EXHIBIT 30 

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 1 of 116
PRHTA New Fiscal Plan 2018 - 2023

As Certified by The Financial Oversight and Management Board for Puerto Rico

April 20, 2018

New HTA Fiscal Plan 1

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 2 of 116
Disclaimer

New HTA Fiscal Plan 2

▪The Financial Oversight and Management Board for Puerto Rico (the “FOMB,” or “Oversight Board”) has formulated this New Fiscal Plan based on, among other things, information obtained

from the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”) and the Puerto Rico Highways and Transportation Authority (“HTA” and together with AAFAF, the

“Government”).

▪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 Oversight Board cannot 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.

▪This New Fiscal Plan is directed to the Governor and Legislature of Puerto Rico based on underlying data obtained from the Government. No representations or warranties, express or

implied, are made by the Oversight Board with respect to such information.

▪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, the Oversight Board, 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 the Oversight Board, 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 is deemed to have acknowledged 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 the Oversight Board at comments@oversightboard.pr.gov should clarification be required.

▪This New Fiscal Plan is based on what the Oversight Board believes is the best information currently available to it. To the extent the Oversight Board becomes aware of additional

information after it certifies this New Fiscal Plan that the Oversight Board determines warrants a revision of this New Fiscal Plan, the Oversight Board will so revise it.

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 3 of 116
Table of Contents

New HTA Fiscal Plan 3

I. Executive Summary

II. Description of PRHTA

III. Infrastructure Agenda

IV. Current Situation with Baseline Financial Projection

V. Fiscal Measures with Financial Projections

VI. Liquidity Situation

VII. Debt Sustainability

VIII. Implementation Plan

Appendix: 

▪ FHWA MOU

▪ Summary Fiscal Plan Bridges to July 2017

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 4 of 116
I. EXECUTIVE SUMMARY

New HTA Fiscal Plan 4

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 5 of 116
Executive Summary (1/2)

New HTA Fiscal Plan

▪ Puerto Rico’s economic development requires an efficient transportation system that provides safety, sustainability 

and high-quality service for its citizens. A safe and efficient transportation system, with feasible options for public 

transit, is the right of every Puerto Rican, and an imperative for economic development. The Puerto Rico Highways and 

Transportation Authority (HTA) has four objectives aligned with this goal: (a) transit security and safety projects, (b) 

improvement of existing transportation infrastructure, (c) completing highway systems, and (d) traffic reduction. This 

mandate was made dramatically more difficult in the face of Hurricane Maria, which severely damaged the Island’s 

highway and public transit networks (current estimates of the damages are at $750M+ and growing). The New Fiscal 

Plan for HTA provides a roadmap for transforming not only the Authority, but also infrastructure across Puerto Rico to 

catalyze economic growth. 

▪ HTA must transform drastically to achieve its goals. Recent performance of this system has lagged nationwide targets. 

The Puerto Rico transportation system has among the highest fatality rate, poorest pavement conditions, and worst 

costs of congestion nationwide. HTA has amassed over $6B of debt, and has been unable to deliver on its CIP in recent 

years, despite underutilization of its workforce. Potential inflation in the construction market after Hurricane Maria 

constitutes a major risk that would adversely impact HTA’s ability to deliver on a necessary capital program. Given this 

inflation risk, the CIP will need to be regularly evaluated to ensure successful delivery. HTA faces the task of improving 

this performance as the responsible entity for developing, operating and maintaining Puerto Rico’s toll roads, highway 

network, and mass transportation facilities. 

▪ The New Fiscal Plan provides a roadmap to ensure a successful transformation of HTA. The New Fiscal Plan transforms 

HTA from an in-house infrastructure developer to an independently governed contract manager to deliver on a $3B 

capital program while capturing $413M in revenue and expense opportunities. The plan represents a step change in 

performance from the recent past. The governance and operating model will be dramatically transformed to orient 

around outcomes and efficient delivery. At its peak, the capital program is expected to increase by 5x the size of recent 

programs delivered, on the heels of an MOU with FHWA to improve delivery. Successful implementation of the New 

Fiscal Plan will ensure HTA is fiscally sustainable, maintains its assets in a state of good repair, reduces traffic in the 

system, and is prepared for future disasters.

5

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 6 of 116
Executive Summary (2/2)

Successfully implementing a comprehensive transportation sector transformation will require HTA to deliver on the 

following activities, as detailed in the New Fiscal Plan: 

▪ Improving governance and performance management: The New Fiscal Plan outlines a strategy to develop 

organizational KPIs to incentivize and monitor performance across the organization at the operational level and to 

ensure that the leaner organization can deliver on its capex plan. The New Fiscal Plan also calls for the recruitment 

and engagement a Board of diversified professionals to define and implement HTA’s long term strategy. 

▪ Pursuing greater revenue opportunities: The New Fiscal Plan details strategies to pursue additional operating 

revenue opportunities including toll increases and optimization (to ensure that purchasing power of toll revenues 

keeps up with inflation), discretionary federal funding (including the Community Development Block Grant 

allocation to Puerto Rico), and ancillary revenue opportunities from real estate, signage, and advertising. 

▪ Focusing on operational excellence including capital efficiency: The New Fiscal Plan optimizes capital expenditures 

through improved project prioritization based on economic benefits/safety, enhanced delivery, and soft cost 

reductions. To also optimize operating expenses, the New Fiscal Plan requires that certain contracts are re-bid 

using Title III processes to be in line with competitive benchmarks. To right-size the organization and become a 

best-in-class lean department of transportation, HTA will complete early retirement programs (Law 211) that are 

already in progress, and further workforce transition efforts to reduce personnel cost by 15%. HTA will also 

continue to evaluate concession opportunities that create value, and capture pension savings related to the reform 

of the Employees Retirement System as detailed in the New Commonwealth Fiscal Plan dated April 2018.

▪ Reducing traffic to drive economic growth: HTA will complete projects already in progress to reduce traffic (e.g. 

DTL, BRT) and plan for additional projects to further promote economic growth and revenue benefits. 

New HTA Fiscal Plan 6

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 7 of 116
II. DESCRIPTION OF PRHTA

New HTA Fiscal Plan 7

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 8 of 116
Puerto Rico Highways and Transportation Authority

New HTA Fiscal Plan 8

Lead Puerto Rico towards economic development through an efficient 

transportation system, safely and in accord with the environment, while 

procuring the delivery of excellent service

▪ HTA is a public corporation founded with the purpose of continuing the government’s effort of providing the public with the best highways, easing the 

flow of vehicles, and minimizing the risks and inconveniences that traffic congestions may cause.

▪ HTA is charged with constructing, operating, and maintaining Puerto Rico’s toll road network, major highways and mass transportation facilities, 

which are financed by revenue bonds, federal grants and specified tax revenues.

▪ The Puerto Rico State Highway System consists of a total of 4,605 miles:

Mission Vision

Develop and promote an integrated transportation system that, along with a 

highway infrastructure and service delivery, will facilitate the economic 

development of Puerto Rico in harmony with the environment

Breakdown by type of Road:

Toll Roads (incl. PR 22 & 5) – 185.6 

miles

Primary Roads (incl. Urban) – 986 

miles

Secondary & Tertiary Roads – 3,434 

miles

Total = 4,605 Miles

About PRHTA

SOURCE: http://www.dtop.gov.pr/historia.asp

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 9 of 116
HTA: An Evolving Mission

New HTA Fiscal Plan

1965

Creation of the 

Puerto Rico 

Highway Authority

1971

▪ HTA falls under DTOP’s 

umbrella through the 

Reorganization Plan Num 6, 

conceding its powers and 

duties to the Secretary

▪ Integration of the mass 

transportation sector 

through the successful 

establishment of exclusive 

lanes project for AMA buses 

is put in place

1991

The Secretary of DTOP 

grants the name 

Highways and 

Transportation Authority 

through Law 1, becoming 

the principal promoter 

and administrator of mass 

transportation public 

policies

The construction of 

Teodoro Moscoso 

Bridge is completed, 

becoming the first 

highway privatization 

project in PR and the 

US with an investment 

of $126M

1994

1990

Through Law 4, the Authority is 

empowered to implement P3 contracts 

with private entities for the 

construction, operation and 

maintenance of highways, bridges, 

avenues and any other traffic 

installation

1998

PRHTA approved resolution 98-06 

which included a change in the 

definition and name of “Traffic 

Facilities” to “Transportation 

Facilities.” Under this new definition, 

Tren Urbano and other transit 

facilities are included

2000

Law 207 vests the Authority with the 

power to directly invest in the 

development of parcels around train 

stations or any special district

2016

▪ Puerto Rico Oversight 

Management and Economic 

Stability ACT (PROMESA) 

becomes effective

▪ Memorandum of 

Understanding (MOU) is 

signed by the PR governor 

and US Dept. of 

Transportation

2015

Executive Order

2015-046

enables central 

government 

retention of 

PRHTArevenues

2014

▪ Toll Credits where implemented to

benefit HTA by using the credits to

substitute the required local share on

future Federally aided projects

▪ Law 41-2014 amended the Organic Act 

of PRHTA to vest its powers in a Board 

of Directors

2011

Concession Agreement 

granted to Autopista 

Metropolitana de PR, LLC 

to operate and maintain 

highways PR- 5 and PR22 May 

2017

FOMB files petition for 

relief under Title III of 

PROMESA on behalf of 

HTA (see next slide)

April 

2017

HTA files certifiedfiscal 

plan under PROMESA

July 

2017

Revised HTA 

fiscal planfiled

▪ Hurricane Maria hits Puerto 

Rico, causing widespread 

damage to infrastructure, 

including prolonged power 

outages, damage to toll 

facilities, roads, and bridges.

▪ Economic impact of Maria 

decreases tax and toll 

revenues, worsening HTA’s 

fiscal standing.

September 

2017

2018

HTA has identified 

more than $7500 M in 

damages from Maria, 

and remains in

recovery

9

SOURCE: http://www.dtop.gov.pr/carretera/det_content.asp?cn_id=217

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 10 of 116
Financial Sustainability, Federal Agencies & PROMESA

New HTA Fiscal Plan 10

▪ The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) establishes a 

process for the restructuring of debt towards sustainable levels but not before the certification of 

its Fiscal Plan by the Oversight Board. HTA has filed for Title III protections under PROMESA and will 

continue to work with all the federal agencies (including FTA & FHWA) as partners throughout the 

Title III process in order to achieve our common objectives.

▪ HTA receives about $158.8M per year from FTA and FHWA. Conditions of this funding require 

that the grantee demonstrates specific and well-defined technical, financial and organizational 

capabilities. There are federal requirements associated with continued operation and disposition 

of grant-funded assets that constrain HTA’s flexibility to some extent.

▪ FTA and FHWA agreements require continued operation of grant-funded assets, limiting HTA’s 

options for reducing operating costs of systems which relied on central government revenue 

which has since been retained.

▪ HTA recognizes that its continued partnership with Federal partners, including FHWA and FTA are

critical to the continued development of the Commonwealth’s transportation network and the

health of Puerto Rico’s economy. HTA will continue to work collaboratively and inclusively with

federal agencies to ensure it meets all federal funding requirements.

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 11 of 116
HTA as a grantee of the Federal Government

New HTA Fiscal Plan

HTA receives federal funds from two agencies, the Federal Transit Administration (FTA) and the Federal Highway Administration (FHWA). This funding requires a grantee to 

demonstrate that it has specific and well-defined technical, financial, and organizational capabilities.

11

1 Maximum available funding represents recurring annual payments and does not include emergency reconstruction grants. Maximum 

available funding may not equal that of obligated funds and/or actual expenditures. Amounts include penalties and $3.8M return from PR 

Transit Safety Commission. 

SOURCE: USC 23; Title 23 CFR

Provides financial and technical assistance to local public transit systems, including 

buses, subways, light rail, commuter rail, trolleys and ferries. The FTA also oversees 

safety measures and helps develop next-generation technology research.

Agency within the U.S Department of Transportation responsible for 

administering the federal-aid highway program and highway 

transportation programs of the Department of Transportation.

To become a grantee of FTA, HTA is required to meet the following minimum

criteria:

▪ Legal Capacity

▪ Technical Capacity

▪ Proven Financial Capacity

▪ Disadvantage Business Enterprise

▪ American with Disabilities Act Compliance

▪ Title IV (Civil Rights) 48 U.S.C §5301 et seq.

According to 23 U.S.C. § 302 and Title 23 of the Code of Federal 

Regulations, any state needs to be suitably equipped and organized to 

discharge to the satisfaction of the Secretary the duties required by this 

title. In the following areas:

▪ Payment procedures- Chapter 1, subchapter 8

▪ Planning/Environmental- Section 135, Chapter I, Subchapter E

▪ Design- Highway Standard/ Design Criteria- Section 109, Chapter I, 

Subchapter G

▪ Construction and Contracting Procedures- Chapter I, Subchapter G

▪ Transportation Infrastructure Management- Chapter I, Subchapter F

▪ Maintenance- Properly Maintenance all Roads- Section 116

▪ Highway Safety- Section 402, Chapter I, Subchapter II

▪ Right of Way and Environment- Chapter I, Subchapter H

Grantee 

Compliance 

Requirements

The default of HTA with any of its obligations (mainly bond debt) may trigger 

questions as to its financial capacity leading to a potential loss of federal funds. If, 

during the useful life of the property, the recipient unreasonably delayed or failed 

to use the federally assisted property for its originally intended purpose, recipients 

may be required to return the entire amount of federal assistance spent on the 

award or federally-assisted property. However, this Fiscal Plan is designed to 

mitigate this risk by closing any operational financial gap for the six-year period, 

subject to the realization of projected revenues, fiscal measures, and fund transfers 

from both Federal and PR Governments.

Non-compliance with federal laws and regulations or diversion of 

highway revenues may result in:

▪ Suspension of funding

▪ Lack of maintenance and essential services that will cause 

highways to deteriorate

▪ Transportation of goods and emergency services will be hindered

▪ HTA and FHWA are currently operating under an MOUwhich 

stipulated requirements to maintain funding – for additional 

information, see MOU slides in the Appendix.

Risks of NonCompliance

Max Available $138.8 million/year* $20 million/year*

Funding*

Agency

Description

FHWA FTA

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 12 of 116
HTA’s current organization has a total head count of 1,283

Source: January 2018 HTA roster provided by HTA Human Resources.

Relationships and offices via discussions with HTA executives and its consultants.

Secretary’s Office

14

Project 

Development 

and 

Construction

Emphasis in 

Capital 

Improvement 

Program

Contract 

management of 

outsourced 

transit 

operations

Operations

and 

maintenance

of toll roads

12

Infrastructure 

Directorate 749

Traffic and Toll 

Roads 

Directorate 204

HR & Labor 

Relations 

Directorate 51

Finance & 

Administration 

Directorate 138

Integrated 

Transport 

Directorate 18

Internal 

Security 

Office

4

Citizen 

Service 

Office 10

Federal 

Coord. 

