EXHIBIT 10

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 1 of 37
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Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 2 of 37
2

DISCLAIMER

The Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), the Government of Puerto Rico, its instrumentalities and agencies (the

“Government”), and each of their respective officers, directors, employees, agents, attorneys, advisors, members, partners or affiliates (collectively, with AAFAF

and the Government, the “Parties”) make no representation or warranty, express or implied, to any third party with respect to the information contained herein

and all Parties expressly disclaim any such representations or warranties. The Government has had to rely upon preliminary information and unaudited

financials. As such, AAFAF and the Government have made certain assumptions that may materially change once those financial statements are fully audited.

The Parties do not owe or accept any duty or responsibility to any reader or recipient of this presentation, whether in contract or tort, and shall not be liable for

or in respect of any loss, damage (including without limitation consequential damages or lost profits) or expense of whatsoever nature of such third party that

may be caused by, or alleged to be caused by, the use of this presentation or that is otherwise consequent upon the gaining of access to this document by

such third party. The Parties do not undertake any duty to update the information contained herein.

This document does not constitute an audit conducted in accordance with generally accepted auditing standards, an examination of internal controls or other

attestation or review services in accordance with standards established by the American Institute of Certified Public Accountants or any other organization.

Accordingly, the Parties do not express an opinion or any other form of assurance on the financial statements or any financial or other information or the internal

controls of the Government and the information contained herein. Any statements and assumptions contained in this document, whether forward-looking or

historical, are not guarantees of future performance and involve certain risks, uncertainties, estimates and other assumptions made in this document. The

economic and financial condition of the Government and its instrumentalities is affected by various legal, financial, social, economic, environmental,

governmental and political factors. These factors can be very complex, may vary from one fiscal year to the next and are frequently the result of actions taken

or not taken, not only by the Government, but also by Financial Oversight and Management Board for Puerto Rico and other third-party entities such as the

government of the United States. Because of the uncertainty and unpredictability of these factors, their impact cannot be included in the assumptions

contained in this document.

Future events and actual results may differ materially from any estimates, projections, or statements contained herein. Nothing in this document should be

considered as an express or implied commitment to do or take, or to refrain from taking, any action by AAFAF, the Government, or any government

instrumentality in the Government or an admission of any fact or future event. Nothing in this document shall be considered a solicitation, recommendation or

advice to any person to participate, pursue or support a particular course of action or transaction, to purchase or sell any security, or to make any investment

decision. By receiving this document, the recipient shall be deemed to have acknowledged and agreed to the terms of these limitations. This document may

contain capitalized terms that are not defined herein or may contain terms that are discussed in other documents or that are commonly understood. You

should make no assumptions about the meaning of capitalized terms that are not defined, and you should refer questions to AAFAF should clarification be

required.

This document does not constitute an offer to sell or the solicitation of an offer to buy or restructure any security, nor does it constitute an offer or commitment to

lend, syndicate or arrange a financing, underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction, or commit capital, or to participate in any trading strategies, and does not constitute legal, regulatory, accounting or tax advice to the recipient.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 3 of 37
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TABLE OF CONTENTS

Executive Summary – Timeline 4

Commonwealth Plan of Adjustment (“CWPOA”) 6

Completed Debt Restructurings 12

Debt Restructurings in Progress 15

Fiscal Achievements 20

Federal Funds 24

Puerto Rico is Positioned for Economic Growth 29

Conclusion 34

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Exhibit Page 4 of 37
4

Executive Summary – Timeline

March 15, 

2022

Title III – The Oversight Board files 

for Title III protection for the 

Commonwealth, COFINA, HTA, 

ERS, and PREPA.

Summer 2017

Plan of 

Adjustment

The Oversight 

Board files the 

first amended 

plan of 

adjustment.

February 2020

Hurricanes

Hurricanes María and 

Irma inflicted 

unprecedented 

damage on Puerto Rico 

and its infrastructure.

Fall 2017

Past Future

Governance 

Transition

Summer 2019 January 2021

Governance 

Transition

End 

2022

Targeted Date 

to Restructure 

PREPA

March 2022

Earthquakes

Puerto Rico suffered 

the most serious 

earthquakes in recent 

memory.

January 

2020

CWPOA Effective 

Date – CWPOA 

targeted effective 

date.

Mid 2022

Targeted Date to 

Restructure HTA

March 2020

COVID-19

Puerto Rico’s economics 

situation exacerbated by the 

COVID-19 pandemic, 

causing a reevaluation of 

February 2020 PSA.

