the U.S. Virgin Islands, told THE WEEKLY JOURNAL that as the island continues to recover from Hurricane Maria, it is important for the company to be on the ground in Puerto Rico.

Investments are being made in Puerto Rico, by both businesses and government, while tourism is also up, he indicated.

“Puerto Rico is a key market for us. The island’s future is positive, as we continue to partner with local companies and the government,” he said. Vargas also mentioned that while the overall usage of electronic payment methods is relatively low in the rest of the

Marcelo Tangioni, president of Mastercard’s Caribbean Division >Courtesy Mastercard

Caribbean, it is the norm on the island. includes promoting financial inclusion to those who As the digital revolution continues to grow are unbanked and underbanked. “As payments are worldwide, the Caribbean’s untapped potential in made from cash to electronic, we also want to improve electronic payments has attracted the attention of the local economy and society by improving access Mastercard, a major player in this and opportunities,” he said. For industry. Currently, only about 20 example, Mastercard is helping percent of personal transactions underserved micro and small in the region is conducted with businesses, such as those in the electronic payment cards, such coffee farming industry, gain access as credit, prepaid and ATM cards. to digital payments and credit.

According to Mastercard The upside is the remaining 80 As part of Mastercard’s officials, the company’s percent of the market share that expansion into the Caribbean, the San Juan office, which Mastercard hopes to capture. company conducted a study of the opened in August, “Cash is still king in the region including payment patterns currently has five staff Caribbean, and this is our no. via electronic methods and members, with two 1 competitor,” said Marcelo cash. They also studied payment more people to be hired in the coming year.

Tangioni, president of flows in such areas as personnel Mastercard’s Caribbean Division. consumption, remittances, However, with the opening of new government expenditures and the offices in the region, including private sector, including tourism, one in Puerto Rico, the company is hoping to rapidly which is a major industry in the region. For example, increase its market share in the Caribbean. “We are Mastercard found that the use of prepaid cards is a hiring local staff. We are partnering with financial big driver, primarily due to remittances sent by many institutions and companies in the region,” he said. people living in the United States to their families in Tangioni added that the company’s commitment the Caribbean.

In Fact

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Mixed Marks for the

Manufacturing Sector threshold for the last seven months means that we should be looking at that sector to see what is happening and which are the factors that are driving the index,” Villamil told THE WEEKLY JOURNAL. From his experience, the economist suggested that a contributing factor could be the uncertainty created by the imminent elimination of the excise tax, an action precipitated by Donald Trump’s tax reform. @cynthia_lope clopez@wjournal.com CynthiaLópez Cabán The new tax regime lowered the barriers for American companies to repatriate overseas espite rising a few points, an profits and designated the island as a foreign indicator of the the island’s jurisdiction for contribution purposes. Both manufacturing activity changes inflicted a blow to the excise tax that continues on a lagging trend. 24 multinational corporations pay and that According to a report by generates an estimated $1.85 billion yearly to the Institute of Statistics, the commonwealth’s coffers. the Purchasing Managers The excise tax was introduced by Act 154 Index (PMI) surged of 2010. It imposes to 48.4 points in a 4 percent levy on October from 43.8 in certain purchases September. Yet, the made by American index remained below Foreign Controlled the threshold level Corporations of 50 for the seventh (CFC) whose gross consecutive month, a receipts exceed $75 signal of contraction million. Until now, in the sector. the multinational In recent months, companies paying the the PMI increased tax received a 100 to 46 in August from percent credit when 42.20 in July of 2019. filing federal taxes.

In general terms, it But that is about to -José Joaquín Villamil, chairman and CEO of has averaged 50.88 change because the Estudios Técnicos points from 2010 until U.S. Treasury already 2019, reaching an requested the phasing all-time high of 61.70 out of the tax since it in March of 2013 and goes against the grain a record low of 33.10 in September of 2017, the of the tax reform. month Hurricane Maria devasted the island.

“It’s a very useful instrument, but it has its Looking at the Subindexes limitations, including how representative it is The New Orders, Production and Own of the sector. Secondly, that it is not seasonally Inventories subindexes increased when adjusted and, third, that the sub-indicators or compared to the previous month. In October, subindexes are given equal weight and that is new orders PMI grew to 50 from 44.2 points questionable. Even with these limitations, it is in September, production surged from 44.6 a very useful instrument to have particularly in September to 52.6 in October and own when you consider trends,” said José Joaquín inventories rose from 34.6 points to 47.4 in Villamil, chairman and CEO of Estudios Técnicos, October.

Only the indexes of new orders and and an economic adviser for the Puerto Rico production reached the threshold mark.

Manufacturers Association, who participated in The Employment and Supplier Deliveries the survey. subindexes dropped from September The PMI is currently available only on a Nonto October. When it comes to labor, the Seasonally Adjusted basis which means that seasonal fluctuations can affect its performance. employment PMI edged down to 44.7 points in October, remaining below the threshold level for “The fact that the PMI has been under the

The Purchasing Managers Index (PMI) leaped almost 5 points, but the indicator has yet to shake its receding course

D

The fact that the PMI has been under the threshold for the last seven months means that we should be looking at that sector to see what is happening and which are the factors that are driving the index.

José Joaquín Villamil, chairman and CEO of Estudios Técnicos, at a presentation on a study regarding the impact of locally-owned business in the economy. >Carlos Rivera Giusti/ El Vocero

the seventh consecutive month. In September, it reached 46.2 points, a mark higher than the 42.1 it achieved in August, but below 50. The supplier deliveries fell three points.

Puerto Rico’s PMI has been at or above the threshold level for 66 of the 114 months since the survey was first undertaken, indicated the Institute of Statistics in its report.

The index is the result of a collaborative project between the Manufacturers Association and the Institute of Statistics. It measures short-run business conditions in Puerto Rico’s manufacturing sector and provides a broadbased metric for the productive side of the island’s economy. It is currently in a testing phase.

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The Economic and Commercial Office of Spain in Puerto Rico helps Spanish companies understand the Puerto Rican market and access commercial contacts. The office also extends its services to local companies interested in exporting to Spain. >Gabriel López Albarrán

Spain’s Economic and Commercial Office Outlines Business Opportunities in Puerto Rico Identifies sectors with the greatest opportunities for growth, stresses cultural bonds between nations

T Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

he Economic and Commercial Office of Spain in Puerto Rico (OEC by its Spanish acronym) affirmed that there are multiple business growth opportunities in Puerto Rico for Spain-based companies, highlighting these nations’ historical relations as a valuable asset.

Speaking to THE WEEKLY JOURNAL, Rosario Paradinas Zorrilla—Economic and Commercial adviser, or office manager, for the Spanish public entity—explained that the office identified

four sectors on the island that are currently underdeveloped, but could potentially offer “great opportunities.” These being: infrastructure, tourism, agriculture and waste management.

Regarding infrastructure, Paradinas Zorrilla noted that there is “some presence,” but she expects that this sector, particularly water and energy, will have a “greater presence” from private investors. This is punctuated by a market sounding released last week by the Public-Private Partnership Authority (P3A) for a concession of operations and maintenance of the Puerto Rico Electric Power Authority.

“From our office, we are trying to follow up on all tenders that may arise, as well as to publicize the framework of Law 29, on Public-Private Partnerships, encouraging our companies to make viable proposals that improve some of the services and favoring that they always go hand in hand with a local company,” the Spanish official said.

Moreover, Paradinas Zorrilla highlighted the Puerto Rico Integrated Resource Plan, which “wants to give a strong boost to renewable energies, where

OEC Market Analyst Ignacio Monsalve Gil-Fournier informed that the office organizes “commercial missions” so that Puerto Rican companies get to know about Spain’s business offering. >Gabriel López Albarrán

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/ Wednesday, December 11, 2019

our companies have great experience and are a benchmark for the integration of renewable energy into the electrical system.” She noted that the European Union required its members to generate 20 percent of its electric power through renewable sources. According to Paradinas Zorrilla, Spain’s final gross energy from renewable energy was 17.3 percent in 2018. Thus, Spanish companies with experience in renewable goals could share their expertise locally.