Office 10

Federal 

Liaison 

Office 4

Property 

Administration 

Office

15

Communic.

Office

17

Civil Rights Office

5

Legal 

Advisory 

Office 19

Internal Audit

Office 16

Executive 

Director’s 

Office

9

Executive 

Assistant Director

Special relationship of counseling and coordination between offices or areas

Special relation between administrative and finance phases

Special relation between advisory offices that directly report to the Secretary and, at the same time, provide 

services and advice to the Executive Director

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 13 of 116
Before Maria, Puerto Rico’s road system was underperforming in nationwide 

Highways KPIs when compared to other states

New HTA Fiscal Plan

77%

11%

95%

27%

PR US

-86%

3%

21%

0%

22%

US

+600%

PR

55%

1%

18% -98%

PR US

85%

10%

68%

US

+580%

2%

40%

PR

1.08 1.96

PR US

1.892 +81%

0.52

9% 10%

PR US

0.45%

25%

-10%

Performance Metric Metric Results

1 Fatality Rate

% Pavement in Good 

Condition – Interstate 

(IS)

2

% Pavement in Bad 

Condition - Non-IS 5

% Pavement in Good 

Condition - Non-IS 4

% Pavement in Bad 

Condition - IS 3

Description

Ratio of total number of 

fatalities to the number of 

VMT (2015)

Pavement rating with an IRI 

value of less than 95 or Good 

condition (2014)

Pavement rating with an IRI 

value greater than 170 or Bad 

condition (2014)

Pavement rating with an IRI 

value of less than 95 or Good 

condition (2014)

Pavement rating with an IRI 

value greater than 170 or Bad 

condition (2014)

% of total bridge deck area 

classified as structurally 

deficient (2016)

Bridge Area Condition 

(NHS) 6

Bottom State

Top state

▪ National Safety Goal on 

is to have a significant 

reduction in the fatality 

rate, while target is set 

by state at 1.85 for 

fatalities by 2018.

▪ National goal is to 

maintain the highway 

infrastructure asset 

system in a state of good 

repair. 

▪ HTA will monitor 

performance against 

these key metrics, and 

strive to make 

improvements in road 

and bridge conditions 

and safety within its 

budgetary constraints. 

13

SOURCE: https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/812318; https://www.fhwa.dot.gov/bridge/nbi/no10/condition16.cfm;

https://www-fars.nhtsa.dot.gov/Crashes/CrashesTime.aspx; SHSP 2016

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 14 of 116
Impact of Hurricane Maria on PRHTA Operations and Finances

New HTA Fiscal Plan

▪ Infrastructure Damage: Roads, bridges, were damaged in the 

hurricane, and major projects were delayed due to the 

temporary realignment of resources towards recovery.HTA was 

unable to execute planned capital improvements, focusing 

instead on emergency repairs to bring infrastructure back

online.

▪ Public Transit Damage: Several Tren Urbano (TU) stations 

were damaged by Maria, with limitedservice returning in 

late December.

▪ Revenue: Revenue from operations were severely depleted in 

the wake of Hurricane Maria. Toll plazaswere damaged or left 

without power, TU and several bus lines were left temporarily 

inoperable, and both traffic and ridership were greatly

reduced.

▪ Economy: Hurricanes contributed to greater-thananticipated economic decline, leading to along-term 

reduction in revenue, traffic, andridership.

▪ Insurance and aid: FEMA grants and insurance proceeds are

expected to partially finance some capital improvement

projects necessitated by Maria’s damage, and offset some of

the negative economic impact of thestorm.

14

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 15 of 116
Hurricane Maria caused an estimated $114M in damages to HTA’s non-highway 

assets, almost all covered by ER funds and insurance

New HTA Fiscal Plan 15

▪ HTA’s direct loss assessment to-date indicate 

that Maria caused $71M in damages,

excluding damage to the highway network. 

▪ At the time received, the assessment 

(shown to the right) was only complete for 

62% of assessed categories.

▪ Assuming a linear distribution, HTA 

estimates total costs in the fiscal plan to be 

$114M. Additional loss estimates are likely.

▪ HTA estimates that the vast majority of the 

direct costs, or $108M, will be covered by 

emergency funds and insurance payments, 

with a local funding need of $6M. HTA will 

meet the local share of all additional federal 

funding it receives.

▪ Some indirect costs, including lost 

revenues may not be covered

Preliminary Damage Estimates. Subject to Change / Finalization

PW Assistance Project - PW Listing

PR Highway and Transportation Authority (PRHTA)

Category Sub-Category Costs

Force Account Labor and 

Equipment

Force Labor Account Payroll 184,111

Total 184,111

EmergencyProtective 

Measures

First Transit Buses for Military Personnel 44,686

First Transit Buses use duringEmergency 29,236

Security Protection for TollSystem 

Facilities

21,392

Health & Safety Inspections Facilities 3,500

Provision of Foods, Water and Other 

Essential Items to COE (Central 

Operacional de Emergencia )

20,287

First Transit Security Protection 63,000

Direct Administrator Cost 17,078

Temporary Generators Facilities Rental 

(including Maintenance and Diesel)

346,691

Vehicle Rentals, Equipment, Parts 213,829

Total 759,699

Emergency RoadRepairs Emergency Road Repairs 1,800

Total 1,800

Building and Equipment 

Damages

PRHTA Offices Damages and Repairs 1,508,049

PRHTA - Toll System Equipment Damages 

and Repairs

97,191

PRHTA- 2% Mapfre Insurance Deductible 958,687

PRHTA Vehicles Damages and Repairs 18,311

First Transit Bus Damages 16,142

Total 2,598,380

Debris, Emergency 

Protective Measures & 

Building and Equipment

Damages

Debris, Emergency Protective Measures & 

Building and Equipment Damages 67,668,704

Total 67,668,704

Total 71,212,694

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 16 of 116
Puerto Rico’s highway system suffered significant damages following Hurricane Maria. As of February 19, HTA estimated that repairs 

would cost a total of $652M. Of this total, $20M is projected to come from local funds assuming a 100% federal match for all FHWA 

expenses1 and some local spending for design management and a share of FEMA expenses. Over half of the total spend will go towards 

repairing collapsed roads, with another 26% going towards bridge repair and reconstruction.

Damage to the Highway network was estimated at $652M, with federal funding 

covering 97% of losses

New HTA Fiscal Plan 16

1 Bipartisan Budget Act of 2018, 115th Cong., 2d Sess. (2018). Page. 88; line 8.

4% 2% 1% 7% 6%

26%

54%

ER for active 

projects

Traffic signs Lighting system

and safety

Temporary 

bridges (ACROW)

Bridge 

reconstruction 

and repair

Roadway collapse Traffic signals and 

communications

Percent of budgeted repair cost by category

Total spend by federal and local funds ($ millions)

176

257

145

55

2

8

6

0

3

57

FY21 FY22

148

FY20

182

FY19

265

FY18

0 0

Local emergency repair program Federal emergency repair program

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 17 of 116
Next Steps for Hurricane Recovery

New HTA Fiscal Plan

Complete 

comprehensive 

damage assessment 

and collect information 

for emergency grants 

(FHWA, FTA, FEMA, 

CDBG-DR)

and insurance claims

(in-process)

Submit requests for 

additional grant 

funding and complete 

insurance claim 

process

Establish 

organizational 

structures required to 

properly apply grant 

funding

Deploy recovery funds 

for repair and 

recovery, and 

establish a timeline to 

normalize operations

17

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 18 of 116
III. INFRASTRUCTURE AGENDA

New HTA Fiscal Plan 18

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 19 of 116
▪ Obligate as much Federal 

Funds as possible to support 

economic growth

▪ Current federal match is 

80.25% of project costsfor 

eligible projects, with the 

state matching 19.75% 

(exception: 100% for 

emergency relief).

▪ Currently, HTA uses toll 

credits to cover thespend 

requirements of the state 

match.

▪ Transfers agreed upon in 

CW plan to fund projects 

beyond federal funds

Planned projects for thenext six 

years will mainly focuson:

▪ Highway Safety Projects

▪ Improvement of existing 

transportation infrastructure, 

including: pavement 

reconstruction and 

preservation; bridge repairs 

and preservation; and the 

upgrade of trafficsignals.

▪ Congestion Mitigation

▪ For the Transit Asset, the 

CIP will focus on the 

replacement andupgrades 

of buses and the TU train 

system

HTA Infrastructure Agenda

New HTA Fiscal Plan

1 Total available FTA & FWHA funding may not equal that of obligated funds and/or actual expenditures

HTA has established an infrastructure agenda to improve the condition and performance of its assets to improve economic growth, and maximize federal 

funds obligated from FHWA1 and FTA1 to enable it to meet its goals. Puerto Rico has a six-year Capital Improvement Plan (CIP). The six-year CIP is 

comprised of the 2017-2020 Statewide Transportation Improvement Plan (STIP) which are planned projects, active projects not included in the STIP, and 

projections beyond the STIP to maintain the system in a state of goodrepair.

▪ Focus CIP on maintaining the

existing highways asset in an

adequate operatingcondition

▪ Continue aggressive plan to 

maximize funds anddevelop 

best-in-classinfrastructure

▪ Expedite projectdelivery:

– Engage expediteddesign 

services to accelerate 

preliminary designs and 

obligate funds

– Increase project 

supervisionthrough 

additional qualified 

resources

▪ Utilize P3’s and outsourcing 

as strategies to achieve a 

more efficient and modern 

infrastructure, inaccordance 

with Puerto Rico’s 

government publicpolicies

▪ The current CIP has been developed to 

maximize the deployment of alreadyassigned federal funding on existing 

projects and optimize the use of future 

funding by prioritizing infrastructure needs 

in order to keep the roadnetwork in a safe 

operatingcondition.

▪ As part of a Memorandum of Understanding 

(MOU) between the HTA and the FHWA, 

HTA is undergoing a transformation geared 

at revamping its project and program 

delivery capabilities to eliminate its project 

backlog.HTA feels confident that it will be 

able to deliver the described CIP in this fiscal 

plan, oncethis transformation iscompleted.

▪ HTA has included in the fiscal plan aCIP for 

the Transit Assets at $5M per year, 

previously allocated on PRITA’s budget, to 

ensure availability of funds to overhaul any 

bus units and train system components in

disrepair. 

19

Strategy Focus Funds Projects and execution 

SOURCE: HTA CIP

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 20 of 116
Revenues

HTA Baseline CIP Summary

New HTA Fiscal Plan

In order to maintain its assets in a state of good repair, comply with federal requirements, and invest in critical economic development projects, HTA estimates that it

will need $3.0B of capital expenditures (not including capex optimization measures), from FY18 to FY23, of which:

▪ $2.25B is for HTA’s Highway-related Capital Improvement Plan

▪ $652M is for Hurricane Maria-related emergency repair expenditures to occur over the next four years 

▪ $146M is for HTA’s Transit-related Capital Improvement Plan

During the six-year period, HTA’s CIP expenses exceed capital revenues by $496M. This gap will need to be funded by operating revenues or allocations from Central

Government.

FY18 to FY23 CIP: Revenues and Expenses, ($ millions) 

Expenses

671

1,085

632

1,295 474

210

20

Construction 

local

Transit 

CIP

146

FHWA 

construction spend 

projects

Design Nonfederal 

construction

projects

496

Local 

Emergency 

Repair 

Program

20

632

Nonfederal 

construction soft 

costs

FHWA 

construction soft 

costs

FHWA 

Funds

122

Federal 

Emergency

Repair 

Program

ROW

65

Federal Gap

emergency

revenues

73

FTA 

Funds

State 

funds 

earmarked 

for CapEx

146

20

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 21 of 116
Prioritized Highway CIP* Baseline for Fiscal Plan Period

Main Assumptions:

Construction Assumptions:

▪ Federal and local Capital expenses for FY18-FY21 were developed using project-specific costs provided by HTA for active projects, STIP 

projects (State Transportation Improvement Program), federal projects, and projected expenditures on dynamic toll lanes. 

▪ FY22-23 estimates were developed using CIP projections ($261.8M per year) produced by HTA and its consultants, and projects the total 

spending needed per year to keep the highway network in a state of good repair.

Soft-Cost Assumptions:

▪ Includes $65 M in soft cost backlog. Assumes 10% of Capital expenses for 2018 and 2019, 15% for 2020 and 2021, and 18.5% of Capital 

expenses for Years 2022 to 2023. Soft cost assumptions by year were provided by HTA and its engineering consultants.

HTA has prioritized its CIP around four main objectives, 1) eliminate its federal backlog in the next 4 years, 2) maintain the national highway

system (NHS) and interstate system in a state of good repair compliant with federal standards, 3) make critical investments in strategic

projects to reduce congestion and drive economic growth, and 4) provide minimal intervention state of good repair spend to the non-NHS

roads.

21

[1] Some of FY21's total construction spend was also developed with inputs from the CIP

* Includes both construction and soft costs but does NOT include CIP for Transit Asset

231

395

306 300 300 297

77

73

74 64 63 66

FY19 FY20

380

308

FY23

468

FY18

363

FY21 FY22

364 363

Soft cost Construction cost

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 22 of 116
Highways Asset Baseline CIP* by Type of Work

[1] HTA developed a long-term, steady-state CIP for its highway infrastructure it believes it needs to keep the highway system in a state of good repair and critical to HTA receiving full

federal funds. To develop these funding levels, HTA used available data on asset condition, lifecycle, and historical costs. Following its initial analysis, HTA hired an outside engineering

consultant to conduct a validation the CIP. After integrating the results of the external study, PRHTA estimates a steady-state CIP of $261.8M per year.

HTA’s estimated steady state 

CIP is $261.8M in hard costs 

per year [1]

22

Steady State Expenses By Type of Work ($ in millions)

* Includes both construction and soft costs and does NOT include CIP for Transit Asset

130

86

33

13

Bridges

Safety

Pavement

Traffic signalling

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 23 of 116
HTA has developed its Highways CIP with the goal of maintaining the highway network in a state of good repair at an expected cost of 

$2,245 M. HTA has identified $1,769M over the six-year period in capital funding. In order to implement its non-Emergency Repair CIP, 

$476M in additional funding will be required from operations, fiscal measures, or appropriations from the Central Government. 

Highways Asset Baseline CIP* for Fiscal Plan Period by Sources of Funds

*Includes both construction and soft costs and does NOT include CIP for Transit Asset

** Allocation for the PRHTA for infrastructure improvements from the FY 2018 Central Govt Budget 

133

402

314

169 139 139

159

66

66

77

53 54

118

171 170

363

FY22 FY23

363

FY19 FY21

380

468

364

FY18 FY20

308

16

Additional funding required State funds earmarked for capex FHWA funds

FY19-FY20 have a surplus of ~$18 M. These 

funds have been rolled over into FY21

Highways CIP by Funding Source ($ millions) 

New HTA Fiscal Plan 23

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 24 of 116
Transit Estimated CIP* for Fiscal Plan Period

*Includes both construction and soft costs

Main Assumptions:

Transit CIP – Overhaul of Bus and Train System Units, as needed.