January 18, 

2022

Eighth Amended Plan of 

Adjustment

Confirmation of the 

Commonwealth Plan of 

Adjustment to exit Title III.

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Exhibit Page 5 of 37
5

$555M

Puerto Rico 

Housing Finance 

Authority

~$74B 

PUBLIC DEBT OF PR 

GOVERNMENT & 

RELATED ENTITIES

Completed Debt 

Restructurings & Performing 

Credits

Resolved as Part of 

Commonwealth Plan 

of Adjustment

$4.7B

Government 

Development 

Bank for Puerto 

Rico

$4.6B

Puerto Rico 

Aqueduct & 

Sewer Authority

$17B Puerto Rico Sales 

Tax Financing 

Corporation

$13.7B

Commonwealth 

of Puerto Rico 

General 

Obligation Bonds

$2.5B

Puerto Rico 

Infrastructure 

Financing 

Authority

$529M

Puerto Rico 

Convention 

Center District 

Authority

$5.8B

Puerto Rico 

Highways & 

Transportation 

Authority

$4,671M

Puerto Rico 

Public Buildings 

Authority

$1.7B

Puerto Rico 

Public Finance 

Corporation

$3.2B

Employee 

Retirement 

System

$200M

Puerto Rico 

Industrial 

Development 

Company

$280M

Puerto Rico 

Ports Authority

$90M

Puerto Rico 

Tourism 

Development 

Fund

$395M

University of 

Puerto Rico

$9B

Puerto Rico 

Electric Power 

Authority

Largest & Most Complex Municipal Bankruptcy in U.S. History

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Exhibit Page 6 of 37
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PRIVILEGED & CONFIDENTIAL – PRELIMINARY DRAFT, SUBJECT TO MATERIAL CHANGE

Commonwealth Plan of Adjustment 

(“CWPOA”)

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Exhibit Page 7 of 37
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Puerto Rico is on Sound Fiscal Footing

34

7.4

Pre-POA (a) Post-POA (b)

Notes: (1) Estimated Pre-POA Commonwealth Claims includes original issue discount. Includes GO and GO Guaranteed, Clawback, MBA, ERS, and other estimated general unsecured claims. (2) Post POA Includes current interest and capital appreciation bonds. Excludes contingent value instrument 

and new debt at HTA. (3) Debt service includes $1.15 billion in GO and COFINA debt service and excludes: (i) the 5.375% GO CABs and (ii) the 5.000% GO CABs. (4) Own Source Revenues as projected in January 2022 Certified Fiscal Plan divided by that years Maximum Annual Tax-Supported Debt 

Service.

Reduction in Debt ($ in billions)1, 2 Key Points

§ Reduction of total debt service, including 

COFINA, from ~$90 billion to ~$34 billion, a 

62% decrease

§ Current Interest Maximum Annual Debt 

Service of $1.15 billion3

§ Reduction in debt service as a 

percentage of Own Source Revenues 

(“OSR”) of ~25 cents pre-restructuring to 

approximately 6.5 cents in FY2022 after 

effectiveness of CWPOA3, 4

§ Includes Contingent Value Instruments 

(“CVI”) based upon sharing of 

outperformance of 5.5% Sales and Use Tax 

Collections (“5.5% SUT”) and General Fund 

Rum Tax Collections, both subject to 

annual and lifetime caps

§ Inclusion of CVI allows for a sharing of 

upside on island between Government 

and Creditors

~78% 

Reduction

On January 18, 2022, 

Judge Swain confirmed 

the Commonwealth 

Modified 8th Amended 

Joint Plan of Adjustment, 

which marks a historic 

step in exiting Title III and 

concluding the largest 

restructuring of municipal 

debt in U.S. history. 

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Exhibit Page 8 of 37
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 -

 500

 1,000

 1,500

 2,000

 2,500

 3,000

 3,500

 4,000

 4,500

FY22FY24FY26FY28FY30FY32FY34FY36FY38FY40FY42FY44FY46FY48

GO Current Int.

CW Debt Service Pre-Plan($ in millions) CW Debt Service Post-Plan($ in millions)

The CWPOA reduces Maximum Annual Debt 

Service inclusive of COFINA from $4.2 billion to 

$1.15 billion1, a reduction of ~$3 billion, or 73%.

 -

 500

 1,000

 1,500

 2,000

 2,500

 3,000

 3,500

 4,000

 4,500

FY22FY24FY26FY28FY30FY32FY34FY36FY38FY40FY42FY44FY46FY48

Debt Service ex. COFINA

Notes: (1) Excludes payments on account of GO Capital Appreciation Bonds. New debt issued as part of the 2021 PSA has a 25-year maximum maturity, after which the only Commonwealth fixed obligation is existing COFINA Senior Lien debt. For the avoidance of doubt, above charts do not include 

annual CVI payments.

