By The Star Staff
The Highways and Transportation Authority (HTA) has issued a request for proposals (RFP) seeking bids from firms that provide investment management services for some $980 million in proceeds that the HTA obtained from the public-private partnership agreement to manage four toll roads.
The RFP was posted on the Fiscal Agency and Financial Advisory Authority’s website. Interested parties have until March 15 to submit offers, the document noted.
The notice says the HTA’s overall investment objectives are, in order of priority, principal security, liquidity of funds and maximizing investment income. Investment practices and procedures must comply with federal and Puerto Rico laws and a written investment policy to be developed by the investment manager together with the HTA.
On Dec. 14, 2023, the HTA and the Puerto Rico Public-Private Partnerships Authority completed the financial closing of a long-term concession granted by HTA to Puerto Rico TollRoads LLC, owned by Spanish infrastructure operator Abertis Infraestructuras S.A. Under the concession agreement, Puerto Rico TollRoads LLC paid a concession fee to the HTA of $2.85 billion and assumed responsibility for operating, maintaining and improving the PR-20, PR-52, PR-53 and PR-66 toll roads extending across Puerto Rico for the next 40 years.
A portion of the initial amount was used to pay all of the HTA’s outstanding obligations and fund transaction expenses, with the remaining balance, estimated at approximately $980 million, to be used to fund projects for the construction, reconstruction and maintenance of non-toll roads to achieve a state of good repair and extend the life cycle of existing highway infrastructure, implement highway capacity enhancements, provide highway congestion relief, complete the Puerto Rico strategic highway network, and enhance multimodal transportation, including, but not limited to, completing streets, scenic byways, bicycle routes and pedestrian walkways, among other modes.
The HTA is requesting proposals from qualified firms to provide investment management and custodial services for the net proceeds.
The selected firm must provide credit analysis of investment instruments recommended for the portfolio, evaluate market risk and develop strategies that minimize its impact on the portfolio, and provide monthly/quarterly/annual reporting on the portfolio.