Transit Capital Revenues ($ millions)

24

1 Note that the annual $5 million is currently allocated for CapEx on PRITA’s budget.

Transit capital expenses1($ millions) 

2 6 5 5 5

4 5 4 5

FY19 FY20 FY21 FY22 FY23

50

5

50

5

FY18

31

5

Insurance Capital improvement allocation FTA grant

5 5 5

3 1

2 0

1 0

3 0 4 0

FY18 FY19 FY20 FY21

50

FY22 FY23

50

TU repairs and reconstruction Transit improvements

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 25 of 116
Extension of PR-22 from 

Hatillo to Camuy

PR-5 Extension Toa Alta- Bayamón

Dynamic Toll Viaducts –

Efficient Peak Period Traffic 

Reduction in Critical Intersections

Infrastructure Agenda: Strategic Projects and P3 

25

▪ These priority projects are aligned with HTA’s strategic goals to promote economic development and reducecongestion.

▪ The Projects emphasize include of existing toll roads, and dynamic toll lanes/flyovers which would include new revenue to

enhance private sector participation through Participative P3’s.

▪ HTA is currently exploring executing these projects under a P3 model. Preliminary studies suggest that gap funding will be 

required for these projects. Further study will be needed to determinewhich project will be pursued, but HTA will prioritize

the project with the highest socioeconomic benefit to Puerto Rico.

▪ As part of this process, HTA will work to identify additional funding will allow HTA to provide adequate gap financing and 

facilitate the development of P3’s

▪ Currently, funding for dynamic toll viaducts is included in HTA’s fiscal plan. However, HTA will continue to explore using a P3 

model on this project to make the best use of available funds.

1

2

3

$200 MM

$170 MM

$249 MM – based on initial engineering 

estimates

$5 MM / year

$8 MM / year

$1 MM / year

Project Cost Project revenue

Note: Numbers revised as per Northwestern Corridor: Desirability and Convenience Final Report, April 2016. 

Source: STIP 2017-2020; HTA Management Assessment

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 26 of 116
IV. CURRENT SITUATION WITH BASELINE FINANCIAL 

PROJECTION

New HTA Fiscal Plan 26

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 27 of 116
HTA’s projected fiscal situation without fiscal measures: Summary

New HTA Fiscal Plan

HTA’s total financial gap over the six years, without considering fiscal plan measures or central

government transfers, is $1.039B

Total financial gap without fiscal measures, FY18-FY23 in $millions

474

(1,039)

(2,863)

2,656

740

(3,629)

(767)

(1,191)

1,126

1,441

Premeasures 

gap

Operating 

revenues

(excluding 

clawback)

Capital 

expenses

Operating 

Expenses

Other 

funding

Federal funding Fiscal Gap

Direct impact of Maria CW capex funding

27

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 28 of 116
HTA’s projected fiscal situation without considering fiscal measures: Detail

▪ Gasoline Tax

▪ Diesel Tax

▪ Petroleum Products Tax

▪ Cigarettes taxes

▪ Motor Vehicle License Fees

▪ Act 30 - Licenses Fees Transferred to Act

▪ Transit Revenues

▪ Electronic Toll Fines

▪ Other income

Operating Revenue1

▪ FHWA Funds2

▪ State Funds Earmarked for CapEx2

▪ Federal Emergency Revenues2

▪ FTA Funds2

▪ Hurricane Loss Assessment - Insurance and FEMA Revenue

Capital Contribution

Total Revenues After Federal Fund Transfers

▪ Right of Way2

▪ Design2

▪ Construction Local2

▪ Salaries and related benefits3

▪ PayGo Retirement Impact3

▪ Litigation Reserve3

▪ Right of Way Payments3

▪ Other program expenses3

▪ FHWA Construction Spend Projects2

▪ Non-Federal Construction Projects2

▪ FHWA Construction Soft Costs2

▪ Non-Federal Construction Soft Costs2

▪ Federal Emergency Repair Program2

▪ Local Emergency Repair Program2

▪ Transit CIP2

▪ Hurricane Loss Assessment - Local Funding Needs

▪ Hurricane Loss Assessment - Insurance / FEMA Covered

Total Construction

▪ Salaries and related benefits3

▪ PayGo Retirement Impact3

▪ Toll highways administration and maintenance3

▪ Train operating and maintenance costs3

▪ Integrated transportation system3

▪ Other operating expenses3

Total operating expenses

Total expenses

Total Fin. Gap Pre-Measures before Rev Retention & Gov. Funding

Retained Revenues to Central Government

Total Fin. Gap Pre-Measures post-Rev Retention & pre-Gov. Funding

131,242 

12,500 

290,748 

19,992 

26,701 

49,066 

28,909 

27,177 

4,618 

708,074 

132,766 

159,000 

175,553 

31,000 

27,002 

525,320 

1,233,394 

(3,300)

(23,000)

(23,160)

(46,807)

(13,536)

(6,465)

(16,626)

(1,471)

(96,242)

(111,750)

(36,524)

(14,153)

(175,553)

(6,496)

(31,000)

(1,552)

(27,002)

(634,637)

(39,988)

(4,423)

(37,189)

(63,527)

(14,603)

(33,398)

(193,128)

(827,765)

405,629 

(530,248)

(124,619)

137,993 

12,500 

290,748 

19,992 

27,711 

50,923 

29,308 

25,265 

5,487 

723,072 

401,926 

82,073 

256,565 

50,000 

54,004 

844,568 

1,567,640 

(3,300)

(7,769)

(10,000)

(46,970)

(14,489)

(8,516)

(13,736)

(1,471)

(347,242)

(38,222)

(54,684)

(6,800)

(256,565)

(7,780)

(50,000)

(3,104)

(54,004)

(924,654)

(40,563)

(4,734)

(46,798)

(65,402)

(14,959)

(35,476)

(207,932)

(1,132,586)

435,054 

(539,866)

(104,812)

140,106 

12,500 

290,748 

19,992 

27,855 

51,187 

29,617 

26,103 

5,670 

728,809 

313,922 

67,334 

145,201 

50,000 

27,002 

603,458 

1,332,267 

(3,300)

(10,716)

(10,000)

(46,732)

(14,489)

(9,809)

(7,068)

(1,471)

(260,540)

(35,033)

(53,382)

(6,481)

(145,201)

(3,240)

(50,000)

(1,552)

(27,002)

(686,016)

(40,394)

(4,734)

(38,818)

(65,106)

(15,324)

(32,535)

(196,910)

(882,927)

449,340 

(542,388)

(93,047)

142,805 

12,500 

290,748 

19,992 

28,014 

51,480 

29,829 

26,679 

5,795 

735,282 

168,768 

59,067 

55,135 

5,000 

-

287,971 

1,023,253 

(3,300)

(7,882)

(10,000)

(46,522)

(14,489)

(10,722)

(1,900)

(1,471)

(143,610)

(146,122)

(25,158)

(27,644)

(55,135)

(2,484)

(5,000)

-

-

(501,440)

(40,244)

(4,734)

(39,744)

(67,148)

(15,697)

(30,535)

(198,102)

(699,542)

323,710 

(545,538)

(221,828)

145,883 

12,500 

290,748 

19,992 

28,276 

51,960 

29,965 

27,048 

5,875 

742,432 

138,830 

53,020 

-

5,000 

-

196,850 

939,283 

(3,300)

(7,882)

(10,000)

(46,299)

(14,489)

(11,442)

-

(1,471)

(120,009)

(169,687)

(18,821)

(33,242)

-

-

(5,000)

-

-

(441,643)

(40,085)

(4,734)

(40,606)

(66,820)

(16,080)

(28,635)

(196,961)

(638,603)

300,679 

(549,358)

(248,679)

148,589 

12,500 

290,748 

19,992 

28,472 

52,321 

30,024 

27,208 

5,910 

748,365 

138,830 

53,761 

-

5,000 

-

197,591 

945,956 

(3,300)

(7,882)

(10,000)

(46,146)

(14,489)

(11,004)

-

(1,471)

(117,156)

(169,687)

(21,674)

(33,242)

-

-

(5,000)

-

-

(441,052)

(39,975)

(4,734)

(41,230)

(69,250)

(16,472)

(26,588)

(198,250)

(639,302)

306,654 

(552,621)

(245,967)

$ thousands 2017-18 P 2018-19 P 2019-20 P 2020-21 P 2021-22 P 2022-23 P 6 Yr Total: FY18-FY23

846,616 

75,000 

1,744,485 

119,952 

167,029 

306,938 

177,651 

159,481 

33,354 

4,386,034 

1,295,042 

474,256 

632,454 

146,000 

108,007 

2,655,759 

7,041,792 

(19,800)

(65,132)

(73,160)

(279,475)

(85,982)

(57,957)

(39,330)

(8,828)

(1,084,799)

(670,502)

(210,243)

(121,563)

(632,454)

(20,000)

(146,000)

(6,209)

(108,007)

(3,629,442)

(241,250)

(28,094)

(244,386)

(397,254)

(93,134)

(187,165)

(1,191,283)

(4,820,725)

2,221,067 

(3,260,019)

(1,038,952)

▪ Toll fares 117,121 123,146 125,032 127,441 130,187 132,602 755,528 

1 See revenue snapshot for details, 2 See CIP snapshot for details, 3 See operating expenses snapshot for details

New HTA Fiscal Plan 28

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 29 of 116
HTA’s projected fiscal position, pre-measures: Revenue snapshot

New HTA Fiscal Plan

A. Toll revenues were estimated using FY17 actual toll revenues and then increased / decreased each year based on the Commonwwealth’s Real GNP projections as of February 2018. Toll fares consists of revenues derived from (i) Toll fares, (ii) Toll optimization, (iii) Viaduct and 

Dynamic Tolling Lane revenues.

B. FY18 projected based on annualized Tren Urbano and Metro Bus actuals. FY19 isthe average of FY17 and FY18; FY20 onward uses Real GNP projections as of April 2018. Includes FTAfunding.

C. FY18 is the average between annualized FY18 YTD December and FY17 actuals. FY19 is the average of FY17 and FY8; FY20 onward uses Commonwealth's Real GNP projections as of Apr 2018

D. FY18 projected based on annualized actuals. FY19 is the average of FY17 and FY18; FY20 onward uses Commonwealth's Real GNP projections as of April 2018

E. FY18 based on FY17 projected forward using Puerto Rico real GNP. FY19 onwards grown at the Puerto Rico real GNP growth rate.

F. FY18 applies a 10% year-over-year increase to monthly petroleum tax collections (volume-based) from FY17 for 2H FY18; AFI * HTA distributions of these revenues split based on FY17 amounts. FY19 onwards projected to remain consistent with FY18 revenue

G. FY18 forecast based on run-rate, excluding non-recurring revenues from extraordinary promotions; year-over-year growth in cigarette mainly driven by increase in tobacco taxes in May 2017 (Act 26-2017). FY19 onwards grown at PR population and inflation

H. Considers FY17 actuals as a baseline for projections grown in line with PR population growth rate.

Revenue $millions

FY18 FY19 FY20 FY21 FY22 FY23

FY18-FY23 

Total

Toll Revenue 117,121 123,146 125,032 127,441 130,187 132,602 755,528 [A]

Transit Revenue 28,909 29,308 29,617 29,829 29,965 30,024 177,651 [B]

Toll Fines 27,177 25,265 26,103 26,679 27,048 27,208 159,481 [C]

Other Income 4,618 5,487 5,670 5,795 5,875 5,910 33,354 [D]

Operating Revenue 177,826 183,206 186,421 189,744 193,075 195,744 1,126,014

Gasoline Tax 131,242 137,993 140,106 142,805 145,883 148,589 846,616 [E]

Diesel Tax 12,500 12,500 12,500 12,500 12,500 12,500 75,000 [E]

Petroleum Products Tax 290,748 290,748 290,748 290,748 290,748 290,748 1,744,485 [F]

Cigarettes taxes 19,992 19,992 19,992 19,992 19,992 19,992 119,952 [G]

Motor Vehicle License Fees 26,701 27,711 27,855 28,014 28,276 28,472 167,029 [H]

Act 30 - Licenses Fees Transferred to Act 49,066 50,923 51,187 51,480 51,960 52,321 306,938 [H]

Tax and Fee Revenue 530,248 539,866 542,388 545,538 549,358 552,621 3,260,019

Total Revenue 708,074 723,072 728,809 735,282 742,432 748,365 4,386,034

HTAprojectstotalrevenue overthe six years of $4.4B, including operating revenue of $1.1B and tax and fee ‘retained’ revenue of $3.3B. This ‘retained’ revenue is 

clawed back by the CW, and passes through HTA’s balance sheet

29

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 30 of 116
Key Base Case Scenario Assumptions – Operating Revenue

▪ Operating Revenue

– Toll revenues were estimated using FY17 actual toll revenues and then increased / decreased each year based 

on the Commonwealth’s Real GNP projections as of February 2018.

▪ The baseline does not include any plan to increase toll rates, (shown separately as a fiscal measure)

– Toll Fine Revenue is based on toll operations-related violations, which include a $15 fine plus the cost of the 

unpaid toll transactions. FY18 was estimated at ~$27million based on the average of the FY17 actuals and 

annualized FY18 YTD data (to account for post - Maria impact as well as expected return to steady state). For FY19 

through FY23, this line item varies with Commonwealth’s Real GNP assumptions as of March 2018. These 

projections assume that HTA will receive both payments made to it directly as well as through Hacienda / 

Treasury, and that these pass-through receipts from Hacienda are not deducted from the central government’s 

transfer to HTA.

– Transit Revenues are composed of Tren Urbano and Metrobus income and are estimated at ~$8million for FY18 

based on the average of FY17 actuals and annualized FY18 YTD data. For FY19 through FY23, this line item 

varies with Commonwealth’s Real GNP assumptions as of March 2018. In addition, transit revenues includes FTA

funding at ~$20million/year.

– Other Income for FY18 is estimated at $4.6million, of which over 80% consists of income from rent and lease,

Import Levy Tax fees and income improvements. For FY19 through FY23, this line item varies with

Commonwealth’s Real GNP assumptions as of March 2018.

New HTA Fiscal Plan 30

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 31 of 116
HTA’s projected fiscal position, pre-measures: CIP snapshot

New HTA Fiscal Plan

Capital Expenses

$millions FY18 FY19 FY20 FY21 FY22 FY23

FY18-FY23 

Total

A. PRHTA receives $138.8M (net of penalties) in federal funds per year. FY18-21 is based on obligated Federal Funds and exceeds 138.8 M in some years as a result of backlogged projects. FY22 onwards assumes PRHTA receives its historical allocation from FHWAof $138.8M.