The financial restructuring 

of the Commonwealth 

has been a complex 

process, which was 

preceded by the 

successful debt 

restructurings for 

Government 

Development Bank and 

COFINA. The CWPOA 

ensures Puerto Rico has 

an affordable and 

predictable level of debt 

service.

Debt Service Reduction – Sustainable Debt Service Levels

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Exhibit Page 9 of 37
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CWPOA – Debt Sustainability

0.4 2.5 5.7

55.1

5.9

50%

20%

0%

10%

30%

40%

60%

Lowest 10 state 

average

U.S. average Highest 10 state 

average

Puerto Rico

Pre-POA

Puerto Rico 

Post-POA

231 1,494

3,890

16,662

2,261

$0

$10,000

$5,000

$15,000

$20,000

Lowest 10 state 

average

Puerto Rico 

Post-POA

Highest 10 state 

average

U.S. average Puerto Rico

Pre-POA

0.5 2.8 6.6

102.4

9.4

80%

20%

0%

40%

60%

100%

120%

Lowest 10 state 

average

U.S. average Highest 10 state 

average

Puerto Rico

Pre-POA

Puerto Rico 

Post-POA

0.9 4.3

8.6

28.1

6.5

40%

0%

30%

20%

10%

Lowest 10 state U.S. average

average

Highest 10 state 

average

Puerto Rico

Pre-POA

Puerto Rico 

Post-POA

Net tax-supported debt, % of GDP

Net tax-supported debt per capita, $/person

Net tax-supported debt to state personal income, %

Debt service, % of own-source revenues1

Notes: (1) Own revenues includes all Commonwealth-collected revenues and excludes all federal transfers as included in the January 2022 CFP. (2) “Puerto Rico Post-POA” figures are based on assumptions included in the January 2022 Certified Fiscal and net tax-supported debt which includes new 

General Obligation debt of ~$7.4 billion, excludes COFINA. Debt service based on $1.15 billion MADS Cap, excludes CABs. Sources: January 2022 Certified Fiscal Plan, Exhibit 31, pg. 74.

The Commonwealth is 

exiting Title III with a 

sustainable level of debt 

and debt service moving 

forward based on 

percentage of GDP, state 

personal income, debt 

per capita and own 

source revenues.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 10 of 37
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As part of the Commonwealth Plan of Adjustment, the Commonwealth of Puerto Rico expects to issue approximately $7.5 billion of General 

Obligation Restructured Bonds, Series 2022A.

Series 2022A Bonds – Current Interest Bonds

Term

Principal

Mandatory

Sinking Fund

Amort.

