The Fiscal Oversight Board (JSF) approved only 25% of the emergency reserve funds requested by the Puerto Rico government to rehabilitate five wells of the Aqueduct and Sewer Authority (AAA). The approved amount is $2,422,086 out of the requested $9,688,345, which will cover only the evaluation and pre-construction phase. This phase will assess the production capacity, water quality, environmental impact, rehabilitation costs, and long-term operation mode of the wells.
Only wells that meet technical, environmental, regulatory, operational, and fiscal requirements will proceed to the rehabilitation phase. The JSF requires a cost-benefit analysis for each well before authorizing additional funds. The analysis must include capital expenditures, operation and maintenance costs, and expected benefits.
The $2,422,086 will be transferred to the Infrastructure Financing Authority (AFI), which will grant interagency agreements with the AAA, the Department of Natural and Environmental Resources (DRNA), and the Department of Health. Each disbursement will require pre-authorization from the Office of Management and Budget (OGP), which will submit monthly expense reports to the JSF from October 31, 2026, to March 2027, or until the funds are depleted.