B. PRHTA reiceves an annual appropriation from the Commonw ealth for capitalexpenses.

C. Assumed that FHWA match of emergency repair spending was 100% per the Bipartisan Budget Act of 2018, 115th Cong., 2d Sess.(2018). Page. 88; line 8.

D. Provided by PRHTA leadership.

E. Earmarked funding for annual local constructionneeds.

F. Earmarked funding for annual design needs.

G. Federal and local construction costs for FY18-21 were developed using project specific costs provided by PRHTA for active projects, STIP projects, Federal earmark projects, and projected spend on dynamic toll lanes. FY22-27 were developed using long-term CIP projections produced by PRHTA 

and its consultants and projects the totalspend needed by year to keep the highway network in a state of good repair.

H. Includes $65M in soft cost backlog. Assumes 10% of construction costs for 2018 and 2019, 15% for 2020 and 2021, and 18.5% of construction costs for Years 2022 to 2027. Soft cost assumptions by year were provided by PRHTA and its engineering consultants.

I. Developed using current damage estimates prepared as of February 19th, 2018. Local emergency repair costs include the local share of FEMA emergency repair and $12M for local design management not eligible for FHWA reimbursement.

J. Provided by PRHTA leadership.

FHWA Funds 133 402 314 169 139 139 [A]

State Funds Earmarked for CapEx 159 82 67 59 53 54 [B]

Federal Emergency Revenues 176 257 145 55 - - [C]

FTA Funds 31 50 50 5 5 5 [D]

Total Revenues 498 791 576 288 197 198 

Construction Local (23) (10) (10) (10) (10) (10) [E]

Design (23) (8) (11) (8) (8) (8) [F]

ROW (3) (3) (3) (3) (3) (3)

FHWA Construction Spend Projects (96) (347) (261) (144) (120) (117) [G]

Non-Federal Construction Projects (112) (38) (35) (146) (170) (170)

FHWA Construction Soft Costs (37) (55) (53) (25) (19) (22) [H]

Non-Federal Construction Soft Costs (14) (7) (6) (28) (33) (33)

Federal Emergency Repair Program (176) (257) (145) (55) - - [I]

Local Emergency Repair Program (6) (8) (3) (2) - -

Transit CIP (31) (50) (50) (5) (5) (5) [J]

Total Expenses (521) (782) (578) (426) (368) (368)

Net Capital Expenses (23) 8 (1) (138) (171) (170)

1,295 

474 

632 

146 

2,548 

(73)

(65)

(20)

(1,085)

(671)

(210)

(122)

(632)

(20)

(146)

(3,044)

(496)

Total CIP expenses are $3billion and total revenues are $2.5 billion over the six-year period.

31

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 32 of 116
▪ Capital expenses

– Federal and local Capital expenses for FY18-21 were developed using project specific costs provided by PRHTA for active projects, 

STIP projects, Federal earmark projects, and additional locally funded projects.

▪ A previously budgeted $23M was allocated to the Construction Local line item.

– FY21-23 Capital expenses were developed using long-term CIP projections produced by PRHTA and its consultants and validated by an 

external engineering firm and projects the total spend needed by year to keep the highway network in a state of good repair.

▪ FY21 is the first year where long-term CIP costs are incurred. Per PRHTA consultants, only 20% of steady-state FHWA longterm CIP costs can be incurred in the first year due to additional standard delay in obligating federal funds. The remaining 

portion of costs in this year are contributed from STIP-programmed and current active projects.

▪ $10M per year of the FY22+ non-federalspend has been allocated to the local construction line item as an earmark for annual 

needs.

– All years incorporate additional costs based on the long-term CIP projections to achieve adequate levels of state of good repair 

spending.

▪ Soft Costs

– Includes $65M in soft cost backlog. Assumes 10% of Capital expenses for 2018 and 2019, 15% for 2020 and 2021, and 18.5% of

Capital expenses for Years 2022 to 2023. Soft cost assumptions by year were provided by PRHTA and its engineering consultants

▪ A previously budgeted $23M was allocated to the Construction Local line item.

▪ For FY19 onwards, $5M was deducted per year from the total soft cost and allocated to the design line item to ensure funding

for annualneeds.

Key Base Case Scenario Assumptions – CIP (1 of 2)

New HTA Fiscal Plan 32

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 33 of 116
▪ Funding

– PRHTA receives $138.8M (net of penalties) in federal funds per year. Total FHWA funds for FY18-21 is based on 

obligated Federal Funds and exceeds 138.8 M in some years as a result of backlogged projects. FY22 onwards

assumes PRHTA receives its historical allocation from FHWA of $138.8M.

– PRHTA had previously received a capex allocation from central government of $75M which is currently allocated for 

FY18. PRHTA is also set to receive additional Capex funds of $399M. This amount will fund emergency 

reconstruction as well as allow HTA to meet its capital requirementsto maintain a state of good repair and fund

additional strategic projects.

▪ Emergency Repair

– Assumed that FHWA match of emergency repair spending was 100% per the Bipartisan Budget Act of 2018, 115th

Cong., 2d Sess.

(2018). Page. 88; line 8.

– Developed using current damage estimates prepared as of February 19th, 2018. Local emergency repair costs

include the local share of FEMA emergency repair and 12 M forlocal design management not eligible for FHWA

reimbursement

▪ Transit CIP

– Developed on a line item basis by CIP leadership. Includes costs and revenues associated with reconstruction 

and repair following Hurricane Maria.

– Of the $20million received from the FTA each year, $5million has been allocated to the transit CIP in FY21 

onwards whereas the remaining $15million has been allocated to subsidize transit operating expenses. \

Key Base Case Scenario Assumptions – CIP (2 of 2)

New HTA Fiscal Plan 33

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 34 of 116
HTA’s projected fiscal position, pre-measures: Operating Expenses snapshot

New HTA Fiscal Plan

A. Salary: # of FY18 employees times their average salary. Assume salaries remain flat over period; Benefits: FY18: based on average of annualized FY18 YTD acuals through Dec 2017 and FY18 budget and is assumed to grow at 0.5% per year (FY16-FY18 CAGR). Other FY18 

benefits based on share of salary and assumed flat over period. Law 70 and 211: Early Retirement based on by-person schedules

B. FY18: based on Department of Treasury's invoice; Assumed Milliman's actuarial estimates projected at $36M / year as of FY19

C. Considers FY17 actuals as baseline and splits it into construction (93%) & non construction (7%). The construction component varies according to capital expenditure growth.

D. Based on a specific payment schedule for active cases - trails off as no expected new construction in near-term to drive ROW

E. FY18 vehicle lease and plotters: based on expected payments ($585K) this fiscal year; all other (rent, secuirty and others): assumed flat w ith FY17 actuals

F. Salary: # of FY18 employees times their average salary. Assume salaries remain flat over period; Benefits: FY18: based on average of annualized FY18 YTD acuals through Dec 2017 and FY18 budget and is assumed to grow at 0.5% per year (FY16-FY18 CAGR). Other FY18 

benefits based on share of salary and assumed flat over period. Law 70 and 211: Early Retirement based on by-person schedules

G. FY18: based on Department of Treasury's invoice; no additional information available, assumed flat duringperiod

H. FY18 Toll Operator (GILA) estimates based on the 12 months pre-Hurricane (Sep 2016 to Aug 2017); split 40% fixed and 60% variable - variable based on expected traffic volume. Both costs escalated at 2% / year. Vehicles and maintenance based on expected traffic; insurance 

based on specific post-Hurricane Maria estimates (if not other hurricanes, insurance w ill regress to pre-Maria levels starting in FY23); all other variables constant w ith FY17 actuals

I. Tren Urbano operating contract ($53mm in FY18) based on contract requirements and projected hour and mile rates (about 1% increase per year); insurance based on specific post-Hurricane Maria estimates; all other variables (lighting, etc.) 

assumed constant with FY17actuals

J. Bus operating estimates based on recent contract trends (2.4% per year) extended for all years of period

K. Professional Services, which includes FOMB consulting providers (represents 79% of all providers) is expected to decrease during the period. All other variables (rent, lighting, etc.) assumed constant w ith FY17 actuals

Operating Expenses

$millions FY18 FY19 FY20 FY21 FY22 FY23

FY18-FY23 

Total

Salaries and related benefits [A]

PayGo Retirement Impact [B]

Litigation Reserve [C]

Right of Way Payments [D]

Other program expenses [E]

Subtotal, Construction Support

Salaries and related benefits [F]

PayGo Retirement Impact [G]

Toll highways administration and maint. [H]

Train operating and maintenance costs [I]

Integrated transportation system [J]

Other operating expenses [K]

Subtotal, Operating Expenses

Total

(46.8)

(13.5)

(6.5)

(16.6)

(1.5)

(84.9)

(40.0)

(4.4)

(37.2)

(63.5)

(14.6)

(33.4)

(193.1)

(278.0)

(47.0)

(14.5)

(8.5)

(13.7)

(1.5)

(85.2)

(40.6)

(4.7)

(46.8)

(65.4)

(15.0)

(35.5)

(207.9)

(293.1)

(46.7)

(14.5)

(9.8)

(7.1)

(1.5)

(79.6)

(40.4)

(4.7)

(38.8)

(65.1)

(15.3)

(32.5)

(196.9)

(276.5)

(46.5)

(14.5)

(10.7)

(1.9)

(1.5)

(75.1)

(40.2)

(4.7)

(39.7)

(67.1)

(15.7)

(30.5)

(198.1)

(273.2)

(46.3)

(14.5)

(11.4)

-

(1.5)

(73.7)

(40.1)

(4.7)

(40.6)

(66.8)

(16.1)

(28.6)

(197.0)

(270.7)

(46.1)

(14.5)

(11.0)

-

(1.5)

(73.1)

(40.0)

(4.7)

(41.2)

(69.3)

(16.5)

(26.6)

(198.3)

(271.4)

(279.5)

(86.0)

(58.0)

(39.3)

(8.8)

(471.6)

(241.2)

(28.1)

(244.4)

(397.3)

(93.1)

(187.2)

(1,191.3)

(1,662.9)

Total FY18 budgeted Opex is $1.7billion over six years, with almost 40 percent of the expected costs from personnel (salary/benefits, including 

PayGo retirement)

34

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 35 of 116
Key Base Case Scenario Assumptions – Operational Expenses (1 of 3)

New HTA Fiscal Plan

▪ Salaries and related benefits

– Salaries and related benefits consider the latest HTA roster, and each employee’s costs at the average current salary. Additional 

benefits such as overtime, pension, social security and Medicare are calculated as a proportion of the base salary. HTA has not 

increased salaries in the last nine years, so we assumed no increase over this period. HTA is self-insured, and over the last two years 

has experienced a 0.5% CAGR in health care costs, which we assumed will extend for the remaining fiscal years.

– Law 70 Early Retirement Program went into effect prior to HTA’s fiscal plan period, and its costs are based on the known payout 

schedule for the program’s participants. As expected, the program costs trails off as participants age and are removed from the 

program. For this reason, Law 70 impact is included in the baseline.

– Law 211 Early Retirement Program went into effect at the beginning of FY18, and our baseline considers participants at their thencurrent costs at the time of their 6/30/17 separation (note:savings from this Law is captured and represented as a fiscal measure).

▪ PayGo Retirement

– HTA received an invoice from the Puerto Rico Treasury Department for $34million related to FY18, the first year when PayGo went 

into effect. For forecasts from FY19 through FY23, HTA used Milliman’s PayGo-related actuarial estimates projected at $36million per 

year.

▪ Litigation Reserve

– HTA considered litigation case-by-case breakdown for FY17 and split between construction and non-construction. Non-construction 

component(7%) assumed constant while construction component(93%) reflects variation in capital expenditure.

▪ Right of Way Payments

– HTA built a by-case projection based on specific litigation cases and their expected payments. These expenses are expected to

gradually decrease until reaching zero by FY22, as HTA’s new construction activity reduces.

35

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 36 of 116
Key Base Case Scenario Assumptions – Operational Expenses (2 of 3)

New HTA Fiscal Plan

▪ Other program expenses

– Consists of additional expense related to construction support. Equipment rental is the largest item within this category and is due

primarily to car leases to support transportation within construction sites. This item is expected to increase to support increased

construction activity in the next few years. Other remaining expenses such as building rent and security considers FY17 actuals and is

expected to remain flat.

▪ Toll highways administration and maintenance

– Electronic toll collection, the cost of HTA’s toll operator third-party service provider, has been split into variable (costs driven by traffic

volume) and fixed (fixed costs). To get a good steady state estimate, FY18 considers the last twelve months prior to Hurricane Maria Sep

2017 to Aug 2018); forfuture years, this line item varies based on real GNP plus a small per year contractor cost escalation.

– Highway Repair and maintenance, which supports HTA’s highways, consists of several components (e.g. green area contracts; repavement) that total $10million per year for FY18 and FY19. As of FY20 this line item includes a small per year contractor cost

escalation.

– Vehicle maintenance and repair, which supports HTA’s highway operations, assumes FY18 is consistent with FY17, and future years

include small per year contractor costescalation.

– Insurance and maintenance, for HTA’s highways operations, considers actual insurance policy costs for years FY18 and FY19. Insurance

costs are estimated to remain steady until FY22 and then gradually decline back to FY18 levels (assuming no Maria-like events will

recur).

– All other line items such as lighting, security, rent, etc. use FY17 actuals for projectionsfor each year through FY23.

▪ Train operating and maintenance costs

– Tren Urbano’s operating contract represents approx. 80% of this line item. Between FY18 and FY23, projections have been made on a

detailed, per-year estimate consisting of the FY18 to FY23 contracted base compensation, price / mile, price per hour, estimated miles,

estimated hours and an annual allowance in order to reach the total expected contract costs. CAGR is approx. 1% over the six years.

– Insurance and maintenance, for Tren Urbano operations, considers a actual insurance policies for years FY18 and FY19. Insurance costs

are estimated to remain steady until FY22 and then gradually decline back to FY18 levels.

– All other line items such as lighting, security, rent, etc. use FY17 actuals for projectionsfor each year through FY23.

36

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 37 of 116
Key Base Case Scenario Assumptions – Operational Expenses (3 of 3)

New HTA Fiscal Plan

▪ Integrated transportation system

– The bus system that flows into Tren Urbano is operated by a third-party provider and the budgetinformation is based off on the 

existing operating contract. Based on the contract pricing, a CAGR of approximately 2% is expected through FY23.

▪ Other operating expenses

– Professional services represent approximately 80% of this line item. Professional services includes FOMB support, which is almost 

80% of this subtotal. In addition, services includes Title III consulting, accounting, law and financial services consulting. Professional 

services is expected to gradually decline over the years from approximately $26million in FY18 to approximately $18million in FY23, 

mostly related to a decline in FOMB services and Title IIIsupport.

– Insurance and maintenance regarding operating and overhead, considers actual insurance policies for years FY18 and FY19.