Paradinas Zorrilla also noted that Puerto Rico could benefit from Spain’s experience in boosting tourism. The Foundation for Puerto Rico estimates that travel and tourism contributes 2.5 percent to the island’s gross domestic product (GDP) directly, and 7.2 percent in total. In contrast, the tourism sector represents more than 10 percent of Spain’s GDP, with more than 82 million visitors reported last year. “We believe that there are opportunities for new Spanish businesses to share their experience and knowledge with local companies,” she said.

“In this context, it is worth highlighting that we are inviting some hotels in Puerto Rico to participate in the FITUR Know-How and Export fair, which will be held in Madrid in Jan 2020, with the aim of learning about the tourist technological services offered by Spanish companies. We would also like to have an active presence at the next World Tourism Summit held in Puerto Rico from April 21-23, a unique opportunity to boost this sector and give Puerto Rico a qualitative leap in its tourism offer,” the economic and commercial adviser said.

As for agriculture, the Spanish official said it is “shocking” that Puerto Rico imports most of its food and beverage products, with the sector comprising roughly one percent of the GDP. She asserted that several Spanish companies already established in the Dominican Republic could extend their services and equipment to be used in Puerto Rico.

Lastly, she affirmed that Puerto Rico needs to take advantage of the closure of most landfills and landfill systems to promote a circular economy where the waste can be attributed value.

“In Europe, environmental legislation has advanced a lot and has forced consumers and companies not only to recycle, but to develop new technologies that allow the recovery of both organic and inorganic matter, turning them into new products, including energy. We believe that due to the conditions of Puerto Rico, it is a sector of maximum importance, together with the water and energy sector,” Paradinas Zorrilla said.

conduct market studies so that Spanish companies and share several idiosyncrasies. are well-informed about a concrete sector,” The official affirmed that entrepreneurs from Monsalve Gil-Fournier said. both nations must seize the benefits of those However, he observed that the OEC also common interests to boost greater economic and commercial exchanges. According to Paradinas organizes “commercial missions” so that Puerto Rican companies get to know about Spain’s Zorrilla, Puerto Rico exports roughly $946 business offering. million to Spain, while importing nearly $182.8 million. Of these, 95 percent of the products Paradinas Zorrilla informed that the office recently supported a exported to Spain are “Mission of the Trade pharmaceuticals. and Export Co. to “There are Spain” in Sept. 2019, numerous advantages in continuing to boost where more than a greater business 10 local companies presence on both participated. The sides of the Atlantic,” official added that they she said. partook in organizing a The economic workshop in San Juan and commercial on how to do business adviser stated that in Spain before the -Rosario Paradinas Zorrilla, OEC | Puerto Rico should event, as well as Economic and Commercial adviser consider Spain as a providing attendees natural gateway to with contacts and the European market, meetings in Madrid. with more than “We are the direct 510 million residents. Meanwhile, she said that partners in Puerto Rico of our colleagues at Invest Spanish companies, particularly small- and midsize In Spain, a public business entity whose main businesses (PyMEs by its Spanish acronym), should objective is to promote foreign direct investment consider Puerto Rico as a bridge to both North in Spain. It offers information, advice and support American and Latin American markets. services to industrial and financial investors that “Acts 20, 22, and 73 compile a series of fiscal are interested in the Spanish market. It works as incentives and tax exemptions for foreign the meeting point of the Central and Autonomous companies regardless of the size, which applies Administration and of foreign investors with depending on the sector and industry in which the possible local partners,” she explained. company operates,” she said, praising the island’s Stresses Cultural Bonds overall business environment. in Commercial Relations Lastly, Paradinas Zorrilla noted that the Paradinas Zorrilla stressed the cultural and nations’ history with one another provides for a historical bonds between Puerto Rico and Spain as comfortable and potentially lucrative experience. attractive assets to endorse commercial relations “A Spaniard feels at home when they visit or live in between both nations, given that the island was a Puerto Rico, and I believe it goes both ways,” she colony of the Spanish crown from 1493 until 1898 asserted.

We believe that there are opportunities for new Spanish businesses to share their experience and knowledge with local companies.

Office Extends Assistance to Puerto Rican Businesses

Ignacio Monsalve Gil-Fournier, the market analyst for the OEC, said that the office’s services are primarily directed at Spain-based companies understanding the Puerto Rican market and accessing commercial contacts.

“We provide information about the market, access requirements and contacts with the agencies that affect them, and provide personalized services. We mainly prepare business meeting agendas on the island and facilitate business contact relationships… Then, we also

OEC Economic and Commercial Adviser Rosario Paradinas Zorrilla outlined the key sectors her agency has identified that have the potential to grow in Puerto Rico. >Gabriel López Albarrán

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/ Wednesday, December 11, 2019

Evertec Completes Acquisition of PlacetoPay’s Shares

The Puerto Rico-based company continues expanding in Latin American markets

E

Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

vertec Inc., a full-service transaction processing business based in Puerto Rico, announced last week that it acquired all capital stock shares of EGM Engineering Without Borders, also known as PlacetoPay, in its latest bid to continue expanding in Latin America.

Evertec President and CEO Mac Schuessler and Luis Rodríguez, general counsel and executive vice president of Corporate Development Strategy, explained to THE WEEKLY JOURNAL that PlacetoPay is a “made-in-Colombia” company that focuses on the ever-growing business of e-commerce. The service acts as a payment gateway product that allows users to accept payments online.

“It’s one of the most innovative companies in all of Latin America. Currently, it only serves customers in Colombia and Ecuador, but we feel that this technology is good enough that it will enhance our offering all throughout the region, including, eventually, Puerto Rico,” Rodríguez said.

Rodríguez further praised PlacetoPay’s software, which he deemed to be “as innovative as they come.” He noted that the program’s architecture is designed in a way that allows it to pose in-country and outside of the country.

Schuessler informed that PlacetoPay has more than 800 clients to date, primarily in Colombia “with a small presence in Ecuador,” but commended the company’s ability to offer customized solutions while becoming one of the top e-commerce gateways in the South American country.

“If you look at Colombia, it is one of the largest Spanish-speaking countries in Latin America. We think it is a pretty exciting and unique opportunity… even bring some of that technology into Puerto Rico,” Schuessler stated.

Because the acquisition of the transaction service’s shares was completed last Monday, Evertec is still in the process of developing an expansion strategy in the markets that PlacetoPay currently serves, as well as other countries and regions in Latin America, including Puerto Rico. The service, however, is likely to take several years before it reaches the island’s market, but Evertec hopes to

Evertec President & CEO Mac Schuessler affirmed that the Puerto Rico-based company’s revenue in foreign markets has grown from $37 million to $80 million in the past four to five years. >Courtesy

announce it in the “very near future.”

“There’s a lot of flexibility with what we could do with that platform, whether it be expanding the business that the company has in Colombia and Ecuador, migrating that platform into different countries… bring it to Puerto Rico very, very soon.

If and when that happens, I think that it is going to be the best technology out there in payment processing,” Rodríguez asserted.

Prior to acquiring PlacetoPay’s shares, Evertec had also bought or partnered with other companies in Latin America, such as Payguru in Chile, Citigroup’s Citibanamex in Mexico and Banco Santander Chile, among others. According to Schuessler, Evertec’s revenues outside of Puerto Rico have grown from $37 million to $80 million in the last four to five years. With this latest acquisition, the company now has clients in more than 27 countries and over 2,300 employees, of which 60 percent are based in Puerto Rico and 40 percent are scattered in other Latin American and Caribbean countries.

