School Modernization PPP Boosts Construction Industry
As of Jan. 1, $544.8 million in contracts had been awarded for the School Modernization Public-Private Partnership (SMPPP), creating 3,225 jobs and counting in Puerto Rico, and contributing in large part to the recent increase in cement sales and production.
As a result of this public-private partnership (PPP), 70 to 100 direct jobs are being created each week, and those numbers are growing. In 2011, the number of construction jobs on the island increased by 2,500 to a total of 30,000. Industry sources believe that without the school-modernization program, dubbed Schools for the 21st Century, the construction industry would have suffered additional losses.
Puerto Rico’s school-modernization initiative involves a total investment of $756 million, financed by American Recovery & Reinvestment Act (ARRA) stimulus funds, in the construction and renovation of 103 schools throughout the island, with at least one school being renovated in every municipality. “We need to do more projects like these schools,” said Alejandro Brito, president of the Home Builders Association. “They keep construction companies afloat and workers employed until the residential construction market rebounds. Also, the cement companies don’t care whether they’re pouring cement in a school or a residential development.” Cement sales are currently 12% higher than they were during the same period last year.
There are 71 schools under construction and an additional five in the design and permitting phase. Five schools in the towns of Ciales (two), Arecibo, Bayamón and Ponce will be completely renovated. “The effect of the ARRA funds has taken time to impact the economy, because from designation to construction there is a lag due to the permitting process and the design,” Brito said. “I believe the ARRA projects will begin to have a significant positive impact on the economy this year.”
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