Insurance costs are estimated to remain steady until FY22 and then gradually decline back to FY18 levels.

– All other line items such as lighting,security, rent, etc. use FY17 actuals for projectionsfor each year through FY23.

37

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 38 of 116
IV. FISCAL MEASURES WITH FINANCIAL PROJECTIONS

New HTA Fiscal Plan 38

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 39 of 116
HTA’s projected fiscal situation with fiscal measures: Summary

New HTA Fiscal Plan

After retained revenues, Central Government transfers, and fiscal plan measures, HTA’s pre-debt fiscal 

surplus is $369M from FY18-FY23

Total financial gap with fiscal measures, FY18-FY23 in $millions

(3,629)

413

(1,191)

1,126

(767)

369

(1,039)

(2,863)

2,656

1,441

995 1

474 1

740

Pre-Debt

Total 

Transfer 

from PR 

Gov’t

Fiscal 

measures

Operating 

revenues

(excluding 

clawback)

Capital 

expenses

Operating 

Expenses

PostTransfer

Other funding

Federal funding Fiscal surplus / gap

Direct impact of Maria CW funding

1 Since July FP, increase of $399M in ‘Other funding’ capex from the central government (originally $75M) and increase of $279M in PR govt transfer (originally $716M)

39

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 40 of 116
Fiscal Plan Measures - Summary

Enhance 

org

Increase 

revenue

Optimize 

expenses

-5

13

57

11

52

-3

14

77

27

39

116

413

0

14

4

3

7

10

8

2

1

11

6

12

5

9

8.7 

6.5 

9.4 

12.9 

1.8 

4.5 

19.3 

2.2 

2.4 

2.4 

68.8 123.2 

22.5 

14.9 

26.3 

7.2 

14.6 

- -

(0.4) (0.5)

19.5 

3.1 

5.6 

3.6 

6.3 

Fiscal impact $M

Increase rates on existing roads only with a tiered CPI catch up

Secure share of discretionary federal and recovery grants to offset CIP and strategic project 

expenditures

Workforce transition to reduce total labor expense (payroll, benefits, and outsourcing) in line 

with Commonwealth wide efficient objective

Create BRT route from Caguas – Centro Medico, servicing ~1K people daily, build 7 viaducts and 1 

tunnel, and implement DTLsto reduce congestion

Improve toll capture through ORTs

Increase transparency around customer welfare, financial discipline and operational 

execution through performance measurement and tracking

Secure better rates for contracts

Evaluate concession opportunity for PR-52 and other roads

Improved prioritization based on outcomes and project delivery to complete capital portfolio 

with a more efficient resource envelope

Executed retirement incentivization for 162 personnel and an early termination incentive 

program for 14 more

Increase revenue from non-toll, non-transfer sources including but not limited to 

advertisement revenues, real estate dispositions and service signs

Total

Establish an independent board of administration leaders and independent industry experts

Description

Average/

year

Final year 

Fiscal measure 6 years (FY18-23) (FY23)

Increase tolls on 

existing roads

Increase 

discretionary funds

Traffic reduction

Toll optimization

Rollout 

organizational KPIs

Contract re-bid

Concessions

Rightsizing

Early exits

Capture ancillary 

revenue

Enhance board 

composition

Optimize CIP

New HTA Fiscal Plan 40

(0.8) -

Pensions Reduce pension contributions by 10% in line with Commonwealth wide target

13

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 41 of 116
HTA’s projected fiscal situation with fiscal measures: Detail

Toll fares, includes [3] and [5] 851,254 

Gasoline Tax

Diesel Tax

Petroleum Products Tax

Cigarettes taxes

Motor Vehicle License Fees

Act 30 - Licenses Fees Transferred to Act

Transit Revenues, includes [12]

Electronic Toll Fines, includes [5]

Other income, includes [6]

Operating Revenue

FHWA Funds, includes [4]

State Funds Earmarked for CapEx

Federal Emergency Revenues

FTA Funds

Hurricane Loss Assessment - Insurance and FEMA Revenue

Capital Contribution

Total Revenues After Federal Fund Transfers

Right of Way

Design

Construction Local

Salaries and related benefits, includes [8], [9] and [11]

PayGo Retirement Impact, includes [9]

Litigation Reserve

Right of Way Payments

Other program expenses, includes [8]

FHWA Construction Spend Projects, includes [7]

Non-Federal Construction Projects, includes [7]

FHWA Construction Soft Costs, includes [7]

Non-Federal Construction Soft Costs, includes [7]

Federal Emergency Repair Program

Local Emergency Repair Program

Transit CIP

Hurricane Loss Assessment - Local Funding Needs

Hurricane Loss Assessment - Insurance / FEMA Covered

Total Construction

Salaries and related benefits, includes [8], [9] and [11]

PayGo Retirement Impact, includes [9]

Toll highways administration and maintenance, includes [5] and [13]

Train operating and maintenance costs, includes [10]

Integrated transportation system, includes [10] and [12]

Other operating expenses, includes [1] and [8]

Total operating expenses

Total expenses

Total Fin. Gap Post-Measures before Rev Retention & Gov. Funding

Retained Revenues to Central Government

Total Fin. Gap Post-Measures post-Rev Retention & pre-Gov. Funding

Operating Surplus / Deficit

Total Fin. Gap Post-Measures after Rev Retention & Gov. Funding

In $ thousands 2017-18 P 2018-19 P 2019-20 P 2020-21 P 2021-22 P 2022-23 P 6 Yr Total: FY18-FY23

120,621 

131,242 

12,500 

290,748 

19,992 

26,701 

49,066 

28,909 

27,177 

4,618 

711,574 

132,766 

159,000 

175,553 

31,000 

27,002 

525,320 

1,236,894 

(3,300)

(23,000)

(23,160)

(46,178)

(13,536)

(6,465)

(16,626)

(1,471)

(95,767)

(111,750)

(36,260)

(14,153)

(175,553)

(6,496)

(31,000)

(1,552)

(27,002)

(633,270)

(39,543)

(4,423)

(35,278)

(63,527)

(14,603)

(33,398)

(190,771)

(824,041)

412,854

(530,248)

(117,394)

138,100 

20,706 

131,898 

137,993 

12,500 

290,748 

19,992 

27,711 

50,923 

29,308 

18,948 

6,265 

726,286 

405,596 

82,073 

256,565 

50,000 

54,004 

848,238 

1,574,524 

(3,300)

(7,769)

(9,146)

(45,683)

(14,489)

(8,516)

(13,736)

(2,809)

(340,801)

(30,840)

(51,316)

(6,800)

(256,565)

(7,780)

(50,000)

(3,104)

(54,004)

(906,658)

(39,774)

(4,734)

(41,849)

(65,402)

(11,538)

(37,125)

(200,422)

(1,107,080)

467,443 

(539,866)

(72,423)

97,300 

24,877 

140,633 

140,106 

12,500 

290,748 

19,992 

27,855 

51,187 

29,617 

19,602 

7,225 

739,464 

321,342 

67,334 

145,201 

50,000 

27,002 

610,878 

1,350,343 

(3,300)

(10,716)

(9,146)

(36,140)

(13,040)

(9,809)

(7,068)

(6,364)

(255,568)

(27,650)

(49,612)

(6,481)

(145,201)

(3,240)

(50,000)

(1,552)

(27,002)

(661,888)

(28,548)

(4,261)

(37,544)

(65,106)

(11,834)

(37,295)

(184,588)

(846,477)

503,866 

(542,388)

(38,522)

73,900 

35,378 

145,875 

142,805 

12,500 

290,748 

19,992 

28,014 

51,480 

32,579 

20,050 

8,128 

752,171 

179,938 

59,067 

55,135 

5,000 

-

299,141 

1,051,312 

(3,300)

(7,882)

(9,146)

(30,904)

(13,040)

(10,722)

(1,900)

(7,550)

(140,769)

(129,212)

(22,967)

(22,555)

(55,135)

(2,484)

(5,000)

-

-

(462,567)

(21,943)

(4,261)

(34,732)

(67,148)

(12,513)

(36,365)

(176,962)

(639,529)

411,782 

(545,538)

(133,756)

222,400 

88,644 

150,002 

145,883 

12,500 

290,748 

19,992 

28,276 

51,960 

35,906 

20,329 

8,986 

764,581 

153,750 

53,020 

-

5,000 

-

211,770 

976,351 

(3,300)

(7,882)

(9,146)

(28,394)

(13,040)

(11,442)

-

(8,728)

(120,009)

(152,778)

(18,821)

(24,988)

-

-

(5,000)

-

-

(403,529)

(19,035)

(4,261)

(35,979)

(56,423)

(13,225)

(35,575)

(164,497)

(568,026)

408,325 

(549,358)

(141,033)

238,000 

96,967 

162,225 

148,589 

12,500 

290,748 

19,992 

28,472 

52,321 

36,410 

20,445 

9,021 

780,722 

153,750 

53,761 

-

5,000 

-

212,511 

993,233 

(3,300)

(7,882)

(9,146)

(25,838)

(13,040)

(11,004)

-

(9,867)

(117,156)

(152,778)

(21,674)

(24,687)

-

-

(5,000)

-

-

(401,372)

(15,981)

(4,261)

(35,269)

(58,317)

(13,570)

(34,601)

(161,999)

(563,372)

429,862 

(552,621)

(122,760)

224,900 

102,140 

846,616 

75,000 

1,744,485 

119,952 

167,029 

306,938 

192,728 

126,552 

44,244 

4,474,798 

1,347,142 

474,256 

632,454 

146,000 

108,007 

2,707,859 

7,182,656 

(19,800)

(65,132)

(68,890)

(213,136)

(80,186)

(57,957)

(39,330)

(36,789)

(1,070,070)

(605,008)

(200,651)

(99,664)

(632,454)

(20,000)

(146,000)

(6,209)

(108,007)

(3,469,284)

(164,825)

(26,200)

(220,650)

(375,924)

(77,281)

(214,359)

(1,079,240)

(4,548,524)

2,634,132 

(3,260,019)

(625,887)

994,600 

368,713 

Impacted by measure

New HTA Fiscal Plan 41

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 42 of 116
Summary of Fiscal Plan Measures by Year

New HTA Fiscal Plan

Fiscal Measures by initiative, FY18-FY23 in $millions

14

28

7

15

55

FY22

26 108

26

FY21

22

20

17

19

15

FY20

12

FY19

17

32

7

3 3

7

4

-3

7

18

0

0

7

15

6

0

FY18

1

FY23

123

25 4

15

88

14

16

3

11

16 0

CIP Optimization Increase Tolls Rightsizing Discretionary Funds Contract Re-Bid Others

42

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 43 of 116
HTA will reorganize into a more effective organization focused on gaining 

synergies and carrying out its specific goals

1. Governance

▪ New structure attenuated from future political cycles and influence.

▪ The Board of Directors will include independent directors with the power to appoint/remove management; they will 

have expertise in roads, infrastructure, revitalization, innovation, and private sector partnerships

2. Organization

▪ Forward-thinking lean organizational strategy with best-in-class FTE efficiency achieved through workforce

transition

▪ Construction and O&M program internally overseen but optimized through outsourcing

▪ Build scalable contract management approach, which aligns resource levels with funding

3. Objective Decision-Making

▪ HTA will prioritize the following key design principles to create more effective governance and organization structures:

─ Deliver upon HTA mission to provide a safe and efficient transportation system

─ Move towards a contract management model to deliver excellent service at best value

─ Outcomes-based prioritization of projects based on economic impact

─ Maximize access to federal funding and, if possible, facilitate future access to capital markets

─ Incorporate streamlined processes to deliver a lean and effective organization

─ Include public policy decisions as defined and measured input into cost-benefit analyses

▪ HTA will institute a performance based culture in which:

― Project and program performance are evaluated based on industry standard KPIs

― All employees evaluated on merit principle, with strict position control and cost-benefit analysis requirements 

for all new positions and promotions

New HTA Fiscal Plan 43

1

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 44 of 116
HTA’s new board structure will increase other operating expenses by 

$500k per annum

$2.5M in 

costs over 6 

years

▪ Beginning in Fiscal Year 2019 – PRHTA will operate under the control of a new board, which includes four industry 

expert board members.

▪ In order to attract and retain board members with the desired qualification, HTA will need to compensate nonemployee members in a manner similar to private board members.

▪ HTA intends to compensate each non-employee board member $75k per year. Total direct compensation will 

total $300k per year. Board members are payed salaries as stipends, and are not entitled to any payroll benefits.

▪ These professional board members will be identified by a search firm, at an estimated cost of 33% of board 

compensation, total search fees not to exceed $100k in years in which new members are recruited.

▪ Each board member will be reimbursed for applicable office expenses and required board travel based on 

expenses incurred at a rate of $25k per year, or $100k total per year.

▪ In total, the new, professional board structure will increase other operating expenses by $500k per year, and 

serve to enable the organization to operate as an objective corporate-like entity.

Total cost to implement $M

0.5 0.5 0.5 0.5 0.5

0

FY18 FY19 FY20 FY21 FY22 FY23

New HTA Fiscal Plan 44

1

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 45 of 116
The new board structure will consist of both administration leaders and 

independent members to ensure effective governance of the organization

Industry experts will be identified by a professional search firm, approved by the 

Governor and serve staggered 2, 4, and 6 year terms, with 5 year terms 

following. Estimated cost of maintaining professional board is $500K per year

HTA board members will be held to the highest ethical 

standards, independent members can only be removed 

from roles before term expiration for a breach of the 

public trust

Board Composition

HTA Board of 

Directors

Mission to revitalize 

infrastructure through 

innovation and 

sustainable economic 

development

Finance 

Professional

Relevant 

Professional

Relevant 

Professional

Treasury 

Secretary

Exec. 

Director 

AAFAF

Secretary

of Transportation

Licensed 

Engineer

Board Design Overview

A Establish an independent governing body of 7 members 

with a minority (3) appointed by the Governor and a 

majority (4) identified by a private search firm from the 

private sector (and approved by the Governor).

B Stagger membership tenure to further mitigate the risk of 

board disruption through political turnover.

C Achieve desired expertise to maximize efficacy of longterm strategic planning and decision- making.

D Apply strict conflicts of interest limitations and 

independence requirements to ensure that directors are 

correctly incentivized.