Interest

Amount

Total 

Debt Service

Interest 

Rate

7/1/2022 $376,515,000 $307,767,250 $684,282,250 5.000%

7/1/2023 $752,950,000 376,435,000 288,941,500 665,376,500 5.000%

7/1/2024 375,595,000 270,119,750 645,714,750 5.000%

7/1/2025 749,520,000 373,925,000 251,340,000 625,265,000 5.000%

7/1/2026 371,355,000 232,643,750 603,998,750 5.000%

7/1/2027 739,160,000 367,805,000 214,076,000 581,881,000 5.000%

7/1/2028 363,190,000 195,685,750 558,875,750 5.000%

7/1/2029 720,620,000 357,430,000 177,526,250 534,956,250 5.000%

7/1/2030 350,425,000 159,654,750 510,079,750 5.000%

7/1/2031 692,495,000 342,070,000 142,133,500 484,203,500 5.000%

7/1/2032 332,265,000 125,030,000 457,295,000 4.000%

7/1/2033 649,835,000 317,570,000 111,739,400 429,309,400 4.000%

7/1/2034 301,170,000 99,036,600 400,206,600 4.000%

7/1/2035 584,115,000 282,945,000 86,989,800 369,934,800 4.000%

7/1/2036 262,150,000 75,672,000 337,822,000 4.000%

7/1/2037 501,325,000 239,175,000 65,186,000 304,361,000 4.000%

7/1/2038 213,890,000 55,619,000 269,509,000 4.000%

7/1/2039 186,135,000 47,063,400 233,198,400 4.000%

7/1/2040 155,745,000 39,618,000 195,363,000 4.000%

7/1/2041 681,610,000 125,840,000 33,388,200 159,228,200 4.000%

7/1/2042 130,875,000 28,354,600 159,229,600 4.000%

7/1/2043 136,110,000 23,119,600 159,229,600 4.000%

7/1/2044 141,555,000 17,675,200 159,230,200 4.000%

7/1/2045 147,220,000 12,013,000 159,233,000 4.000%

7/1/2046 708,865,000 153,105,000 6,124,200 159,229,200 4.000%

Total $6,780,495,000 $6,780,495,000 $3,066,517,500 $9,847,012,500

Series 2022A Bonds – Capital Appreciation Bonds

Initial 

Accreted 

Value

Accreted Value at 

Redemption Date*

Maturity Value**

Interest 

Rate

7/1/2022 $ 100,862,061.30 $105,968,971.50 $116,970,000.00 5.000%

7/1/2023 96,003,057.15 105,969,766.35 111,335,000.00 5.000%

7/1/2024†† 91,376,871.30 105,970,000.00 105,970,000.00 5.000%

7/1/2029 $98,129,013.00 $149,997,523.50 $185,450,000.00 5.375%

7/1/2030 93,059,851.80 149,997,764.30 175,870,000.00 5.375%

7/1/2031 88,252,614.90 149,998,089.75 166,785,000.00 5.375%

7/1/2032 83,694,073.80 149,998,937.80 158,170,000.00 5.375%

7/1/2033†† 79,371,000.00 150,000,000.00 150,000,000.00 5.375%

* Equals the original principal amount, plus interest accreted to the stated redemption date.

** Equals the total Accreted Value that would be represented by the portion of the capital appreciation 

term bond being redeemed if it were held to maturity.

†† Stated Maturity.

CWPOA – General Obligation Restructured Bonds, Series 2022A

Full disclosure available on EMMA.

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Exhibit Page 11 of 37
11

CWPOA – Contingent Value Instrument

Sales and Use Tax (“SUT”) Portion of the 

CVI Rum Tax Portion of the Clawback CVI

Metric to Measure 

Outperformance

§ Outperformance on 5.5% SUT collections 

above the May 2020 Commonwealth 

Certified Fiscal Plan Projections

§ Outperformance on waterfall general fund rum 

tax collections above the April 2021 

Commonwealth Certified Fiscal Plan Projections

Annual Payment

§ Lesser of:

‒ 90% of cumulative outperformance

‒ 90% of annual outperformance

‒ Annual cap of $375 million

§ Lesser of:

‒ 40% of cumulative outperformance of waterfall 

general fund rum tax collections above the 

outperformance metric, starting on July 1, 2021, 

less payments made to the PRIFA Trust on account 

of previous Rum Tax CVI annual payments;

‒ 50% of annual outperformance of waterfall 

general fund rum tax collections above the 

outperformance metric, measured at the 

conclusion of each fiscal year. 

‒ Annual cap of $30 million.

Annual Cap § $375 million § $30 million

Lifetime Cap § GO CVI: $3.5 billion

§ Clawback CVI: $5.2 billion

§ ~$1.3 billion (together with PRIFA CVI payouts 

from the SUT Outperformance).

Cap on Supplemental 

Cover Over Revenues § N/A § Maximum amount of Supplemental Cover Over Revenues of $88 million

Term § GO CVI: 22 years

§ Clawback CVI: 30 years § 30 years

Notes: (1) “Supplemental cover over” is the $2.75 incremental rum tax cover over (i.e., above the $10.50 base cover over).

The Contingent Value 

Instrument (“CVI”) will 

only pay creditors in the 

case that actual 

collections outperform

the metrics included in 

the respective Certified 

Fiscal Plans used for 

outperformance 

measurement. The key 

terms of the CVI include:

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Exhibit Page 12 of 37
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PRIVILEGED & CONFIDENTIAL – PRELIMINARY DRAFT, SUBJECT TO MATERIAL CHANGE

Completed Debt Restructurings

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Exhibit Page 13 of 37
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Debt Restructurings – Completed

Completed Debt Restructurings ($ in millions)

45%

Savings

17%

Savings

27%

Savings

Restructuring 

resulted in the 

termination of 

100% of CW 

Guarantee and 

amended 

terms favorable 

to PRASA

4,723 

2,598 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Pre-Restructuring

Claim Amt.

Post-Restructuring

Claim Amt.

GDB

(45%)

17,637 

12,803 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Pre-Restructuring

Claim Amt.

Post-Restructuring

Claim Amt.

COFINA

(27%)

219

181

0

50

100

150

200

250

Pre-Restructuring

Claim Amt.

Post-Restructuring

Claim Amt.

PRIFA-Ports

(17%)

982 982

0

200

400

600

800

1,000

1,200

Pre-Restructuring

Claim Amt.