“We have a very good business in Puerto Rico but we’re not going to limit ourselves to Puerto Rico. Obviously, we continue to serve the Puerto Rico market well, continue bringing innovation, but the world is bigger than 100 x 35 [miles]. Evertec provides a great platform for people outside of Puerto Rico, [and] look at other companies outside of Puerto Rico, I really can’t see any other

multinational with a geographic expansion as large as us, competing with the top guys in the market,” Rodríguez affirmed.

THE WEEKLY JOURNAL asked if Evertec would eventually venture into other foreign markets, such as North America or Europe.

Schuessler replied that the company is focused on the Latin American and Caribbean regions because the company has a strategic advantage in terms of technological literacy and potential for expansion, whereas those other markets have a highly competitive environment. He also highlighted that Evertec is “uniquely positioned” to uphold Latin America because the majority of its workforce speaks Spanish and has experience doing business in the region.

For his part, Rodríguez stated that he is particularly excited about the company’s progress.

“I’m Puerto Rican. I am very proud of this because we are probably one of the few Puerto Rico-based companies that are actively growing in and out of Puerto Rico,” he said.

Meanwhile, Schuessler said that he hopes Evertec’s success story serves as an inspiration to local companies to export their products and services, as well as for foreign investors who are interested in pursuing business in Puerto Rico. “Yes, you can build a great business here despite all the negative media [coverage] you may read about the island,” he affirmed.

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House Democrats Blast the Trump Administration for Failing Puerto Rico

HUD, accused of violating the law by withholding over $10 billion in disaster aid, may be subjected to legal and congressional actions meant to force the agency to disburse the funds

and Urban Development’s (HUD) funding or seeking a mandamus to compel Secretary Ben Carson to disburse the monies.

Chairman David Price (D-NC) of the Transportation, Housing and Urban Development Appropriations Subcommittee also revealed that the Office of the Inspector General was investigating whether the stalling of funds had been a “deliberate action”.

“I don’t think lawless is too strong a word.

This is very unusual behavior and so we have Cynthia López Cabán @cynthia_lope clopez@wjournal.com to think ourselves what kind of options remain when the normal recourse does not work. fter accusing the Trump There are ways to get HUD’s attention. There Administration of illegally are ways to get the secretary’s attention through delaying the federal disaster the appropriations process,” Price told reporters aid allocated to Puerto Rico during a press conference in Washington, D.C. almost two years ago, House last Thursday.

Democrats didn’t discard “That is clearly an option that we would have the idea of taking escalating to consider,” he added, about the possibility of measures like cutting the Department of Housing opting for a legal remedy.

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>Archive

/ Wednesday, December 11, 2019

On Sept. 20, 2017, Hurricane Maria pummeled the island causing more than $100 million in damages and almost 3,000 deaths. To this day, some 30,000 houses still have emergency blue tarp roofs.

Despite the fact that Congress allocated $8.2 billion in disaster relief through the Community Development Block Grant-Disaster Recovery (CDBG-DR) four months after the disaster, HUD has failed to award the funds and even ignored the Sept. 4 statutory deadline to issue a Federal Register notice detailing the process the government of Puerto Rico must follow to access the funds. Another $1.9 billion was approved for electric grid upgrades. The notice is just the first -of many steps- before HUD actually awards the money.

At the beginning of August, Carson announced that HUD would delay the disaster prevention funds to Puerto Rico, distributing the money separately from aid for nine states, due

/ Wednesday, December 11, 2019

to concerns over corruption and financial mismanagement. He also revealed a plan to appointment a monitor to oversee the administration of disaster relief allocated to the island, a designation that is still pending.

Price, Nita M. Lowey (D-NY), Ben Ray Luján (D-NM), Katherine Clark (D-MA), Joaquin Castro (D-TX), Darren Soto (D-FL), and Stacey E. Plaskett (D-USVI), blasted Carson and Trump for HUD’s unreasonably slow response to the island’s situation, and demanded that the notices be issued without further delay.

“More than 2 years after Hurricane Maria destroyed their homes, businesses and public infrastructure, Americans in Puerto Rico are still without much-needed relief and recovery assistance because of perpetual and illegal stonewalling by the Trump administration,” pointed out Lowey, House Appropriations Committee Chairwoman.

“It’s unfathomable that most of this money hasn’t gotten there yet. The question is: President Trump are you going to end your personal vendetta against Puerto Rico and finally do the right thing. These are Americans down on the island,” added Soto, co-chair of the Congressional Hispanic Caucus Puerto Rico Task Force.

Price also rebutted the administration’s constant claims of widespread corruption on the island.

“There isn’t widespread corruption. The HUD inspector general investigating potential issues in Puerto Rico has already conducted what we call a capacity review. Of course, any time you are spending disaster aid you need to make sure that it is properly expended, that you have proper control and proper oversight. My understanding is that the IG has found there is no evidence of widespread corruption in the housing authority in Puerto Rico or in other agencies. So, the charges are exaggerated,” Price

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indicated.

“The notice is not a checkpoint in terms of corruption or abuse of funds. There are many checkpoints down the line at which oversight can be exercised. All we want to do is to get the process going so the grantees can formulate the action plans that will be reviewed and approved

by HUD. Then there will be a grant agreement executed. The notion that the notice stage is the one where all these concerns need to be brought to bear is simply not correct and Chairman David Price (D-NC) of the Transportation, Housing and Urban DevelopHUD representatives ment Appropriations Subcommittee stated that the Office of the Inspector General under questions was investigating whether the stalling of funds had been a “deliberate action”.>AP acknowledged that much. So, it is a bogus charge.”

In response to her colleague’s denunciations and condemnations, resident commissioner Jenniffer González, chair of the Puerto Rico Republican Party, said in a press release that she spoke with Carson and addressed the issue personally.

“The secretary informed the commissioner that the notices will be issued in the coming weeks, releasing the $8.2 billion in mitigation funds in tranches,” indicated the written statement.

My understanding is that the IG has found there is no evidence of widespread corruption in the housing authority in Puerto Rico or in other agencies. So, the charges are exaggerated.

FEMA Meets with Local Officials

HUD is not the only agency moving at a slow pace. Last week, FEMA’s Acting Administrator Pete Gaynor met in San Juan with Gov. Wanda

FEMA’s Acting Administrator Pete Gaynor met in San Juan with Gov. Wanda Vázquez and mayors from Bayamón, Loíza, Ponce and Villalba to address concerns regarding the disbursement of funds, and possible strategies to continue the recovery process.>Courtesy FEMA

-David Price, chairman of the Transportation, Housing and Urban Development Appropriations Subcommittee

Vázquez and mayors from Bayamón, Loíza, Ponce and Villalba to address concerns about the disbursement of funds and possible strategies to continue the recovery process.

During the visit to the island, Gaynor reiterated the joint priorities of FEMA and Puerto Rico’s Central Office for Recovery, Reconstruction and Resilience (COR3), while the mayors asked the federal agency to expedite the disbursement of recovery funding, especially an acceleration of the obligation for small projects like parks and community centers which cost $123,100 or less.

“What we expressed here today are the same concerns of all the mayors across the island.

My priority was to talk about our recreational facilities, so we can provide areas so that our residents can feel like things are getting back to normal,” said Loiza Mayor Julia Nazario.

FEMA highlighted that since Gaynor and Gov. Vázquez met in Washington, D.C. on Sept. 12, the agency has obligated over $111.5 million for emergency work, debris removal and permanent work to help the island’s communities recover.

To date, nearly $6 billion has been obligated under FEMA’s Public Assistance program.