E Appointment and removal of HTA leaders entrusted in the 

board, according to objective, merit-based standards, and 

pre-established KPIs

New HTA Fiscal Plan 45

1

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 46 of 116
Developing a Performance Management Culture

New tools to track key performance indicators

▪ HTA is reshaping its organizational culture to emphasize accountability and performance through the use industry best practice 

Key Performance Indicators (KPIs)

▪ HTA has developed performance management dashboarding capabilities for many of its key programs, including:

─ Construction Department Controls included within Fiscal Plan Assumptions

▪ Pre-construction planning timeline and cost variance (Target <15%)

▪ Bid price-to-completion variance (Target <15%)

─ Road Network Condition Improvements have been Targeted in the Capital Improvement Plan

▪ Improve and Maintain Road Conditions to Federal Categories of Good and Fair (Target 95%)

▪ Improve and Maintain NBI bridge conditions (deck area) to achieve and sustain a state of good repair (Target 95%)

─ Incident Response – HTA has developed an Incident Response Dashboard, tracking incident response time, average service 

time (tow and non-tow) and tracking progress towards mainland benchmarks, including:

▪ Average Response Time Incidents & Service Patrol (Target < 15 minutes)

▪ Average Roadway Clearance Time (Target < 90 minutes)

▪ Incident Duration Classification (Targets TBD)

▪ HTA is developing systems to support performance management metrics

─ HTA is developing integrated Traffic Management Center reporting system (Sunguide) in collaboration with the Southwest 

Research Institute (SwRI).

─ HTA’s Performance Management Information System (PMIS) will go live by the beginning of FY19, with additional modules 

coming online by Dec. 2019. HTA will utilize this system to support improved metrics collection, reporting and management, 

including:

▪ Highway safety (accident and fatality rates)

▪ Transit usage

▪ Signal Conditions

▪ Farebox Recovery Ration

▪ Environmental Impact

▪ Urban Area Congestion

New HTA Fiscal Plan 46

2

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 47 of 116
Priority organizational dashboard KPIs over the next six years

Customer 

welfare

Financial 

discipline

Operational 

excellence

Mobility ▪ Reduce single passenger automobile journey to work (PR - 80%, US average - 76%)

Traffic reduction ▪ Reduce the congestion cost per commuter (San Juan - $1,150, US average - $1,045)

▪ Reduce annual O&M expenditures - ~$7.4M yearly savings expected from contract re-bid and toll 

optimization

▪ Increase farebox recovery ratio across all transit operations – estimated at ~39% for new BRT

O&M

efficiency

▪ Improve and maintain road conditions to Federal categories of Good and Fair (i.e., 95%)

▪ Improve and maintain NBI bridge conditions (deck area) to achieve and sustain a state of good 

repair (i.e., 95%)

Resilience

▪ Generate enough excess cash flow to be able to fund strategic projects (e.g., Traffic reduction) and 

sustainable debt service

Debt 

sustainability

Environmental ▪ Reduce GHG transportation emissions - PR currently at ~11 MMtCO2e

sustainability

▪ Reduce pre-construction planning timeline and cost variance to <15%

▪ Reduce bid price-to-completion variance to <15%

Project delivery

▪ Reduce average incident response time and service time to < 15 minutes

▪ Reduce average roadway clearance time to < 90 minutes

Incident 

management

▪ Reduce road fatality rates (PR - 2.13 per 100M VMT, most unsafe US state (South Carolina) - 1.88 

VMT)

Safety

Connectivity ▪ Reduce travel time index (PR - 1.31, US average - 1.23)

Category Indicator Metrics1

SOURCE: US DOT, Texas A&M Transportation Institute, PR DRNA, ACS, BTS

1 HTA will undertake a long range planning effort to set targets against these key metrics, and strive to make improvements towards 

US national benchmarks

47

2

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 48 of 116
A priority set of KPIs will facilitate improved performance by increasing 

transparency and providing a base for incentives / penalties

Improved 

performance

Schedule separate monthly 

performance meetings with 

employees and contractors to 

review dashboard, and define 

penalties for delays / cost 

overruns

Implement monthly KPI reports, 

performance dashboard and 

disseminate across the organization

Set semi-annual targets by 

role and project category 

and cascade down the 

organization

Improved 

performance Set direction and context Budget, 

KPIs, 

and targets

Performance 

tracking

Corrective

actions,

rewards,

and consequences

Performance

meetings and

dialogues

Action 

plans

Effective 

performance 

management

Identify key implementation 

milestones, timelines and 

owners, along with any key 

interdependencies, budgets 

and resourcing required

Enforce penalties for nonperformance (e.g., 

exclusion from subsequent 

bids) and acknowledge / 

compensate good 

performers 

New HTA Fiscal Plan 48

2

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 49 of 116
Income adjusted toll mile comparison by state1,2 Toll mile comparison by state , cents 1

, cents

Unlike PR-22, which is operated by concessionaires, HTA has not 

implemented a regular toll rate increase system to keep up with inflation

1.4

1.5

2.0

2.1

2.2

2.6

2.6

3.1

3.4

4.6

5.1

5.5

5.5

5.5

6.0

6.1

6.4

7.4

7.7

8.3

8.3

8.3

9.3

New Jersey Turnpike Authority - NJ Turnpike

Indiana Toll Road

Pennsylvania Turnpike

Alligator Alley

Ohio Turnpike Commission

Oklahoma Transp. Auth. - Bailey Turnpike

US median

PR-52

PR-20 10.6

New York State Thruway - Mainline Section

North Texas Tollway Authority-Dallas (N) Tollway

Central Florida Expressway Authority

Oklahoma Transp. Auth. – Will Rogers Turnpike

PR-53

Florida Turnpike Enterprise-Mainline

North Texas Tollway Authority-Bush Turnpike

US upper quartile

Foothill (SR 241)

Downtown Expressway

E-470 Public Highway

Dulles Greenway

Chicago Skyway

Pocahontas Parkway 14.4

14.8

11.8

Northwest Parkway

22.0

Dulles Toll Road

Chesapeake Expressway

Powhite Parkway

Miami-Dade Expressway

▪ HTA has not increased tolls in line with inflation, while PR-22 (concessioned) has implemented regular rate increases to keep up with inflation. As such, 

PR-22 and PR-5 are not reflected in the above, nor is PR-66 which as of today is priced in line with peer states

▪ On a toll per mile basis, PR-52 and PR-20 are below the US median, while PR-53 is below the upper quartile

▪ On an income adjusted toll per mile basis, PR-52 is below the US median, PR-53 is below the upper quartile while PR-20 is in the top quartile

3.8

4.4

4.6

5.1

5.3

5.4

6.6

6.8

7.7

9.5

Pocahontas Parkway 48.9

48.4

E-470 Public Highway

Chicago Skyway

Foothill (SR 241)

US upper quartile 28.1

40.0

30.5

28.0

Northwest Parkway

28.1

Dulles Greenway

66.7

North Texas tollway Authority - Bush Turnpike

New York State Thruway-Mainline Section

18.8

17.0

Dulles Toll Road

Alligator Alley

Pennsylvania Turnpike

Oklahoma Transportation Authority-Will Rogers Turnpike

14.0

PR-20 10.6

Oklahoma Transportation Authority-Bailey Turnpike

Central Florida Expressway Authority (Formerly Oocea)

US median

New Jersey Turnpike Authority-New Jersey Turnpike

PR-52

Indiana Toll Road

Ohio Turnpike Commission

PR-53

11.8

Miami-Dade Expressway 13.0

17.5

Florida Turnpike Enterprise-Mainline

Noth Texas Tollway Authority-Dallas North Tollway

17.9

Chesapeake Expressway

Powhite Parkway 20.6

25.0

Downtown Expressway

New HTA Fiscal Plan 49

SOURCE: SDG toll rate benchmarking analysis, SDG toll rate & traffic revenue forecast,

1 Toll rates are the standard Electronic Tag Tolls with no further discounts (e.g., no weekend, volume, senior, loyalty programs). Tolls as of Jan 2018

2 Income adjusted to specific road corridor within Puerto Rico

3

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 50 of 116
Increasing tolls based on a tiered CPI catch up should generate ~$77M in 

incremental revenue from 2018 to 2023

$756M

$833M

145

150

115

125

130

110

135

155

105

100

140

120

FY18 19 20 21 22 FY23

FP baseline

Tiered catch-up

6 year toll 

Annual toll revenue revenue $M 1 $M 

Tiered catch-up of historical CPI since 

last toll raise, plus average CPI of 

1.62% to account for current year(s), 

over the first 5 years; Subsequent 

years increased by CPI plus 1.5%

▪ HTA can increase toll revenues by 

~10% or $77M over the next 6 years, 

by adopting a tiered increase in toll 

rates between FY19-23

▪ PR-52 represents 91% of the $77M 

incremental revenues, and is 

currently below the income adjusted 

US median toll per mile (see 

previous slide)

▪ The tiered catch up helps to ensure 

that the purchasing power of toll 

revenues keeps up with inflation, 

and is supported by third party 

revenue estimates

New HTA Fiscal Plan 50

SOURCE: SDG toll rate benchmarking analysis, SDG toll rate & traffic revenue forecast

1 Scope includes existing tolls only (i.e., PR-20, PR-52 and PR-53), and excludes higher tolls on PR-66

3

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 51 of 116
PR-52, which is >90% of incremental revenues, will have average annual 

increases of 5 cents on toll plazas over the next 5 years

Toll plaza

2018

(existing) 2019 2020 2021 2022 2023

MONTEHIEDRA 0.35 0.37 0.39 0.41 0.43 0.46

CAGUAS NORTH 1.50 1.59 1.69 1.79 1.88 1.98

CAGUAS SOUTH 1.00 1.06 1.13 1.19 1.25 1.32

SALINAS 1.75 1.86 1.98 2.09 2.20 2.32

SOUTH RAMP SAL. 0.35 0.37 0.39 0.41 0.43 0.46

NORTH RAMP J DIAZ 0.50 0.53 0.56 0.59 0.62 0.66

SOUTH RAMP J DIAZ 0.50 0.53 0.56 0.59 0.62 0.66

PONCE 0.75 0.79 0.84 0.89 0.93 0.98

Toll rate projections1 $ 

▪ Toll rates on PR-52 will increase by 5.5% annually between 2019-23 to catch-up with CPI, and increase at CPI plus 1.5%(~3%) 

subsequently, in line with PR-22

▪ Toll roads would continue to offer significant time and reliability value to customers that well exceeds out of pocket costs (total cost 

of delay of $9.10 an hour2for someone taking an alternative toll-free route from Ponce to San Juan, vs. $5.513total tolls paid on PR-52 

via Ponce, J. Diaz, Salinas, Salinas South Ramo, Caguas North and Montehiedra toll plazas). 

New HTA Fiscal Plan 51

SOURCE: BLS, Reuters, SDG 2018 tolling report

1 Tiered catch-up of historical CPI since last toll raise, plus average CPI of 1.62% to account for current year(s), over the first 5 years. Subsequent 

years increased by CPI plus 1.5%

2 Assumes $7.00 wage cost per hour (50% of hourly wage) and $2.10 cost of excess fuel per hour. Total delay of one hour based on estimated 

additional time taken for a one way trip on a toll free route (i.e., PR-14) from Ponce to San Juan vs. PR-52, departing at 8am on a weekday

3 Based on total tolls in 2019 (after first year of increase)

3

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 52 of 116
Program

Funding received by Puerto 

Rico (To date)1, $M 

Total Program Funding 

(To date)1, $M

Funding received 

by PR (% of total)

INFRA (2016-2018)

TIGER (2009-2016) $10 0.3%

$300 1.2%

Highways for LIFE 

(HfL) (2006-2013)

$0 0%

Community 

Development Block 

Grant – Disaster 

Recovery (2018)

$0.10 0.1%

TIFIA loans (1999-

2017)

$18,000 64%

Capital Investment 

Grants (1996-2017)2

$308 0.8%

HTA expects to increase federal funding by over $50M over six years by 

targeting discretionary federal grants, including the $18B PR CDBG allocation

Key program opportunities

3,581

37,659

68

28,000

840

26,000

▪ $18.1B in HUD CDBG-DR 

funding has been awarded 

Puerto Rico, providing a set of 

funds that HTA has the 

opportunity and commitment 

to pursue

▪ PR has not secured any 

discretionary grants over the 

last 5 years - the last 

discretionary grant Puerto 

Rico received was in 2012 

under IBRD, while TIFIA and 

CIG grants date to the early 

2000s

▪ PR can generate at least 

~$15M in additional run rate 

funding by 2023 or >$50M 

over 6 years, by capturing 

0.3% of the CDBG-Disaster 

Relief grant to PR, or its per 

capita fair share (1%) of only 

TIGER and INFRA funds

▪ HTA will meet the local share 

of all additional federal 

funding it receives

New HTA Fiscal Plan 52

SOURCE: FHWA website, transportation.gov

1 Time period for each program denoted in brackets

2 ~$2.3B available p.a. from FY 2018

4

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 53 of 116
Fiscal Measure: Toll Collection Optimization

Zarif

Background

▪ System Improvements and Vendor Enhancements

– Open Road Toll (ORT) System Enhancement: Improve legacy system’s ORT hardware (lasers, cameras, antennas and sensors) 

and software that will allow HTA to reduce leakage, improving TAG (AutoExpreso) and License Plate transaction data and 

increased accuracy and reliability of vehicle classification.

– Toll Operator Improvement: Upgrade system to improve toll transaction life cycle and user accounts recharge channels, 

decrease gross Violations (better violation management and violation letter bundling), provide consistent reporting, improved 

system monitoring, minimize redundancy and reduce current revenue leakage. In addition, HTA expects improved customer 

service.

– Violation Avoidance: Create automatic registration functionality, based on AutoExpreso traffic records, between the user’s tag 

code (AutoExpreso) and the user’s vehicle license plate number, allowing HTA to charge vehicles based on license plate, when 

the tag code is not available. This functionality will reduce the amount of violations as those transactions will be charged to the 

AutoExpreso user rather than becoming a Violation, in addition to reducing the current Violations Management cost supported 

by PRHTA.

– Improved Void Accountability: Map all types of “void” transactions (those that are not pursuable due to data quality) and 

define which void transactions HTA should not be paying for. (Currently, HTA pays for all void transactions).

▪ New Initiatives

– ORT Conversion: Convert existing (canalized) lanes into ORT lanes. HTA expects the latter to be more accurate and have lower 

leakage as well as better classification.

– Web Maria: Collect post-Hurricane Maria toll fares that could not be collected in the weeks following the hurricane.

5

New HTA Fiscal Plan 53

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 54 of 116
Implementation timeline and expected annual savings

Savings from Toll Collection Optimization, FY18-FY23 ($M)

Fiscal Measure: Toll Collection Optimization

54

[A]:ORT System Enhancement:HTA's vendor negotiations will produce cost savings of $6.5mm over 17months in FY18and FY19.

[A]:ORT System Enhancement:based on toll operator experience,HTA expects upgrades of the current system willreduce revenue leakage byaround 1%, or $1.3mm/year.

[B]: Toll OperatorImprovement:based on toll operator experience,HTA expects improving operator capabilityto increase revenue by2%(reduced leakage) and reduce cost by20%;needed CAPX = $3.5mm,starts FY19.

