tag:blogger.com,1999:blog-6432394575296718523.post8601935303198389156..comments2023-02-13T03:41:17.914-05:00Comments on The MJR Report: A WIND FARM FOR PUERTO RICO ! FINALLY !THE MJR REPORThttp://www.blogger.com/profile/17799759172492320310noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6432394575296718523.post-6551944498197184772011-10-30T21:43:00.478-04:002011-10-30T21:43:00.478-04:00It seems that we have no way out in Puerto Rico. ...It seems that we have no way out in Puerto Rico. Isntead of win win it's always lose lose.<br />MJMJnoreply@blogger.comtag:blogger.com,1999:blog-6432394575296718523.post-36787681257255926612011-10-30T21:39:21.797-04:002011-10-30T21:39:21.797-04:00From my experience in corporate banking I bet ther...From my experience in corporate banking I bet there is formal or implicit unlimited guarantee from the Puerto Rico government supporting the financing of the project. Otherwise, it would have been impossible to obtain the financing from private sources.<br /><br />The same happens with the construction of new hotels. The bulk of the financing comes from AFICA bonds and have the full fledge guaranty of the Puerto Rico government. And most of the "capital" provided by the project investors comes from funds invested by the Tourism Development Company. In summary, the government ends up lending or guarantying up to 97% of the total funds invested. <br /><br />Not a bad business for an investor. If the hotel is successful he wins millions of dollars. If it fails we end up paying the tab.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6432394575296718523.post-29582023213837170002011-10-30T20:26:26.453-04:002011-10-30T20:26:26.453-04:00Pardon my excepticism, but I have seen several of ...Pardon my excepticism, but I have seen several of these "clean energy" projects that become financial disasters.<br /><br />The essential ingredient for a financially successful wind farm is ... a strong, constant and reliable wind source, similar to the wind that exists in Denmark.<br /><br />See the Wikipedia article to feel the power: http://en.m.wikipedia.org/wiki/Wind_power_in_Denmark <br /><br />The problem in Santa Isabel? Its wind mojo doesn't come close to Denmark's.<br /><br />So, if you want to know the real impact of this wind power project on Puerto Rico, you have to read the fine print that defines who will bear the risk of wind non-performance.<br /><br />Who finances this project? Who is the lender? <br /><br />Is there a government guarantee to pay the lenders if the project doesn't generate sufficient revenue ?<br /><br />Who did the technical feasibility project? Who is the owner of the farm ? Large contributors of Fortuno? How much was paid to the Mayor, to the Senators & Representatives?Anonymousnoreply@blogger.com