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/ Wednesday, December 11, 2019

Market Sounding Released for PREPA’s Public-Private Partnership P3A to consider participants’ feedback for upcoming processes

T Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

he Puerto Rico Public-Private Partnerships Authority (P3A) released last week an invitation for private operators who are interested in forming an Operation and Maintenance agreement to be in charge of the Puerto Rico Electric Power Authority’s (PREPA) transmission and distribution system.

In this initial stage of the process, called market sounding, market participants are encouraged to provide feedback on the proposed generationfocused transformation process of the corporation that is solely responsible for powering the entire jurisdiction of Puerto Rico. According to the P3A, PREPA is currently “a vertically-integrated utility serving approximately 1.5 million customers across Puerto Rico.”

Once the P3A’s administration receives input from interested participants, the agency will potentially incorporate it into the transaction process to then proceed to the request for qualifications process (RFQ), expected to be conducted between the last quarter of 2019 and the first quarter of 2020 (Q4 2019 - Q1 2020).

Participants are expected to answer a series of questions in the market sounding submission that is primarily focused on the private operator’s views on how PREPA’s power generation operations can be best transformed to improve its quality of service; their initial views on the opportunity to acquire all or a portion of PREPA’s generation fleet; interest and ability to provide operation and maintenance services, among others.

The P3A stated that parties who are interested in participating in the feedback request concerning a potential generation-focused transaction must

PREPA serves approximately 1.5 million clients across the entire jurisdiction of Puerto Rico. >Archive

submit written responses no later than Dec. 13, 2019. “Any submissions received after that date may be considered at P3A’s discretion,” the document reads. These submissions must be delivered via email at P3Genproject@p3.pr.gov.

“In addition to the written answers, please let us know if you would like to have the opportunity to further discuss your feedback directly with the P3A. The P3A intends to consider all feedback received in this process, whether or not such feedback is supplemented by a further meeting or discussion,” the public entity added.

After the passing of Hurricane Maria in 2017, it became evident that the corporation’s infrastructure was both archaic and unable to withstand large-scale weather events like storms, to which the island is especially vulnerable during summer and fall. PREPA’s debilitated state became more evident after the American Society of Civil Engineers issued a report card for Puerto Rico’s infrastructure last month, in which the electric power entity received a failing grade (F).

It is worth noting that both the present

administration and the Financial Oversight and Management Board (FOMB) appointed by the U.S. Congress in 2016 have continuously remarked their interest to eventually privatize Puerto Rico’s electric power utility, whose services and tariffs have been criticized.

Moreover, last year, the FOMB appointed financial adviser Citigroup Global Markets Inc. (Citi) as the lead investment adviser to restructure and privatize PREPA. As such, Citi—which was reportedly one of the banking entities responsible for driving PREPA into debt—will be involved in this process along with the P3A. Apart from the invitation, Citi released a PREPAowned generation opportunity overview which details a map and the corresponding technicalities of PREPA’s six power facilities: Aguirre, Cambalache, Costa Sur, Mayagüez, Palo Seco and San Juan. These have a combined maximum capacity of 4,416 megawatts (MW).

The documents can be accessed as “Generation Market Sounding Letter” and “PREPA Generation Opportunity Overview” at p3.pr.gov.

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/ Wednesday, December 11, 2019

Aerostar, managers of San Juan’s Luis Munoz Marin International Airport, reported a 20.2 percent increase in passenger traffic during November, when compared to the same month in 2018. >Archive

San Juan Airport Booming

Domestic and international traffic increased this year, when compared to 2018

P Yennifer Álvarez Jaimes

yalvarez@wjournalpr.com

@yalvarezjaimes

assenger traffic at the Luis Munoz Marín International Airport increased by 20.2 percent on Nov. 2019, when compared to Nov. 2018.

Grupo Aeroportuario del Sureste (ASUR) announced that from Nov. 1 through Nov. 30, 2019, the San Juan airport had 779,725 passengers, whereas for the same period in 2018 they had 648,928.

The domestic traffic increase last month was of 20.6 percent. On Nov. 2018, there were 580,658 registered passengers, while on Nov. 2019 there were 700,055 registered passengers.

International traffic had a surge of 16.7 percent on Nov. 2019. During Nov. 2018 there were 68,270 passengers, while on Nov. 2019 there were 79,670.

Year to date, during 2018, the airport registered 7,589,625 passengers, and so far, in 2019, the airport has registered 8,510,537 passengers.

Both domestic and international traffic registered an increase this year, when compared to 2018.

Domestic traffic increased 12.4 percent and international traffic, 9.6 percent.

The increase comes just as carriers like Spirit and Frontier, among others, continue to expand their service to the island. Puerto Rico has managed to attract a major wave of new air routes from the mainland United States.

Just last month, Frontier launched three new routes to Puerto Rico. The carrier added new thrice-weekly flights from Miami to San Juan, new daily service from Newark Liberty International Airport to San Juan, and four new weekly flights from Tampa to San Juan. The Miami-Puerto Rico flights will run on Tuesdays, Thursdays and Sundays. The Tampa-Puerto Rico flights will operate on Mondays, Wednesdays, Fridays and Saturdays.

Last September, the company that manages the Luis Muñoz Marín International Airport, Aerostar Airport Holdings, announced that, at a cost of $200 million, it intends to embark on a fiveyear expansion and improvement plan that will renovate and modernize the airport complex to meet demands from visitors.

The plan includes improvements to the areas where the aircrafts operate and land; the

restoration of more than one million square feet of roof on the airport terminals, as well as other structural areas; the reconstruction of runway 826; the culmination of the ‘taxiway’ that connects the terminals and two main runways; improvements to the ramps and outdoor areas; and improvements and repairs in Terminal D.

New Advertising Strategy

With an initial investment of $2 million, Innovative Media company will start an aggressive promotion of the Luis Muñoz Marín International Airport.

The six-year-old Puerto Rican company that manages the marketing for companies such as Metropistas and several of the island’s municipalities, will focus on modernizing the image of the airport with new technological advances that are already available in European countries and other places like Indonesia.

“It is a new stage for digital advertising. Before, promotions were made in print media, but that changed. We are going to work on the ‘indoor’ and ‘outdoor’ part of the airport which is the first and last impression on the visitor,” said David Acosta, president of Innovative Media.

The company will use giant screens, as well as holograms in different sizes and formats, which will create stunning 3D images.

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HUBZone Program Aims to Reignite Puerto Rico’s economy Puerto Rico is currently 82 percent HUBZone-designated while the U.S. Virgin Islands is 100 percent HUBZonedesignated

T Yennifer Álvarez

yalvarez@wjournalpr.com

@yalvarezjaimes

he Historically Underutilized Business Zones (HUBzones) program began in 1997 with the promise of stimulating distressed communities by using federal contracting incentives to reverse unemployment, reduce poverty

and create jobs.

Puerto Rico is currently 82 percent HUBZonedesignated and the U.S. Virgin Islands is 100 percent.

The U.S. Small Business Administration’s (SBA) final rule issued, effective on Dec. 26, 2019, will make the program more attractive to small businesses, according to the federal agency.

“The exciting improvements outlined in this rule were designed to address longstanding uncertainty from both small businesses contemplating an investment in a designated HUBZone, as well as government agencies which seek to use HUBZone companies. We anticipate that these impactful changes will lead to the increased use of HUBZone certified small businesses across the country,” said Acting SBA Administrator Chris Pilkerton.

“Further, additional program enhancements which will expand the HUBZone footprint and provide greater support to HUBZone eligible small businesses will allow contracting officers to better identify more HUBZone firms and get federal contracts into the hands of those businesses,” he added.

To be eligible for a HUBZone certification, a business must have its office in a HUBZone and employ at least 35 percent of its workers from a HUBZone.