Includes Eclipse $500k / year and a one-time $50K RFP cost

[C]: Violation Avoidance:based on toll operator experience,HTA expects adding automated license plate / AutoExpreso tags will help HTA to reduce violations (currently 600K / month) by 25%,at $0.60 cost perletter,savings achieved are about $1.1mm/ year. [C]: Violation

Avoidance:based on toll operator experience,byadding automated license plate / AutoExpreso tags,HTA will be able to reduce its violations by 25%.Accordingly, it will automaticallycollect the average toll fare of $1.06versus the $0.23 on average that it collects 

currentlyon each violation lettersent (due to its 22%violation collection rate). Reducing the 600K violations letters it sends each month by 25%leads HTA to send 150Kfewer violation letters. The difference of $0.83 collected perinstance for 150K instances per months is

$125K additionalrevenue per month,or $1.5mm per year.

[C]: Violation Avoidance:as noted above,based on toll operator experience,HTA expects to reduce its violations by 25%.Without this change,HTA’s baseline projection is to receive about $26.6mm per year in toll violations.Reducing violation instances by25%would

have a proportional impact on HTA’s violation revenue,or an average reduction of about $6.7mm per year.

[D]: Improved void accountability:based on toll operator experience,HTA expects a decrease of 140Kvoids per month that HTA is currentlypaying for (or about 4%of the total gross violations). For each of 140Kvoids per month,HTA no longer will pay the average to

ll fare of $1.06,and willsave about $150K per month,or about $1.8mm per year.

[E]:ORT Conversion: based on toll operator experience, at select plazas,HTA expects 5%revenue gain from increased traffic bi-directionality.The current revenue baseline for those plazas is $47 mm,so a 5%increase would lead to a $2.3mm per year revenue

increase (starting in FY20).The CAPX needed to support this investment is $21mm.

[E]:ORT Conversion: based on toll operator experience, at select plazas (rolled out in three phases CAPX $18mm),HTA expects 2%revenue gain from ORT based on reduced leakage. The revenue baseline for those plazas (for all three phases) is $96 mm,so a 2%increas would lead to a $

1.9mm per year revenue increase once all the phases are complete.Similarly,HTA expects 3%cost reduction mostly from lower maintenance costs.On a cost baseline of $12mm,a 3%reduction would lead to savings of $0.4mm per year.

[F]:Web Maria: estimate of howmuch of the $7 mm revenue HTA can recover (assumed 50%recovery) from those drivers not able to pay theirtolls for weeks following Hurricane Maria.

5

6.3

-1.7

1.0 0.5 2.6

5.4

FY18 FY19 FY20 FY21 FY22 FY23

$14.M in 

savings 

over 6 

years

Analysis of Opportunity

[A]

[B]

[C]

[D]

[E]

[F]

$M

ORT System Enhancement

Toll Operator Improvement

Violation Avoidance

Improved Void Accountability

System Improvements and Vendor 

Enhancements

ORT Conversion

Web Maria

New Initiatives

Total Savings

FY18

1.9

-

-

-

1.9

-

3.5

3.5

5.4

FY19

4.6

-

(3.8)

1.8

2.6

3.9

-

3.9

2.6

FY20

1.3

1.8

(3.9)

1.8

1.0

FY21

1.3

5.4

(4.1)

1.8

4.4

FY22

1.3

5.4

(4.2)

1.8

4.3

(6.0)

-

(6.0)

(1.7)

FY23

1.3

5.4

(4.2)

1.8

4.2

2.1

-

2.1

6.3

FY18-FY23 total

11.7

17.9

(20.1)

8.9

18.4

(7.8)

3.5

(4.3)

14.1

- (3.9)

- -

1.0 (3.9)

1.0 0.5

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 55 of 116
HTA can secure $11M in ancillary revenue over the six year plan period [1]

HTA will continue to explore innovative ways to increase revenue, including:

▪ Traffic Information Monetization: Identify opportunities to monetize 

traffic information and continue to expand highway sensor network.

▪ Right of Way / Utilities Infrastructure Rights: Determine opportunity for 

monetizing unused right of way via utilizes and other infrastructure rights.

▪ Other-Mobility Services: Evaluate viability of increasing mobility services 

(park & ride / ride share) and develop an implementation plan as 

necessary

▪ Equity Solutions: Equity in new P3 concessions could be used to settle 

debt obligations and raise capital for reinvestment

▪ Real Estate Asset Disposition: HTA estimates a potential $1.5M of 

annual revenue by developing a noncore asset disposition program

▪ Reactivation of the Joint Development Program: This program provides 

for residential/commercial projects in the Tren Urbano corridor

▪ Specific Service Signs in Toll Highway Concessions: Implementation of 

service signs could result in ~$250K of annual revenue to HTA

▪ Toll Concession Advertisement and ATM services agreement: HTA

estimates the potential for $25-30K of annual revenue related to 

concession advertisements

New HTA Fiscal Plan 55

[1] specific dollar estimates from HTA’s July 2017 Fiscal Plan

6

Other Revenue Initiatives 

FY18-FY23 Total, $M

10.9

0.1

7.5

2.0

1.3

HTA will research and consider the below potential revenue streams:

Toll Concession Advertisements and ATM services 

agreement

Real Estate Asset 

Disposition

Specific Service Signs 

in Toll Highway 

concessions

Reactivation of the Joint 

Development Program

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 56 of 116
A total capital efficiency opportunity of ~4% will help HTA target improved 

performance within a constrained capital environment

Delivery

optimization

50

Baseline

capex

3,044

25

2,927

Optimized capex

41

Project

prioritization

Soft cost

efficiencies

Impact of capital efficiency measures on Baseline capex estimates

$, Millions

Capital efficiency opportunity of ~4%1

1 Best in class project prioritization in infrastructure projects can save 7-15% while improved delivery efficiencies can reach 15-25% in savings. 

Based on these benchmarks, further opportunity may exist in addition to the estimate of 4% across the portfolio. The delivery optimization 

opportunity is discounted using the Commonwealth’s inflation adjustment to account for potential increases in construction costs. 

New HTA Fiscal Plan 56

7

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 57 of 116
HTA will target capital efficiencies through project prioritization, delivery 

improvements, and soft cost savings

Improved project prioritization focusing on just the local projects (non-FHWA) portfolio has the opportunity to save ~$41M 

over the next 6 years, while delivery optimization of both federal and local projects and soft cost improvements can produce 

~$75M of savings in 6 years. 

1 Value at stake limited to not-yet-active locally funded roads projects. 

2 Value at stake limited to not-yet-active roads projects. Previous estimates had an additional ~$78M opportunity for delivery optimization, but because construction 

cost inflation was not factored into previous analyses, an inflationary factor in line with the Commonwealth (~1.5-2%) was added to reduce the CIP’s delivery 

optimization opportunity by approximately ~$78M. Note that other Title III instrumentalities (PREPA and PRASA) did not adjust Fiscal Plans for inflation.

Key levers

Total $116

Capex 

reduction, %

Estimated savings,

$M 

▪ Further align projects with socioeconomic priorities e.g., congestion, ~1.4% $41

road quality, average AADTs, and economic benefits

▪ Further review STIP and CIP projects on secondary and tertiary roads 

and de-prioritize roads with less AADTs and economic benefit, to ensure 

that resources are being well utilized in capital constrained environment

Project 

prioritizetion1

▪ PR-66 case study highlights proof-of-concept that projects can be limited 

to a 5% targeted cost overrun by improved delivery

▪ Additional optimization with project management, contractor incentives

(e.g., ratings/bonuses), and contract structures (passing delivery risk)

▪ Improve project execution on whole portfolio with improved delivery 

with on locally funded roads projects and federally funded roads 

projects, with innovative contracting and better project execution

~1.6% $50

Delivery 

improvements2

▪ Find opportunities to segment Federal and non-Federal dollars to reduce 

pre-construction regulatory burden

▪ Capture efficiency benefits of outsourcing (economies of scale etc.) and 

reduce overall budgeted soft costs to allow for lower soft cost budgets 

for both federal and state construction projects (~$200M value at stake)

~0.8% $25

Soft cost 

savings

6a

6b

New HTA Fiscal Plan 57

7

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 58 of 116
Providing Better Construction Results through Innovative Project Execution

Historically, HTA has experienced cost overruns averaging approximately 30% more than initial cost estimates.1 Through the implementation of outsourcing and 

improved project delivery methods via the Workforce Transition Program and “MOU” initiatives, HTA believes it can reduce cost overruns by 15% or more (depending 

on project type and asset class), which is in line with industry standards and builds on experience from PR-66. 

7a

▪ Highway projects have historically been delivered using a design-bidbuild process, where construction contracts have been structured on a 

per-unit-pricebasis.

▪ Because the bidding process (viaRFP) has been typically based on unit price

contracts, contractors have not been incentivized to present bids with the 

lowest possible costs to adequately complete a project. Instead, contractors

provide unbalanced bids that result in higher prices at project completion. 

This problem has been extensively discussed in the construction

management literature.

▪ Additionally, because construction has been predominately managed inhouse, personnel costs have not declined commensurately with less 

construction spend, nor were in- house managers’ appropriately 

incentivized to adhere to project goals.

▪ These methods of project execution have resulted in cost overruns

averaging 30% and significant completion delays.1

▪ Some historical projects have seen better success - such as PR- 66 which 

experienced just 5% cost overruns when it utilized outsourcing and 

innovative contracting to improve project execution.3 See the following 

page for additional discussion on the results of PR-66.

▪ HTA has already begun transforming its project delivery capabilities in an 

attempt to eliminate its project backlog. These transformations have begun 

via compliance with the Memorandum of Understanding (“MOU”) between 

the HTA and the FHWA.4 See the Appendix for more information on theMOU.

▪ HTA forecasts that by complying with the objectives specified in the MOU, 

and more widely implementing an outsourcing model and innovative

contractingmethods, the organization can reduce cost overruns by more than 

15%.

3

▪ Implementing the outsourcing and innovative contractingmodels will better 

align contract managers’ incentives with on time/on budget project delivery, 

improve HTA’s ability to scale staff to properly implement construction 

spend, and align contractors’ incentives for more cost-conscious competitive 

bidding, among other benefits.

▪ The baseline Fiscal Plan already includes project execution 

improvements and estimates 15% cost cost overruns.

▪ If HTA continued with historical highs of 30% cost overruns, the baseline 

CIP would be $279M higher than forecasted in the baseline. These 

savings have not been factored as its own fiscal measure dueto how the 

CIP was prepared.

Historical Project Execution: Target Project Execution:

New HTA Fiscal Plan 58

1 Historical cost overruns estimate provided by HTA Management.

2 Industry standard cost overruns provided by HTA construction office.

3 2016 Case Study on PR-66 base on published technical papers. González Quevedo, Sergio L., Effective Competitive Procurement and Financing with 

Innovative Contracting: The Solution to Transportation Infrastructure Construction, Operations and Maintenance in the 21st Century, Key Note 

Speaker in CRC 2016, June 2016.

4 MOU signed by the government of Puerto Rico and Federal Highway Administration. Source: MOU-PR2016-02-29-094734.

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 59 of 116
Providing Better Construction Results through Innovative Project Execution

Case Study: PR-66*

During construction of Phase II of PR-66, HTA utilized (i) innovative contracting,such 

simplifying the RFP process by prequalifying bidders and granting early completion 

bonuses, and, (ii) outsourcing, to unlock future savings from value engineering to 

reduce cost overrunsto 5% and project durationto just 6% over schedule.1

Previous phases of PR-66 were delivered via design-bid-build using a unit-price 

contract. These phases had average cost overruns of 33.1% and average project 

delays of 60%.1

Notably, cost and project duration savings occurred once HTA fully utilized both

innovative contractingand outsourcing.

Some Benefitsseen during PR-66 Phase II:*

Outsourcing

▪ Increased flexibilityto hire specialized support for projects

▪ Increased usage of valueengineering

▪ Increased abilityto scale staffto properly implement the funding

▪ Better aligned managers’ incentives with on time/on budget projectdelivery

Innovative Contracting

▪ Streamlined RFP process (such as prequalified bidders), thus reducing process

duration

▪ More competitivebidding process drove costs down

▪ Better structured contracts aligned incentives with project goals 

(e.g. early completion bonuses)

* Note: PR-66’s Phase II results were successful in reducing costs and increasing project delivery speed. Such success is the target for HTA, and HTA will strive to achieve similar 

results where feasible during the Fiscal Plan period. Although HTA cannot recognize savings from innovative contracting methods in the current CIP for projects already

contracted (i.e. RFP process is complete), HTA will be able to reduce costs through outsourcing and better project management on projects not yet contracted (~3.8% of CIP).

1 2016 Case Study on PR-66 base on published technical papers. González Quevedo, Sergio L., Effective Competitive Procurement and Financing 

with Innovative Contracting: The Solution to Transportation Infrastructure Construction, Operations and Maintenance in the 21st Century, Key Note 

Speaker in CRC 2016, June 2016

2 González Quevedo, Sergio L., J.J Fontán et al. Use of Hybrid bidding method for costs and risks reductions in highway construction. Construction 

Research Congress. 2 016, pp. 759–769. 2016

Out of ten sample PR-66 projects in 2012, two projects used historical execution 

methods which resulted in 21% cost overruns. When innovative contracting and 

outsourcing was used, the projects averaged just 5% overruns. Over the course of the 

entire PR-66 project, cost overruns averaged 33.1%.1

7a

During construction of PR-66, HTA used various methods to implement each stage of the project over various periods from 1998 through 2012. In Phase II 

(2011-2012), HTA utilized a combination of innovative contracting and outsourcing to reduce cost overruns and project delays.1*

Case Study: PR-66 1, * Sample PR-66 Project Results: Project Execution Methods Lead to Cost Differences2

20

25

5

15

30

10

0

25.0%

17.0%

11.8%

Project 

3

Project 

8

% increase in Cost

3.1%

0.1%

6.2%

8.6%

1.6%

Project 

7

Project 

10

Project 

4

Project 

5

Project 

9

0.8%

Project 

6

7.6%

Project 

2

Project 

1

Outsourced inspection 

and construction 

management with 

innovative contracting 

(2012); Avg. =5%

In-house inspection and 

construction management 

with regular contracting 

(2012) Avg. = 21%

New HTA Fiscal Plan 59

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 60 of 116
Reducing cost overruns through effective outsourcing

$50.1M in savings 

over 6 years

Proposed Changes

▪ Not all projects have seen higher-then-budgeted costs. For example, some portions of PR-66 experienced just 5% cost overruns when

HTA effectively used outsourcing and innovative contracting to improve project execution.2(See previous slide for additional discussion 

on the results of PR-66).

▪ In its baseline projections, HTA has already set aggressive targets for reducing cost overruns to 15% or 8% depending on project type; 

thus reducing expected construction cost overruns by 24% and 60%, respectively, when compared to the 20% historical weighted 

average. This change represents savings of approximately $92M already captured in the baseline. 

▪ Via improvements from outsourcing and innovative contracting on all applicable federal and local projects not yet underway,3 HTA is 

aiming to reduce is cost overruns from 15% to 8-10% In total, after accounting for the Commonwealth’s inflation adjustment, these 

changes represent an estimated $50.1M in savings.

