Privatization of Puerto Rico's Public Services

Since PROMESA established the Financial Oversight and Management Board (FOMB) in 2016, Puerto Rico has undergone an aggressive privatization program that critics describe as a colonial fire sale of public assets.

LUMA Energy (2021): The most controversial privatization was the 15-year, $1.5 billion contract awarded to LUMA Energy (a consortium of Quanta Services and ATCO Ltd.) to manage Puerto Rico's electrical grid transmission and distribution. Since LUMA took over in June 2021:
- Average outage duration has increased
- Electricity rates have risen significantly
- Service quality has deteriorated, with frequent blackouts
- Customer service complaints have surged
- LUMA has failed to meet performance benchmarks

Other Privatizations:
- Highways: PR-22 and PR-5 toll roads were privatized through a 40-year lease
- Luis Muñoz Marín International Airport: Operations privatized through a public-private partnership
- Ferry Service: The public ferry serving Vieques and Culebra — essential for residents of the island municipalities — has been repeatedly proposed for privatization
- Public Schools: Hundreds of public schools were closed, with charter school expansion promoted

Colonial Context: The privatization program mirrors structural adjustment programs imposed by international financial institutions on developing countries — except Puerto Rico's is imposed by a congressionally appointed board on U.S. citizens. The pattern is consistent with colonial extraction: public assets built with public funds are transferred to private (often mainland-based) companies, with profits flowing off the island.

The fiscal control board has promoted privatization as essential to Puerto Rico's fiscal recovery. Critics argue it is a transfer of wealth from Puerto Ricans to mainland investors, facilitated by an unelected colonial authority.