The Puerto Rico Supreme Court has accepted the entry of the Puerto Rico Industrialists Association (Asociación de Industriales) into the case between the government and LUMA Energy, in which the possible nullity of the privatizer’s contract is being debated. The organization, which has no legal connection to the case, enters to inform the court on a point of the controversy.
It seeks to defend legal certainty and the validity of the extension of LUMA Energy’s contract, warning of the serious economic consequences of invalidating an agreement signed by the government itself. The association stresses the need to respect government contracting. It argues that annulling a contract in force damages the island’s international credibility and the trust needed to do business and attract investment.
It warns that an adverse decision would put at risk the development of future infrastructure projects under the public-private partnership (APP) model in key sectors such as highways, ports, airports, housing, telecommunications and water systems. The group maintains that LUMA acted under the legal protection of the extension letter provided by the government and made substantial capital investments based on that term.