In addition, it must be at least 51 percent owned and controlled by U.S. citizens, a Native American tribe, agricultural cooperative or Community Development Corporation, and be a small business according to the North American Industry Classification System (NAICS).

The SBA encourages small businesses to attend its free, comprehensive monthly workshops at

The SBA invites small business owners to their free, comprehensive monthly workshops at their district office to learn how they can become certified under the HUBZone contracting program. >Yennifer Álvarez

by hurricanes Irma and Maria, it is also true that our entrepreneurs are resilient and persevering.

Our results speak for themselves. Small businesses continue to start and grow, and they look to the SBA to help meet SBA Loans in Puerto their financial needs.”

Rico and U.S. Virgin The SBA approved Islands Increase 35 384 loans for $56.7 Percent during FY million under the 2019 agency’s 7(a) Loan SBA approved 439 Guaranty program, loans for $78.2 million which provides to small businesses in financing for a -Acting SBA Administrator Puerto Rico and the U.S. variety of general Chris Pilkerton Virgin Islands during business purposes, fiscal year 2019, a 35 such as working and 28 percent increase, capital, expansion or respectively, over the renovation of facilities, the purchase of machinery previous year. and equipment, and the purchase of land, among “Fiscal year 2019 brought with it many challenges, others. Through its Certified Development Company program --designed to promote economic but also much success,” said SBA Puerto Rico and development by creating jobs through long-term, U.S. Virgin Islands District Director Yvette T. Collazo. fixed financing-- the SBA delivered 55 loans for “While it is true that our economy continues to recover two years after the devastation left behind $21.5 million.

their district office to learn how they can become certified under the HUBZone contracting program and increase their chances of doing business with the federal government.

We anticipate that these impactful changes will lead to the increased use of HUBZone certified small businesses across the country.

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/ Wednesday, December 11, 2019

By Edgardo Vicenty

By Inteligencia Económica

Entrepreneur & Financial Analyst

Restaurant Owners are the Next Taxi Drivers

F

ood delivery startups are taking over, and they will do to restaurant owners what Uber did to taxi drivers.

The industry’s growth is exploding, with over $13.8 billion in VC investments in the last two years. Sales for the sector are expected to reach $200 billion by 2025, up from $82 billion in 2018.

But, like their ride-hailing counterparts, these startups aren’t profitable, and their current business model appears to be unsustainable unless they somehow extract more value from every transaction. Uber’s plan for obtaining more value from its core business is simple, replace humans with self-driving vehicles and pocket the 75 percent of fares that drivers currently take.

Food delivery startups have a similar plan for taking privately owned restaurants out of the equation to increase their margins, and it looks very similar to Amazon’s playbook.

The first step, which is already playing out, is to create a marketplace, an app, that hooks users by offering them extreme convenience, great pricing and lots of choices, the everything store.

The second step is to enhance the users’ experience while at the same time, creating a massive barrier to entry by building out fulfillment centers, same day delivery. Delivery startups are doing this by creating “cloud or virtual” kitchens.

Virtual kitchens are restaurant locations explicitly designed for deliveries. These kitchens are located in high-traffic areas, are shared by multiple restaurants, and don’t have any seating area; in fact,

they don’t even do takeouts, only deliveries.

By sharing space and only working with delivery apps, virtual kitchens massively lower restaurants expenses, allowing them to open more locations and make more money. At first glance, this seems like an excellent opportunity for restaurants and chefs. Sadly, it’s not so simple.

By working within a virtual kitchen, restaurant owners effectively give up control of every part of their business, except for cooking, which makes them vulnerable to the platform deciding to squeeze them. Uber and Lyft drivers have consistently been victims of this as the two platforms have lowered rates, hurting the drivers’ bottom line.

The third step in Amazon’s playbook is to use the collected sales data to create “private-label brands,” which slowly but surely would take traditional restaurants out of business and transfer their profit margins to the delivery apps.

An example of this would be a delivery app identifying the top three sushi places in Puerto Rico, analyzing their top-grossing menu items, and then hiring chefs to create similar plates to be sold under a new brand. Every time someone searched for sushi in the app, the new brand could be placed at no cost, as the top search result and offer customers exactly what they want at a lower price.

History doesn’t repeat itself, but it tends to rhyme. Restaurant owners should learn from the mistakes made by taxi drivers and consumer products selling online if they want to survive the 2020s. As an industry, they need to take control of their distribution platform or harder times will come.

Northern Region Remains Stable and Competitive

I

n keeping with our business intelligence model, we have developed an ample amount of economic, commercial and demographic indicators for every municipality in Puerto Rico, all of which are available at http:// EconomiaPR.com.

The creation of these indicators has led us to perform comparative analyses of municipalities and regions so that businesspeople and municipal governments can make intelligent and informed decisions.

In this article, and because of our alliance with the financial planning initiative known as “Tu Dinero Seguro”, we will discuss some of our findings regarding the northern part of Puerto Rico so that the residents of the area are better able to understand how the municipalities, and the region as a whole, behave.

Geographically speaking, we have defined the northern part of Puerto Rico as the area that runs from Dorado to Hatillo. Taken as a whole, the area enjoys relative economic stability because of things like the PR-22 highway, the management of which is outsourced to Metropistas, and its diverse ecosystem of anchor firms.

Economic Assets in the Northern Region The transportation

infrastructure lends the north of Puerto Rico an advantage over the south, which relies on the damaged PR-52 highway. Amongst the area’s most important companies are those that belong to the pharmaceutical industry, primarily located in Florida, Manatí and Barceloneta.

Manatí, home to many doctors, facilities and even a hotel for medical tourists, has established itself as a health industry hub.

Aside from housing an important shopping center which specializes in wellknown brands, Barceloneta has managed to hold on to its status a pharmaceutical hub.

Arecibo, the most densely populated municipality in the region, faces a lot of economic and fiscal hardships. Notwithstanding, it is trying to establish itself as a main tourist attraction through the development of Christopher Colombus’ statue and for housing the Arecibo Observatory.

In the short-term, the area is relying on regional government offices, educational institutions, commerce and the presence of two leaders in the coop movement, Coopaca and Zeno Gandía.

Hatillo remains an agricultural town and epicenter of the milk industry.

The town’s government continues to feed its tourism industry with the establishment of hotels and through activities like its emblematic mask festival.

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/ Wednesday, December 11, 2019

Daddy Yankee

Made History in San Juan A

The “Con Calma” tour is set to continue on Thursday, Dec. 12 and is scheduled to wrap up two days before the year ends, after a record 10 shows at the Coliseo of Puerto Rico

Yennifer Álvarez Jaimes

yalvarez@wjournalpr.com

@yalvarezjaimes

fter selling more than 11 million albums, and acquiring over 50 million followers on social media, Daddy Yankee’s “Con Calma” show at the José Miguel Agrelot Coliseum delighted with a journey through the hits of his almost 30-year career.

Daddy Yankee, who is considered one of the pioneers of reggaeton, made history with 10 shows sold in his return to the island after a twelve year absence.

The urban superstar spared no expense; investing in lights, 3D screens, platforms, pyrotechnic effects and technology to put on one of the most remarkable concerts in San Juan.

The “Big Boss”, as he is also known, kicked off the show with an impressive 3D image of a plane descending and landing on the stage, singing the

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>Photos by Gabriel López Albarrán

/ Wednesday, December 11, 2019

songs “Jefe” and “Que tire pa’ lante” followed by the international hit “Rompe”.

The 42-year-old is so proud of his beginnings at Villa Kennedy that he projected a 3D image of the San Juan public-housing project on the stage while singing a medley of songs with DJ Playero, one of the first reggaeton producers in Puerto Rico. Back in the 90s, DJ Playero made tapes that featured young freestylers and reggaeton artists like Daddy

Yankee.

