The Fiscal Plan certified by the Financial Oversight and Management Board (FOMB) projects the amount of disaster recovery funds expected to impact Puerto Rico over the coming years. For the Public Assistance and Hazard Mitigation programs administered by the Central Office for Recovery, Reconstruction and Resiliency (COR3) and funded by the Federal Emergency Management Agency (FEMA), the Fiscal Plan estimates $7.855 billion in disbursements over the next three fiscal years, including the current one. The economic impact will be significant: economic growth, the creation of 30,000 jobs during this period (mostly in construction), and investment in roads and bridges, ports and airports, power generation, water and sewer systems, schools, universities, hospitals, government centers, courthouses, police stations, fire stations, recreational parks, sports facilities, industrial buildings, and more.

To achieve this, COR3 defined eight strategic goals, each with multiple initiatives that we are implementing to ensure agility and efficiency in FEMA disbursements, while maintaining full compliance and transparency with federal and state laws, regulations, policies, and guidelines.

Strategic Goal #1: Accelerate disbursements and provide capital to subrecipients.
In the first six months of this year, COR3 doubled disbursements for permanent works projects compared to the same period in 2020. Governor Pedro Pierluisi announced changes to COR3 processes to streamline FEMA disbursements, and together with AAFAF, we launched the $750 million Reconstruction Works Fund, which provides state-funded advances to be reimbursed with FEMA funds to move recovery projects forward, especially municipal ones. We are also working with the Office of Management and Budget (OGP) on a state program to advance 10% of the non-federal match for certain government agencies. At the same time, we are working with FEMA on other possible measures that could provide a dramatic boost to the island’s reconstruction.

Strategic Goal #2: Submit Hazard Mitigation proposals to FEMA and support their implementation.
FEMA allocated $4 billion to Puerto Rico for projects that mitigate future disasters and damage, aiming to build greater resilience (75% FEMA, 25% CDBG-MIT). To date, FEMA has approved 18 projects totaling $1.71 billion. FEMA and COR3 are evaluating over 550 projects to reach the program’s goal, focusing on areas such as transportation, energy, and climate change.

Strategic Goal #3: Advance and complete debris removal and private property demolition work.
FEMA provides funds for debris removal or demolition of privately-owned structures affected by a disaster if they pose an immediate threat to life, health, or public safety or if their removal benefits the economic recovery of the community. For Hurricane María, the first activities under this program have finally begun. Regarding the southern earthquakes, COR3 is working with the municipalities of Ponce, Peñuelas, Guayanilla, Guánica, and Yauco to help them move forward with the necessary work.

Strategic Goal #4: Actively collaborate with subrecipients to successfully complete projects.
The year 2020 saw significant progress in the obligation of FEMA projects, which has continued in 2021. Our focus is now on ensuring that projects are executed correctly and efficiently. So far, FEMA has approved more than $20 billion for nearly 6,300 permanent works projects under the Public Assistance program. COR3 provides technical assistance and project management oversight for these initiatives, especially those with the greatest economic and social impact.

Strategic Goal #5: Complete the obligation of recovery projects under FEMA review.
There are still over $4.2 billion and 2,400 Public Assistance projects pending FEMA obligation for Hurricane María. The goal is to complete these obligations by December 31, 2021. For the southern earthquakes, we are working with FEMA and applicants to accelerate the obligation of permanent works funds.

Strategic Goal #6: Complete the administrative closure of projects and disasters according to FEMA’s action plan.
COR3 is responsible for ensuring that disaster-related projects can be administratively closed, verifying that each job was completed in compliance with federal provisions. For example, the emergency categories for María must be closed by or before December 31, 2021.

Strategic Goal #7: Strengthen COR3’s organization to meet strategic goals, foster a culture of subrecipient success, and reinforce internal compliance and transparency processes.
We are continuously improving to ensure we have the talent, resources, processes, and tools needed to be effective and efficient—both in supporting our subrecipients in executing their projects and in ensuring full compliance with all applicable laws, regulations, policies, and guidelines.

Strategic Goal #8: Improve access to recovery information and facilitate planning and integration of efforts.
We have multiple initiatives to enhance our grant management platform, Disaster Recovery Solution, and our transparency portal, Recovery.pr. This will allow continued and closer collaboration with the Department of Housing and the CDBG-DR/MIT funds, as well as support the efforts and objectives of the Reconstruction Council. Easy access to data and information about reconstruction—with a focus on monitoring, supervision, and updates on the status and progress of each obligated project—will greatly benefit the private sector, government, municipalities, and the general public.

We are focused on these strategies to accelerate and achieve the reconstruction of Puerto Rico’s infrastructure—a pillar for the socioeconomic development of our people.