Post-Restructuring

Claim Amt.

PRASA

0%

We have shown the 

political will to reach 

consensual deals, having 

restructured over $23 

billion of existing 

indebtedness through the 

various mechanisms 

available under 

PROMESA, resulting in a 

~30% reduction in debt 

across GDB, PRIFA-PORTS, 

COFINA and PRASA. 

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Exhibit Page 14 of 37
14

COFINA, Series 2019A (TX), 85.3 COFINA, Series 2019A (TX), 98.2 

COFINA, Series 2019A (TE), 95.4 

COFINA, Series 2019A (TE), 110.4 

GDB Recovery Authority, 74.4 

GDB Recovery Authority, 90.8 

 -

 20

 40

 60

 80

 100

 120

2/26/194/26/196/26/198/26/19

10/26/1912/26/19

2/26/204/26/206/26/208/26/20

10/26/2012/26/20

2/26/214/26/216/26/218/26/21

10/26/2112/26/21

COFINA, Series 2019A (TX) COFINA, Series 2019A (TE) GDB Recovery Authority

Successful Market Issuance – COFINA & GDB

3-Year Trading Chart (% of Par)

Onset of 

COVID-19

The restructured GDB and 

COFINA bonds have 

traded well with market 

reception post their 

respective issuances in 

December 2018 and 

February 2019, 

respectively.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 15 of 37
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PRIVILEGED & CONFIDENTIAL – PRELIMINARY DRAFT, SUBJECT TO MATERIAL CHANGE

Debt Restructurings in Process

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Exhibit Page 16 of 37
16

HTA Plan of Adjustment

§ HTA Debt: HTA Plan of Adjustment will include $1,245 million in new HTA debt. 

Ø HTA has the option to substitute debt with cash to lessen the long-term debt burden following 

HTA’s Title III exit.

Ø Includes the recognition of a net revenue pledge and security interest for the postreorganization HTA bonds. 

6.3 

1.2 

PRE-RESTRUCTURING 

CLAIM AMT.

POST-RESTRUCTURING 

CLAIM AMT.

~80%

Reduction

Reduction in Debt ($ in billions)2

Notes: (1) Timing is uncertain and subject to further changes. (2) Pre-Restructuring claim amount represents Clawback-related claim included as of the Commonwealth Title III petition date.

The Oversight Board and 

Government will 

restructure all legacy 

obligations at HTA 

through the Title III 

process consistent with 

the framework included 

in the PSA with Assured, 

National and other 

supporting holders. The 

Government parties have 

targeted a timeline for the 

HTA Title III Plan of 

Adjustment to prior to the 

end of Fiscal Year 2022.1

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 17 of 37
17

PREPA Restructuring

§ PREPA Restructuring: After the Commonwealth’s POA, the priority is negotiating an agreement that will allow PREPA to exit Title III prior

to the end of calendar year 2022.

1

§ Need for the End of PREPA Title III: It is imperative to exit bankruptcy at the end of calendar year 2022 to comply with the On-Island

renewable energy goals, along with focusing on economic development after exiting the last outstanding Title III case.

Notes: (1) Timing is uncertain and subject to further changes. (2) Claim amount represents principal outstanding of Power Revenue Bonds and does not include accrued and unpaid interest. Assuming maximum haircut of 32.5%, as 

contemplated in the May 2019 PREPA RSA.

8.5

5.7

Pre-Restructuring

Claim Amt.

Post-Restructuring

Claim Amt.

TERMINATED

PREPA – May 2019 PREPA RSA ($ in billions)2

~33%

Reduction

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 18 of 37
18

Other Credits

Puerto Rico 

Industrial 

Development 

Company 

(PRIDCO)

§ A standstill agreement was entered on February 23, 2022 and will expire April 30, 

2022. The Government and forbearing holders will holders will continue to 

negotiate in good faith to reach a resolution. 

Puerto Rico 

Ports Authority 

(PORTS)

§ The Government is working to resolve outstanding obligations at PORTS and 

concurrently working on a P3 Project for a concession of the Island’s main 

passenger cruise ship terminals.

University of 

Puerto Rico (UPR)

§ Currently operating under standstill agreement with the UPR Revenue Bondholders 

that is set to expire on May 31, 2022.

Debt Recovery 

Authority 

(DRA)

§ The Oversight Board entered a stipulation with the DRA to make best efforts to 

engage with AAFAF to resolve certain credits (CRIM, EDB, PR Housing Finance 

Authority) and develop plans for resolution of other credits (PORTS, HFA and GDB 

Retained Loans). 