At the first three highly danceable shows, he featured Ozuna, Wisin and Yandel, Luis Fonsi and Miss Universe 2006, Zuleyka Rivera; with the last two joining him to sing and dance “Despacito”. Bad Bunny, Zion and Lennox and Nicky Jam recorded videos of collaborations with Daddy Yankee which he displayed on a giant screen.

Daddy Yankee’s verbal wizardry further

impressed youngsters and adults while the star sang “Somos de la Calle” from a descending platform in the middle of the coliseum.

During the song “Con Calma”, there was a giant Daddy Yankee cartoon playing while bubble heads attired in the star’s many looks danced.

“It was my turn to open doors,” Daddy Yankee said after adding, “many did not know where Puerto Rico is and found out when they learned about reggaeton.”

Although a shooting at the coliseum was reported five hours after his third show on Saturday night, Dec. 7, there where no deaths or injuries reported and Daddy Yankee was able to continue his concert series without further security incidents.

“Hey, I know you got up to several news this morning, but nothing can damage the Merry Christmas we’re going to have here. To the people who vandalized the coliseum I say: they are still our brothers and we forgive them,” said Daddy Yankee last Sunday night, Dec.8.

As of press time, the Department of Public Safety doesn’t have any suspects in regards to the shooting and continue investigating.

After the two-and-a-half-hour show, Daddy Yankee closed his concert with “Gasolina” a kind of party anthem written in 2003 by him and reggaeton artist Eddie Dee, with help from a duo of dynamic reggaeton producers known as Luny Tunes.

Produced by Rafael Pina, “Con Calma” is set to continue on Thursday, Dec. 12 and is scheduled to wrap up two days before the year ends with a record 10 shows at San Juan’s most important venue.

The “Con Calma” tour record confirms that, without a doubt, Daddy Yankee has become an icon of Puerto Rican pride.

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/ Wednesday, December 11, 2019

Let Your Hair Down

and Indulge at Wicked Lily Oceanfront Dining

Wickedly good Condado restaurant officially opens this Friday the 13th

F Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

oodies, both local residents and tourists alike, now have another fine dining option in the heart of Condado: Wicked Lily Oceanfront Dining.

This sophisticated beach restaurant, with a relaxed and friendly atmosphere, and of course, innovative cuisine and great drinks, will officially open this Friday the 13th.

Partners Chris Friedland, Ryan O’Donnell and Lori Bluett, along with Puerto Rican Chef Érika Suárez, have teamed up to create a cheekily named oceanfront restaurant that surrounds guests with a lighthearted vibe and elevates comfort food to fine dining, for an experience that is both stimulating and uplifting.

Friedland, a grantee of Acts 20/22, explained to THE WEEKLY JOURNAL that he fell in love with the island and decided to invest in Condado. He and his partners bought the former Atlantic Beach Hotel on 1 Vending Street for $5.5 million and renovated the 42-room hotel and restaurant space for $3.5 million. The initiative has created about 60 jobs, not to mention that a local construction company, F&R Construction, was also involved in the effort.

“We believe in Puerto Rico. We are bullish and long on Puerto Rico,” Bluett said.

The hotel is being rebranded as The Tryst, with a future grand opening planned for Valentine’s Day. The name Wicked Lily is an obvious talking point.

What was the inspiration? “Lily is a strong woman.

She’s exotic, a little spicy and sexy. She comes from the sea. She’s a little bit mysterious. She drinks whiskey and rum,” Bluett said. >Photos Courtesy Wicked Lilly Wicked Lily is a feel-good place. The recipe:

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/ Wednesday, December 11, 2019

Puerto Rican Chef Érika Suárez offers comfort food to fine dining, for an experience that is both stimulating and uplifting.

simple, fresh ingredients, indicated Chef Érika Suárez. To which Friedland, added: “and a bit of naughty fun.”

Suárez is the creative culinary talent behind the wicked food and drinks at this chic venue. A

Salmon.

graduate of the Art Institute of Fort Lauderdale and a Certified Executive Chef by the American Culinary Federation, her career is highlighted by being the first female executive chef at Norwegian Cruise Line as well as Puerto Rico’s El Conquistador Resort. She has worked with such greats as Jeffrey Zacharia, José Garcés and Bartolo “Buddy” Valastro.

The menu is eclectic and draws on Asian, American Classic, French and Italian cuisines.

Playful menus, with good-humored headings and impish quotes such as: “My demons can’t swim in rum, but they sure try,” present dishes that are sophisticated but never pretentious.

A lunch menu offers reimagined lighter fare, such as chicken tikka pincho, with tandoori chicken, grilled naan and coriander raita, and shrimp po’boy—Cajun buttermilk rock shrimp and piquillo in a brioche bun. To start “or whenever,” guests can enjoy options such as truffle wings, lobster guacamole and bacon charred veggies, among others.

For dinner, staples include a 16 oz. Delmonicostyle ribeye, served with au jus and julienne fries; crab mac, with lump crab meat, orecchiette pasta, fresh cream and Parmesan; and a decadent dish named “Seashells,” consisting of little neck clams, razor clams, pei mussels, prawns, lemongrass fume and hon shimeji.

The sipping menu has been as carefully curated as the cuisine. Mixologist Frankie Díaz developed a menu of cocktails that blend fine spirits, fresh fruits, herbs and spices in unexpected combinations. Examples include the Ninfa, made with Don Q Añejo, vanilla vodka, fresh ginger, classic bitter and lemon, and Melao, which features Bombay Sapphire, St. Germain, sage and yuzu. A diverse list of sparkling, red and white wines, as well as premium and artisan beers, completes the offerings.

During a Chef’s Table luncheon, every dish became your correspondent’s favorite. Whether it was the salmon tartare, served with bacalao

Wings with truffle oil.

aioli and watercress salad; burrata cheese or the guacamole with lobster, all the dishes were a gourmet lover’s delight. The dishes use fresh, local ingredients. As is appropriate in a beachfront setting, the food is not heavy but melts in your mouth. Every dish delighted the palate, while the oceanfront ambience delighted the eyes.

The particular favorites for most were the crab and crackers with lump crab salad and grilled buttered saltine crackers; a jumbo peel ‘n eat shrimp served with angel hair fries; and ravioli with lechon asado, soy foam and wasabi tobiko caviar.

Love as the secret ingredient is quite evident here. I shall return!

Wicked Lily Oceanfront Dining is open daily for lunch and dinner, from 11:30 a.m. to 10:30 p.m.

The bar remains open until 12:30 a.m. during the week and until 1:30 a.m. on weekends.

For more information on Wicked Lily’s offerings, call them at 787-721-6901 or visit www. wickedlilypr.com. Find the venue on social media with the hashtag “wickedlilypr.”

Cod fritters.

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/ Wednesday, December 11, 2019

Circa Raw Cane Sugar:

A percentage the sales of Circa will go toward World Central Kitchen, founded by chef José Ándres. > Photos Courtesy Circa Raw Sugar

A New Sweetener

The new product is made in Puerto Rico and is also distributed in Europe, the Virgin Islands and the United States

P

Claudia Guerrero Negrón

cguerrero@wjournalpr.com

@cguerreronegron

roduced in the rich, volcanic soils of Boquete, Panama; home to Geisha Coffee, the most expensive in the world, Circa Raw Cane Sugar is the new, healthier brown sugar alternative being introduced in Puerto Rico.

The product will be manufactured and repackaged in Puerto Rico through Able Sales Company, to be distributed in Europe, the United States, Puerto Rico and the Virgin Islands.

