The Privatization Wave: Selling the Colony's Public Assets

The privatization of Puerto Rico's public infrastructure is the latest chapter in colonial extraction — selling the colony's assets to private corporations that answer to shareholders, not to the people of Puerto Rico.

The Privatizations:

1. Toll Roads (2011-2012):

   • PR-22 and PR-5 were privatized through a 40-year lease to a consortium
   • The upfront payment provided immediate revenue to the cash-strapped government
   • Toll rates increased — disproportionately affecting working-class commuters
   • The long-term revenue from the roads now flows to private investors instead of the public treasury

2. Luis Muñoz Marín International Airport (2013):

   • Puerto Rico's main international airport was privatized through a 40-year lease to Aerostar Airport Holdings
   • Aerostar is a joint venture between a Mexican company and a U.S. private equity firm
   • The privatization was promoted as a way to improve facilities and attract more airlines
   • Critics argued it transferred a strategic public asset to private hands at a discount

3. LUMA Energy (2021):

   • The most controversial privatization: the management and operation of Puerto Rico's electrical transmission and distribution system was contracted to LUMA Energy
   • LUMA is a consortium of ATCO (a Canadian company) and Quanta Services (a U.S. company)
   • The 15-year contract was awarded without competitive bidding
   • Since taking over, LUMA has been widely criticized: power outages have continued, rates have increased, and customer service has deteriorated
   • The privatization occurred while the island's power generation is being transitioned under a separate process

4. School Buildings:

   • Over 300 public schools were closed between 2017-2019
   • Many school buildings are being sold or repurposed — transferring public real estate to private hands
   • The closures disproportionately affected rural and low-income communities

The Colonial Dynamics:
1. Fiscal control board pressure: The FOMB has pushed privatization as a way to raise revenue and reduce government costs — regardless of the impact on public services
2. No democratic choice: Puerto Ricans did not choose privatization through normal democratic processes — it was imposed through the colonial fiscal control structure
3. Asset stripping: Selling public infrastructure during an economic crisis means selling at depressed prices — the public loses long-term value
4. Accountability gap: Private corporations are less transparent and less accountable to the public than government agencies
5. Profit extraction: Revenue from privatized assets flows to mainland and international investors — another form of colonial extraction

LUMA Energy — The Case Study:
LUMA's performance has become the defining example of failed privatization:
- Frequent and prolonged power outages continue
- Customer service has worsened
- Rates have increased
- Workers have protested the transition from PREPA to LUMA
- The company has not significantly improved grid resilience despite being contracted specifically for that purpose
- Protests demanding LUMA's ouster have become regular occurrences