Along with the HTA and 

PREPA restructuring, the 

Government and the 

Oversight Board are 

focused on resolving 

other outstanding credits.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 19 of 37
19

COFINA

$18 COFINA, $12 

GDB - $5 

GDB, $3 

PRASA - $5 

PRASA, $5 

PREPA - $9 

PREPA, $6*

Commonwealth

$26 

Commonwealth, 

$7 

HTA - $6 

HTA, $1 

Other Clawback Entities - $2 

 $-

 $10

 $20

 $30

 $40

 $50

 $60

 $70

 $80

Pre-PROMESA Claims 2022 Post-CWPOA

COFINA GDB PRASA PREPA Commonwealth HTA Other Clawback Entities

Sustainable Capital Structure

$70

$34

Commonwealth Pre-PROMESA Obligations

($ in billions)1, 2

Commonwealth Post-Plan Obligations

($ in billions)3

~51% 

Reduction

Notes: (1) Clawback claims include ~$2 billion PRIFA and ~$400 million CCDA and MBA. (2) Commonwealth includes GO/PBA claims of ~$19 billion, estimated GUCs of $2.75 billion, other miscellaneous claims of ~$1 billion, and ERS claims of ~$3 billion. (3) PREPA is not yet restructured and the 

Government of PR has recently terminated the 2019 PREPA RSA..

The Government has 

succeeded in 

restructuring 

approximately $70 billion 

in claims to $34 billion in 

new debt based on 

consummated 

restructurings and those 

to be finalized in the 

coming months.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 20 of 37
20

PRIVILEGED & CONFIDENTIAL – PRELIMINARY DRAFT, SUBJECT TO MATERIAL CHANGE Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 21 of 37
21

Notes: (1) Excludes PayGo pension expenses and debt service in FY2016 and FY2017. 

Actual General Fund Expenses, excluding PayGo ($ in millions)1, 2

3,392 4,176

3,118 2,809 2,702

4,598

4,010

3,957

3,540 3,327

7,990 8,186

7,074

6,349 6,029

 -

 1,000

 2,000

 3,000

 4,000

 5,000

 6,000

 7,000

 8,000

 9,000

FY2016 FY2017 FY2018 FY2019 FY2020

Payroll & Related Other Operating Expenses

The Government has 

continued to focus on 

balanced budgets and 

reducing General Fund 

related spending. Since 

Fiscal Year 2016, the 

Government has reduced 

spending by 

approximately 25% and

headcount by 16% (~20k 

positions).

Operational Restructuring – Expense Reduction

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 22 of 37
22

7,616 7,636 7,667

9,077

7,654

1,560 1,699 1,646

2,299

1,635

9,175 9,335 9,313

11,376

9,289

 -

 2,000

 4,000

 6,000

 8,000

 10,000

 12,000

FY2016 FY2017 FY2018 FY2019 FY2020

Other Fund Revenues SUT Revenues

Operational Restructuring – Revenue Increase

The Government has 

continued to focus on 

increasing revenues by 

implementing revenue 

enhancement measures 

and improving 

collections. General Fund 

revenues were trending 

in the right direction 

before the pandemic hit 

the island.

Source: Hacienda Website

Notes: SUT does not include COFINA, FAM, or Theater Fund Revenues. 

Net General Fund Revenues ($ in millions)

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 23 of 37
23

Gap / Surplus after Measures and Structural Reforms, $ in millions

Fiscal Plan – Improvement in Outlook

Note: (1) Pension trust achieves 100% funding in the middle of FY38.

 (1,500)

 (1,000)

 (500)

 -

 500

 1,000

 1,500

 2,000

 2,500

 3,000

FY22FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32FY33FY34FY35FY36FY37FY38FY39FY40FY41FY42FY43FY44FY45FY46FY47FY48FY49FY50FY51

Estimated unrestricted surplus after debt service and Pension Trust

contributions / withdrawal

Estimated unrestricted gap / surplus

Based on the projections in the 2022 CFP, 

Puerto Rico will have a surplus Post-Pension 

Trust withdrawals until FY2048.

The projections included in 

the January 2022 Certified 

Fiscal Plan include an 

improvement in Puerto 

Rico’s financial position

driven by a variety of 

factors including an 

improved macroeconomic 

outlook and increased 

federal Medicaid funding. 