The non-GMO, unrefined and unprocessed Circa sugar was born thanks to a collaboration between Jaime Fortuño, a local businessman and entrepreneur, and Anel Flores from the Central Azucarera de Alanje in Panama, where Circa Raw Cane Sugar is elaborated. Flores, who has over 40 years of experience in the sugar cane industry in Panama, is chairman of Circa Sugar LLC. The two friends came together when Hurricane Maria destroyed almost all of Fortuño’s coffee farm

Circa Raw Cane Sugar was presented at El Horno de Pane, where the pastry chef Carlos Ruiz, presented pastries created with the product.

harvest, leading him to reinvent himself in the sugar industry.

“Circa was a product of the reinvention we had to go through after Hurricane Maria, when many us in agribusiness lost all our crops; at the

very moment when Puerto Ricans chose to fully support local, high quality products, betting it all in order to survive. Circa Raw Cane Sugar is an example of this, meeting the standards of excellence we often look for and fail to find 100

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/ Wednesday, December 11, 2019

Circa was a product of the reinvention we had to go through after Hurricane Maria, when many us in agribusiness lost all our crops; at the very moment when Puerto Ricans chose to fully support local, high quality products, betting it all in order to survive.

-Jaime Fortuño, Circa Raw Cane Sugar Founder

percent [of the time]. Thanks to the support of many who bet on our talent and knowledge, this became a Puerto Rican brand which helped move the economy and has resulted in more jobs, “ said Fortuño in a statement.

Circa will be distributed by Ponce Caribbean Distributors to restaurants and coffee shops like El Horno de Pane, where baker and owner Carlos Ruiz presented a few of his pastries using the product. The chef explained how Circa gives the perfect touch of sweetness with no overpowering taste.

“Most brown sugars are white sugars colored with molasses, and that often ends up tasting too overpowering. I found with this sugar that the taste is more natural, not too strong,” said Ruiz.

Circa sugar, unlike other brown sugars, is naturally golden/brown due to the natural

At a small presentation in El Horno de Pane, spectators were able to see how the coloring in other brown sugars washes away while Circa’s remains intact.

coloring that the molasses provides. In a small demonstration at El Horno de Pane, spectators were able to see how the coloring in brown sugars washed away and Circa’s hue remained intact. The organic sugar was also produced using 100 percent renewable energy. The freshness of the product is maintained through the organic evaporating process of the cane juice, which leaves behind its components in sugar crystals.

Circa Raw Cane Sugar is a new, healthier alternative that is elaborated in the Boquete region of Panama.

Circa will be officially launched on Jan. 2020 at “Madrid Fusión”, the most important culinary event in Europe.

Ricardo Vélez, the renowned pastry chef behind Moulin Chocolat, a Madrid-based, gourmet pastry shop that has been operating for more than 12 years, will be Circa’s spokesperson at the event.

A Healthier Sugar with a Deeper Purpose

When Fortuño was searching for collaborators for his project, he ran into chef José Ándres, founder of World Central Kitchen, a non-profit organization that currently supports 55 local farms in hopes of strengthening Puerto Rico’s food security. When Fortuño made his pitch, the chef jumped on board and is now one of the project’s partners. Thus, a percentage of all sales of Circa will go toward World Central Kitchen.

Alexandra García, program manager for World Central Kitchen, stated that collaborations are important to achieving food security in Puerto Rico.

“World Central Kitchen is pleased to work with Circa sugar, Able Sales and other local partners through our Plough to Plate Program, which supports small farmers, fishermen and promising food businesses on the island in their development. Together, we can help decrease the amount of food that is imported, improve the supply of food producers and small business owners, and make healthy and sustainable products more readily available,” said García.

The two-pound package of sugar, which has an added component to preserve its purity, will be available from Jan. 2020 onward. For more information on Circa Raw Cane Sugar please visit http://www.circasugar.com or search for Circa Sugar on Facebook and Instagram.

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/ Wednesday, December 11, 2019

Embutidos Capin

Are a Different and Delicious Choice The sausages are single-handedly prepared by chef José Matthews Capin with fresh, local products at his home in Rincón

A Claudia Guerrero Negrón

cguerrero@wjournalpr.com

@cguerreronegron

fter living four years in New York, José Mathews Capin followed his boss’s advice and decided to follow his passion, moving back to Puerto Rico and starting his artisanal sausage company, Embutidos Capin.

Capin realized he had a true passion for artisanal sausage-making when he would arrive early to work to put in the hours his craft merited, what he refers to as a slow, tedious process that results in a therapeutic experience for the chef.

“He is very particular about the way the sausages are made. It is all him, I try not to get in the way because he is sort of a perfectionist. I help with the people aspect of the business,” said María Javier, Capin’s partner, who also helps him manage

Country Pâté sausage, mashed potatoes and mushroom stew. >Courtesy of Embutidos Capin

social media pages and maintain operations running. The pair have a room in their house dedicated to the production of the product.

The curated sausages, single-handedly prepared

by Capin, have four different recipes, Ocean Lab coffee stout pork sausage, which has mushrooms, onion and parsley; country pâté sausage which has pork, chicken, spices, mushrooms and herbs; chorizo sausage, which has pork, peppers and piperade, a stew of onion, green peppers and

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on his small business, which he still sees as a side hustle as he maintains his job as a chef in Estela.

Estela is a casual but fine-dining restaurant located in Rincón, where Capin and Javier moved after realizing the busy and clustered metropolitan hustle and bustle of San Juan did not allow them to dedicate the time needed for the project.

“In Rincón, everything is more laid back, and we have the time to work on the project. We could have never done that if we had stayed here,” said Javier, who works as legal assistant to a lawyer in Rincón.

A Taste of Art

The artisanal sausages are a great option for those who would like to try something different this Christmas season. >Courtesy of Embutidos Capin

gatherings,” said Capin. sautéed tomatoes; and mild green curry chicken, Not many options come to mind when thinking which has lemongrass, onions, garlic, cilantro, of ways to incorporate ginger and green sausage in our everyday pepper. Capin has routines, but Capin also worked on a assures the contrary. vegan option: a lentil, Hamburgers, hot dogs, quinoa and oat patty. pastas, sandwiches, Capin pre-cooks all of on the side with some the sausages as a way rice; the sausages can to prevent them from be incorporated and exploding once they enjoyed in a number are sautéed in a pan of ways. They are a by customers. great option for those “These sausages who would like to try are a great alternative something different this for people who Christmas season. are looking to try Graduated from the something different Escuela Hotelera de San and expand their Juan, one of the most palate. Usually, José Matthews Capin, entrepreneur recognized culinary Puerto Ricans don’t arts and hospitality like to experiment, they’re very schools in Puerto Rico, traditional, but this is Capin moved back to great for gifts, family Puerto Rico to focus

The pair shared their experiences as small business owners at their second pop-up dinner in Spiga, a small bakery and coffee shop in the Tetuán street of Old San Juan. The carefully thought-out menu featured dishes that complimented the sausages while still highlighting them as the main attractions.

As an appetizer, Capin had boquerones, pieces of ciabatta bread with grated tomato, herbs and anchovies on top. The vegetarian option was a roasted vegetable dish with a red pepper Romesco sauce, aioli and herbs. For dessert, sourdough bread topped with chocolate, smoked oil and ginger salt.

The pop-up dinners are part of an effort to spread the word and let customers try the sausages, which is how it all started. At Alameda restaurant in New York City, Capin’s boss let him include the sausages in the menu, and even allowed him to store them there for when customers made their orders. The same thing is being done at Estela Restaurant. Eventually, Capin would like to open his own space, ideally a small and cozy tapas locale that would feature spirits to pair with the sausages.

Javier and Capin travel to San Juan once or twice a week to deliver to restaurants, as well as to whoever has made an order through their social media pages.

You can contact Embutidos Capin at 787-3659339 or by visiting their page on Instagram at embutidoscapin.

These [artisanal] sausages are a great alternative for people who are looking to try something different and expand their palate. Usually, Puerto Ricans don’t like to experiment, they’re very traditional, but this is great for gifts, family gatherings.

-

>Courtesy Embutidos Capin

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Step by Step: Establishing Electric and Water Accounts

I

Hallee Patterson

Autoridad de Acueductos y Alcantarillados de Puerto Rico (AAA) Website: http://www.acueductospr.com Residential – New Service - Lease contract or property deed

>Josian Bruno

started my adventure to obtain new electrical and water accounts. I hope that you can learn from my experiences. I first looked online to see if it could be done without having to find a location and wait in line. There is no application online to establish accounts at either the water company (AAA) or the electric company (PREPA).

For the establishing our water account we went to Río Piedras. When we arrived, we went to the senior line and were given an express number that we assumed meant we would not have to wait long. Not true. When our number was called we presented our documents. However, the apartment’s address and corresponding meter number were wrong. Therefore, we had to return after we had the rental agreement modified. Do not take anything for granted. The government workers do not budge on what is required.

We had a similar experience at the electric company, except there was no senior line and the wait was over two hours. I can’t stress enough how important it is to bring the correct information and something to read, like THE WEEKLY JOURNAL. - Original Social Security card - Driver’s license -Water bill from previous tenant or meter number A deposit ranging from $60.00 to $85.00, depending on area, is required.

Connection of a new service may take up to working 3 days.

Commercial – New Service - Lease contract or deed - User Permit from ARPE (http://www.sip.pr.gov/ web/guest/ciudadano/permisos)* -Inspection from a licensed plumber if space did not have service for a year or more -Certificate of incorporation from the Puerto Rico Department of State -Federal EIN – Department of the Treasury -Corporate resolution or letter granting power to representative to sign contract -Identification of corporate representative A deposit from $125.00 and up, depending on type of business and space, is required.

Puerto Rico Electric Power Authority (PREPA)

Autoridad de Energía Eléctrica de Puerto Rico (AEE)

Website: http://www.aeepr.com Residential – New Service Documents needed: -Lease contract or property deed -Original Social Security card -Driver’s license -Electric bill from previous tenant or meter number A deposit ranging from $125.00 to $200.00, depending on area, is required.

Connection of a new service may take up to 3 working days.

Commercial – New Service -Lease contract or property deed -User Permit from ARPE (www.sip.pr.gov/web/ guest/ciudadano/permisos)* -Inspection from a licensed electrician if space did not have service for a year or more -Certificate of incorporation from Puerto Rico Department of State -Federal EIN – Department of the Treasury -Corporate resolution or letter granting power to representative to sign contract -Identification of corporate representative A deposit starting at $500.00, depending on type of business and space, is required.

Connection of a new service may take up to 3 working days.

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• Cuando las familias lo pierden todo por un desastre en su hogar • Cuando los militares puertorriqueños necesitan regresar a la isla en tiempos de emergencias • En apoyo a los veteranos ubicados en el Hospital de Veteranos y en las clínicas de veteranos alrededor de Puerto Rico • Para educar a nuestros niños y niñas sobre cómo prepararse y responder mejor ante los desastres Por todos a quienes ayudamos y por todos los que faltan por ayudar, dona hoy.

< The Weekly Journal > Wednesday, December 11, 2019

Siempre cerca de ti

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/ Wednesday, December 11, 2019

Christmas Boat Parade 2019 The event is hosted by the Club Naútico de San Juan. The parade is easily seen from Piers 6-8 in Old San Juan, the Pan American Pier and the San Antonio Canal area in San Juan Bay. When: Dec. 14 from 5:30 p.m. to 7:30 p.m.

Where: Club Naútico, San Juan

Winter Pride Fest 2019 This epic four-day celebration of queerness, equality and love will feature special performances by two of RuPaul’s Drag Race Superstars. Stay close to all the action and wake up just steps from the beach by booking your stay at one of the event’s official sponsors— Coquí del Mar Guest House and the Verdanza Hotel. For more information on event tickets, please e-mail: coquidelmar@gmail.com or call: (787) 220-4204 When: Dec. 12- Dec. 16 Where: Coquí del Mar Guest House, 2218 General del Valle St., Ocean Park, San Juan

Festival del Petate Festival del Gandul If the Puerto Rican holidays had a main star, it would be the traditional “arroz con gandules” (rice with pigeon peas). As part of Puerto Rico’s never-ending holiday season, the town of Villalba holds an annual pigeon pea festival. During the festival, attendees are invited to savor different culinary creations containing savory pigeon peas. Make sure not to miss out on the giant “asopao de gandules” (pigeon pea soup) that’s prepared every year— it feeds around 5,000 people!

When: Dec. 13- Dec. 15 Where: Plaza Pública de Villalba, Villalba

A festival honoring Sabana Grande’s long tradition of petate artisans. The petate is a palm tree that grows throughout the municipality’s Susúa Forest and is used by local artisans to create home decor objects, rugs, purses and more. The annual festival will be celebrated in the town’s main square, where attendees will enjoy live music, exhibitions, a local artisan market and food kiosks.

When: Dec. 13- Dec. 15 Where: Plaza Pública de Sabana Grande, Sabana Grande

Christmas Movie Concert The Orquesta Camerata Filarmónica presents its Christmas Movie Concert 2019. Don’t miss this one-night-only concert featuring songs from famous Christmas movies. The musicians will be performing songs from movies like “How the Grinch Stole Christmas,” “Home Alone,” “The Polar Express,” “Nightmare Before Christmas,” “Elf,” “Gremlins” and many more!

When: Dec. 15, 2019 at 5 p.m.

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

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Timbiriche Design 2019: #8 Edition Timbiriche is a design and plastic arts fair that features over 40 exhibitors. There will be artisans selling jewelry, ceramics, clothes and contemporary art.

When: Dec. 13- Dec. 15 Where: Puerto Rico Museum of Contemporary Art, Ponce de León Avenue, Santurce

Bazar Navideño en Ballajá A group of local artisans, Manos de Puerto Rico, is hosting a holiday bazaar in one of Old San Juan’s most emblematic structures— the Cuartel de Ballajá.

When: Dec. 13- Dec. 15 at 10 a.m.

Where: Cuartel de Ballajá, Norzagaray street, Old San Juan

Marc Anthony: Opus Tour Enjoy a night of salsa with one of Puerto Rico’s favorite sons— Marc Anthony! The interpreter of hit songs like “Vivir Mi Vida” and “Aguanile” will be presenting his Opus Tour at the Coliseo de Puerto Rico José Miguel Agrelot.

When: Dec. 15, 2019 at 8 p.m.

Where: Coliseo de Puerto Rico, 500 Arterial B. Ave., Hato Rey

Encuentro Nacional Santurce es Ley de Santeros This festival brings together over 100 of Puerto Rico’s best artisan woodcarvers, specifically those devoted solely to carving wooden “santos” (saints). The festival will feature live music, food kiosks and an artisan market. Make a day trip out of the festival and discover the mountainous town of Orocovis. This high-in-the-mountains town is known for their delicious longanizas— the island’s own version of Spanish chorizo and a must-try When: Dec. 15 at 9 a.m.

Where: Museo Orocoveño Celestino Avilés Meléndez, Orocovis

Santurce es Ley is a street art festival that gathers local and international muralists for a whole weekend – typically during the first weeks of December. For nearly a decade, Santurce es Ley has turned the district into Puerto Rico’s version of the Wynwood Arts District in Miami, showcasing a myriad of large scale works. You can enjoy masterpieces in the making while listening to live bands and DJs; grab a bite (local fritters are a must!); dance; and enjoy an icecold beer – all whilst you mingle with locals and make new friends.

When: Dec. 13- Dec. 15, 2019 Where: Cerra street, Santurce