The 2022 CFP additionally 

includes the go-forward 

Debt Service and projected 

CVI payments, along with 

contributions to the Pension 

Reserve Trust Fund.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 24 of 37
24

PRIVILEGED & CONFIDENTIAL – PRELIMINARY DRAFT, SUBJECT TO MATERIAL CHANGE

Federal Funds

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 25 of 37
25

Notes: (1) Does not include $675.9 million in funding related to COVID-19. (2) COR3 Transparency Portal: https://recovery.pr/en

§ The Federal Government has allocated over $68 billion in order to assist Puerto Rico in its recovery and 

rebuilding efforts.

§ As illustrated below, the Government has rapidly, and transparently, disbursed funds to utilize monies 

efficiently.

FEMA Funds1, 2 ($ in millions) Other Recovery Funds2 ($ in millions)

39

%

92

%

12

%

28

%

100

%

100

%

3,784 

23,467 

29,805 

13%

79%

100%

0%

20%

40%

60%

80%

100%

120%

 -

 5,000

 10,000

 15,000

 20,000

 25,000

 30,000

 35,000

Disbursed Obligated Allocated

14,875 

37,220 38,486 

39%

97% 100%

0%

20%

40%

60%

80%

100%

120%

 -

 5,000

 10,000

 15,000

 20,000

 25,000

 30,000

 35,000

 40,000

 45,000

Disbursed Obligated Allocated

Federal Funds – FEMA and Other Disaster Related Funds

Puerto Rico has 

experienced historic and 

unprecedented disasters 

since 2017. The impact of 

Hurricanes Irma and 

Maria, as well as a 

magnitude 6.4 

earthquake (and its 

subsequent aftershocks), 

has resulted in damage 

to the infrastructure, 

economy, and 

community.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 26 of 37
26

Key Goals & Expectations for 2022

+2,250 Projects 

(María & 

Earthquakes) +2,000 PW 

Obligations +$2.5 Billion 

Disbursed Funds 

(Federal Share)

Puerto Rico’s key goals 

and expectations for 2022 

involve implementing 

projects to help those 

affected by Hurricane 

María and other natural 

disasters and continuing 

to disburse federal funds. 

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 27 of 37
27

Federal Funds – COVID-19 Related Funds to Puerto Rico

$18.1 BILLION $7.4 BILLION $17.7 BILLION

Coronavirus Aid,

Relief, and Economic 

Security Act

Coronavirus Response 

and Relief 

Supplemental 

Appropriations Act

American

Rescue Plan Act

Programs with allocation over

$1 Billion:

§ $6.6B: Unemployment 

Insurance

§ $3.2B: Economic Business 

Support

§ $2.7B: Economic Impact 

Payments

§ $2.2B: State and Local 

Governments

Programs with allocation over 

$1 Billion:

§ $1.9B: Education Funds

§ $1.5B: Economic Impact 

Payments

§ $1.2B: Unemployment 

Insurance

§ $1.1B: Economic Business 

Support

§ $1.0B: Nutrition & Housing 

Support

Programs with allocation over

$1 Billion:

§ $4.2B: State and Local 

Governments

§ $3.7B: Education Funds

§ $3.6B: Economic Impact 

Payments

§ $2.8B: Unemployment Insurance

§ $1.4B: Hospitals & Healthcare 

Funds

§ $1.3B: Nutrition & Housing 

Support

$43.2 BILLION

Puerto Rico received 

substantial federal 

COVID-19 relief funding, 

estimated at more than 

$43.2 billion, to address 

the broad range of social, 

economic, and health 

impacts of COVID-19.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 28 of 37
28

Effective Deployment of Pandemic Relief Funds

Successfully implemented CRF 

programs, ranking 17th (top 3%) out of 

760 entities in total dollars spent1

1

Launched 26 relief programs to 

distribute CRF funds to impacted 

populations

2

Launched a repeatable accountability 

framework to ensure transparency 4

Public Health Response

Economic Development Spotlight: Tourism 

Impact

§ Lodging revenue in 2021 was 37% higher than 2019 and, for the 

first time ever, surpassed $1 billion

§ In June 2021, Puerto Rico’s travel spending was 28% higher than 

in 2019

§ Highest hotel demand since before Hurricane Maria 

Puerto Rico ranks 

3rd among U.S. 

States, Territories, 

and Federal Entities 

for doses of 

COVID-19 vaccine 

administered per 

100k people2

KEY PROGRAM 

ACCOMPLISHMENTS

REPRESENTATIVE OUTCOMES

3

in U.S.

r

d

Announced 33 initial CSFRF programs, 

across the 4 strategic priorities worth 

$2.1B

3

Notes: (1) As of September 30, 2021 - Pandemicoversight.gov. (2) Centers for Disease Control and Prevention as of Feb 8, 2022.

Puerto Rico’s strategic 

approach to evaluation 

and execution of its 

pandemic response 

ensured the effective and 

expedient deployment of 

COVID-19 Relief Funds.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 29 of 37
29

PRIVILEGED & CONFIDENTIAL – PRELIMINARY DRAFT, SUBJECT TO MATERIAL CHANGE

Puerto Rico is Positioned for Economic Growth

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 30 of 37
30

Return to Economic Growth

End of bankruptcy is at hand - cloud of uncertainty has been lifted

Government will take actions to institutionalize financial management best practices

needed to maintain stability 

Puerto Rico has unprecedented support from the federal government to invest in its 

infrastructure and people

Sustainable growth medium term requires improving competitiveness through structural 

reform implementation

The Government has a 

unique opportunity to 

seize the current moment.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 31 of 37
31

Return to Economic Growth – Reconstruction

2017 2018 2019 2020 2021 2022

Earthquakes 

COVID

General Elections

Hurricanes 

Irma & María

Essential Services Stabilization

Disaster Recovery Planning

Emergency PW’s (Cat A/B) 

Development/Execution

Small Projects Development

Development Permanent 

Work Projects (Cat C-G)

Disbursement of Emergency Work Obligated Funds Disbursement of Permanent Work 

Obligated Funds

KEY FOCUS:

§ Small Projects

§ Federal Grant 

Strategy 

(PREPA, PRDE)

§ Cat C-G Large 

Projects

KEY FOCUS: 

§ Federal Grant 

Strategy (PRASA, 

Public Housing)

§ Large & Small Cat 

C-G

§ Execute 

Architecture & 

Engineering 

Project Bids for Cat 

C-G

§ First Construction 

Bids & Projects for 

Cat C-G

§ Inspection and 

Obligations of 

2020 Earthquake 

Recovery Funds

MOVING FORWARD:

§ >2,000 Projects under 

Construction or Bids, 

including Federal 

Accelerated Grant 

Strategies for Cat C-G

§ Approval of ALL 404

Hazard Mitigation 

Projects

Transition from Obligation to Architecture & 

Engineering to Construction Phase

Puerto Rico is focused on 

its recovery and 

reconstruction efforts, 

transitioning from 

disbursement of 

Emergency Work 

Obligated Funds to the 

Disbursement of 

Permanent Work 

Obligated Funds. 

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 32 of 37
32

OUR FOCUS FOR COMPETITIVENESS

Talent

Ease of

Doing Business

Innovation 

Capabilities

Ø R&D

Ø Technology

Ø Access to 

Capital

Logistics

Energy

Tax & 

Incentive 

Policy

...committed to creating

long-lasting value for Puerto 

Rico

Return to Economic Growth – Clear and Measurable Goals

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 33 of 37
33

DESCRIPTION Dec. 2020 Dec. 2021

Unemployment Rate 10.5% 6.6%

The on-Island labor markets has seen strong improvement with additional progress to be made.

Labor Force Participation Rate 39.9% 44.2%

The labor participation rate on-Island continues to improve year-over-year.

Economic Activity Index 118.0 122.5

Economic activity has increased ~3.8% in the past year as measured by the

Puerto Rico EDB Activity Index.

Return to Economic Growth – Puerto Rico Labor Market

Source: Puerto Rico Economic Indicators per Economic Development Bank of Puerto Rico as of 2/18/2022.

The on-Island labor and 

economic activity has 

continued to see a strong 

recovery since 

December 2020 with a 

large pick up in labor 

participation rate and 

decreased 

unemployment.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 34 of 37
34

PRIVILEGED & CONFIDENTIAL – PRELIMINARY DRAFT, SUBJECT TO MATERIAL CHANGE

Conclusion

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 35 of 37
35

Concluding Remarks

§ We have put our finances in order.

§ We are completing the largest and most complex debt restructuring in the U.S. municipal market.

§ With the plan confirmation, we are ending our fiscal crisis with a plan that is fair to all stakeholders 

and sustainable for Puerto Rico.

§ Now our focus is on improving government services, prudent financial management, regaining 

access to the capital markets and economic development.

§ Our efforts and resources are concentrated on expanding our tax base through exports, reaching 

our full potential and increasing economic growth, jumpstarted with investments financed by 

federal stimulus, and reconstruction funding and complemented by creating the conditions for the 

private sector to prosper. 

Our future will be prosperous and we count with you to make it happen. And the moment is now.

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 36 of 37
36

Case:17-03283-LTS Doc#:23482-10 Filed:02/03/23 Entered:02/03/23 17:38:41 Desc:

Exhibit Page 37 of 37