Background

▪ From 1986-2015, HTA experienced 20% cost overruns on construction projects on a weighted average basis. In 2015, cost overruns 

averaged approximately 29%. 

▪ In prior years, construction cost overruns could be as high as 37% per year.

▪ These cost overruns resulted from poor cost minimizing incentives in the RFP process, high headcount in periods of low construction 

spend, and a lack of adequate incentives for internal staff to adhere to project cost and duration goals.

FY19 FY21

5.7

11.3

FY2018 FY20 FY22 FY2023

0.5

11.3

7.1

14.2

7a

60

1 Historical cost overruns estimate provided by HTA Management.

2 2016 Case Study on PR-66 base on published technical papers. González Quevedo, Sergio L., Effective Competitive Procurement and Financing with 

Innovative Contracting: The Solution to Transportation Infrastructure Construction, Operations and Maintenance in the 21st Century, Key Note 

Speaker in CRC 2016, June 2016

3 Assumes reduced contingency for bridge projects to factor in the more intensive requirements and uncertainty. 

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 61 of 116
Soft cost savings from accelerated reconstruction program

Proposed Changes

Background

▪ HTA will expand the accelerated reconstruction program to eligible projects, improving project delivery time and reducing total soft costs 

on these projects by ~22%.

▪ HTA estimates that $730.6M in hard costs could be covered by this program over the 6-year period, resulting in savings of ~$25M.

▪ HTA estimates that external soft costs will average 18.5% of hard costs. Of this total, planning, development, and environmental costs 

have been estimated to be 3.0% of hard costs.

▪ In FY18-FY19, HTA has begun to execute an accelerated program for eligible reconstruction costs. 

▪ Under this program, planning, development and environmental costs were reduced to 1.0% of total hard costs.

$24.6M in savings 

over 6 years

6.6 6.8 5.4

2.8 3.0

0.2

FY2018 FY19 FY20 FY21 FY22 FY2023

$ millions Total Hard Costs Eligible Hard Cost Eligible Soft costs Post-Measure Soft Costs Savings

Earmarked Projects 22.1 19.9 2.1 1.7 0.4

STIP 478.2 264.2 33.7 26.5 7.2

Long-term CIP 641.7 446.5 79.0 62 17

Total 1142.0 730.6 114.8 90.2 24.6

7b

New HTA Fiscal Plan 61

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 62 of 116
Procurement 

and contracting

Maintenance

Opportunities to outsource for higher quality and 

lower costs:

Planning, specifications, and estimating:

Outsourcing of project PS&E functions

Project delivery and management:

Contractor rating systems to incentivize and use past 

performance as a measure for winning future contracts

Project delivery value chain opportunities exist allowing delivery optimization 

and efficiency, and outsourcing to reduce costs

Project funnel and prioritization:

Agency to assess project needs and prioritization, and 

create a project funnel in line with fiscal constraints

Internal optimization measures:

Procurement and contracting:

Alignment of payment methods (e.g., CHICA, unit price) 

based on project type, size, and scope

Maintenance:

Evaluate maintenance contracts, enforce contractual 

obligations, and develop innovative incentives

6

Project funnel 

and 

prioritization

Planning, 

specifications, 

and estimating

Procurement 

and contracting

Project delivery 

and 

management

Maintenance

Project delivery

value chain

1

2

3

4

5

7

62

Outsourcing opportunities

Internal optimization opportunities

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 63 of 116
HTA has utilized multiple delivery methods and payment structures in the 

past, and plans to utilize those experiences to further improve delivery

Utilization

Design-bidbuild

Design-build

Public 

private 

partnership

▪ Most commonly used 

method in PR for 

highway projects

▪ Unit price payment 

structure typically 

incorporated

Current challenges Improvement opportunities 

▪ Quantity uncertainty has resulted in 

significant cost overruns and 

schedule delays

▪ Unbalanced bids producing cost 

overruns and schedule delays

▪ Contractors may not be incentivized 

by completion cost

▪ Previous project financing utilized 

PRHTA municipal bonds

▪ Delivery method previously utilized 

for specific projects, current project 

pipeline limited

▪ Limited apparent recent utilization 

for project delivery 

▪ Need to explore further funding for 

P3 project opportunities

▪ Processes have taken longer and 

required more external support 

given potential complexity

▪ Improve project quantification during 

project the project scoping, and 

design stage

▪ Consider project risk transfer when 

selecting payment structure

▪ Evaluate hybrid payment structures 

when possible

▪ Identify potential projects that could 

effectively utilize a design-build 

delivery (DB) method

▪ Right size volume of DB projects to 

increase competition

▪ Evaluate hybrid payment structure 

for optimal risk transfer

▪ Identify project opportunities that 

would generate sufficient revenues 

to service debt

▪ Evaluate and optimize risk transfer 

during procurement 

▪ Explore bundling a series of smaller 

projects into a potential program

▪ Utilized in late 90’s for 

Carolina to Canovanas

projects

▪ Contractor 

prequalification based 

on experience and 

financials

▪ P3s have become the 

globally preferred 

solution for large scale, 

complex projects

76

63

SOURCE: Effective Competitive Procurement and Financing with Innovative Contracting: The Solution to Transportation Infrastructure 

Construction, Operations and Maintenance in the 21st Century, by Sergio L. Gonzalez Quevedo, PhD, PE

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 64 of 116
Outsourcing and Workforce Transition

▪ HTA currently operates as an in-house infrastructure developer and has 1,283 employees.

▪ HTA’s headcount has not reduced commensurately with the reduction in construction investment. From 2004 to 2017, the compound 

annual growth rate of construction investment has declined by 10% while headcount has only declined by 4%.

▪ Outsourcing and a workforce transition will therefore align headcount with construction spend; aiding the transition to a lean, contract

management organization. The transformed organization will have fewer internalstaff and will provide opportunitiesfor cost-effective 

outsourcing of various functions.

▪ By outsourcing key functions,HTA:

– Obtains efficienciesto allow for an effective program management

– Can adjust the organization to adequate size and provides flexibility to adjust resources to achieve future CIP or projects

– Enhances functions and services to effectively meet best practices and updated requirements

▪ Historically, HTA’s experience with outsourcing has been positive. Outsourcing has resulted in improved road conditions as well as 

reduced construction project duration and cost overruns, as demonstrated with HTA’s experience with PR-22, and PR-66.

▪ HTA’s operational transformation relies on the successful implementation of the workforce transition program. 

▪ HTA must meet the FOMB’s 15% Commonwealth wide personnel cost reduction target during the 6 year Fiscal Plan period. The 

method HTA chooses to reach these targets is still being developed, but the target will be enforced through PROMESA’s budgetary 

approval process. The target may be met with further reduction in personnel, not from other areas of expenditure. 

▪ HTA has already begun taking steps to comply with a Memorandum of Understanding (“MOU”)1 with the FHWA. The MOU’s goals 

overlap with HTA’s transformation to a contract manager from an in-house developer. Under the MOU, HTA is working to, among other 

things, streamline the project billing process, project delivery process, and contracting procedures. See Appendix for further discussion 

on the MOU initiatives.

▪ HTA will also capture pension savings related to the reform of the Employees Retirement System as detailed in the New Commonwealth 

Fiscal Plan dated April 2018 (see next page)

8

64

1 MOU signed by the government of Puerto Rico and Federal Highway Administration 

Source: Signed Memorandum of Understanding MOU-PR2016-02-29-094734

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 65 of 116
Applying CW-wide pension reduction target of 10% yields $14.4M in savings 

over the next 6 years

FY18 FY19 FY20 FY21 FY22 FY23 FY18-23 Total 

Construction - PayGo 13.5 14.5 14.5 14.5 14.5 14.5 86.0 

Construction - non-PayGo 5.3 5.7 5.7 5.7 5.7 5.7 34.0 

Non-Construction PayGo 4.4 4.7 4.7 4.7 4.7 4.7 28.1 

Non-Construction non-PayGo 10.3 11.1 11.1 11.1 11.1 11.1 65.6 

Baseline pension contributions 33.6 36.0 36.0 36.0 36.0 36.0 213.6 

Savings (10%) (3.6) (3.6) (3.6) (3.6) (14.4)

Post-reduction pension 

contributions 33.6 36.0 32.4 32.4 32.4 32.4 199.2 

9

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 66 of 116
Operating Contract Re-bid / Optimization

Zarif

Background

▪ HTA’s operating budget includes major, long-term operating contracts, including those supporting transit, design and construction, and 

other long-term outsourced functions

▪ Many HTA contracts operate on longstanding contracts which have been extended or modified and are currently overpriced due to:

─ Not reflecting HTA’s current operating environment

─ Including fuel costs from earlier eras in which fuel costs were much higher

─ Pricing in risk of non-payment

▪ HTA is developing systems to support performance management metrics

─ HTA is developing integrated Traffic Management Center reporting system (Sunguide) in collaboration with the Southwest Research 

Institute (SwRI)

─ HTA’s Performance Management Information System (PMIS) will go live by the beginning of FY19, with additional modules coming 

online by Dec. 2019. HTA will utilize this system to support improved metrics collection, reporting and management, including:

• Highway safety (accident and fatality rates)

• Transit usage

• Signal Conditions

▪ Contracts in many cases exceed cost benchmarks from reputable national data sets, past procurements, and other performance metrics

Proposed Changes

▪ In accordance with HTA’s status under Title III of PROMESA, the terms of individual contracts, and changes in cost drivers including fuel, 

HTA has sufficient leverage to request improved terms from contracting partners, or recomplete outdated contracts through solicitation.

▪ As HTA’s financial operations improve in accordance with MOU requirements and this Fiscal Plan, HTA will strengthen the case for

reduced cost of risk

▪ HTA will re-compete contracts and negotiate with vendors to improve contract terms to reflect current circumstances

10

New HTA Fiscal Plan 66

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 67 of 116
Voluntary Exit Programs: Law 211 and Early Termination Program

Background

▪ Law 211

– The article 211-2015 “Pre-Retirement Voluntary Program Act” is a retirement incentive program that was passed on December 28, 2015.

– To qualify for the Law 211 incentive program, HTA employees had to be less than 61 years old and have a minimum of 20 years of service

– Employees who met the criteria and chose to participate would receive 60% of base salary (average of the 3 highest salaries)

– 162 HTA employees chose to participate in this retirement incentive program: Group A: 131 participants; Group B: 31 participants

– Program participants’ employment ended with HTA on June 30, 2017 (the end of FY17) and therefore the only additional ongoing cost related to

those employees was the amount they were owed under the retirement incentive program parameters

– The savings to HTA is the difference between those payments and the ongoing salary and benefits that HTA would have paid those employees had

they remained employed at HTA

▪ Early Termination Incentive Program

– The Early Termination Program was initiated in February 2018 with 14 participants enrolled for termination from HTA as of 2/28/18 (deadline to enter

the program is 3/15/18)

– Each participant will receive full base salary until June 30, 2018 in addition to health insurance, at a cost of $100 / participant

– As of June 30, 2018 HTA will not incur any additional Early Termination program costs

Proposed Changes

– No further changes needed: HTA executed this retirement incentive plan as of June 30, 2017

– Since July 1, 2017, HTA has been receiving salary and benefits savings from Law 211 program

– As of July 1, 2018, HTA starts benefiting from the Early Termination program

11

New HTA Fiscal Plan 67

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 68 of 116
Voluntary Exit Programs: Law 211 and Early Termination Program

$26.7M in 

savingsover 6

years

Implementation timeline and expected annual savings

Savings from Voluntary Exit Programs, FY18-FY23 ($ in millions)

11

Analysis of Opportunity

7

6

5

4

3

1

FY18 FY19 FY20 FY21 FY22 FY23

[A.1]: Per participant list from HTA's finance team [A.2]: Per participant list from HTA's

finance team

[B]: Average salary of 131 Group A participants - assumed same for other participants

[C]: Applying a 38.5% benefit factor based on FY18's relative ratio of benefits / salary

[D]: Calculation

[E]: Calculation [F]: Calculation

[G]: Based on detailed payout schedule provided by HTA's finance team

[H]: 14 Participants * 5 months of base salary (until June 30th 2018) plus 5 

months of health insurance at $100/participant/month

[I]: Calculation

Law 211 participants 131 31 162

Early Termination Incentive Program 14 - 14

Average salary at time of retirement 44,548 44,548 [B]

Average benefits at time of retirement 17,151 17,151 [C]

Average salary + benefits $61,699 $61,699 [D] = [B] + [C]

Total cost per year at time of retirement $8,946,413 $1,912,681 $10,859,095 [E] = ([A.1]+[A.2]) * [D]

Total cost (FY18 - FY23) $65,154,568 [F] = [E] * 6

less: payouts to Law 211 participants $38,160,471 [G]

less: payouts to Early Termination Incentive Program $260,448 [H]

Savings from voluntary exit measure $26,733,649 [I] = [F] - [G] - [H]

Group A Group B Total

Voluntary Exit Programs

[A.1]

[A.2]

New HTA Fiscal Plan 68

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 69 of 116
• Since its reorganization in the early 1970s, HTA has committed itself to traffic reduction through new infrastructure projects. 

Specifically, HTA has been an innovator in the utilization of contraflow lanes, reversible lanes, and movable barriers for congestion 

relief.

• HTA has implemented various temporary solutions in situations when long-term construction would take too long, and

permanent, flexible solutions where the latter have been necessary. For example:

Shortly after its

reorganization, the HTA

implemented contraflow

lanes for bus priorities in

the San Juan to Rio Piedras

corridor. This contraflow

solution granted exclusive

access of the two left lanes

to buses of major

thoroughfares at peak

traffic times. Bus Travel

times were reduced from

90 minutes to 40 minutes

The first movable barrier

implementation was

developed as a temporary

solution during a largerscale permanent

construction project.

Signalized Reversible lanes

were implemented in two

phases in Bayamon. In

1994, a 3-lane solution was

implemented reducing

travel time by 30%. A

permanent, 5-lane solution

which required land

acquisition was

implemented in 1997.

A barrier was implemented

in the Baldorioty

Expressway and Minillas

Tunnel. Travel time savings

were initially reduced by

over 50%. Route diversion

form alternate routes

resulted in a 50% increase

in traffic with cumulative

travel time savings of over

20%.The temporary

solution was replaced by

the widened PR-26 which

grew from 4 to 8 lanes.

DTL/BRT in PR-22 from PR5 to PR-165 was

implemented in 2012.

Travel time for general

lanes was reduced by over

20% and reduced from 50

minutes to 10 minutes

within the DTL. Revenues

from the DTL accounted

for $4 million a year

The movable barrier

solution in PR-52 between

PR-1 and the Caguas Norte

Toll Plaza was

implemented in 2004.

Travel time reduction was

over 30%. This will be

replaced by the PR-18/PR52/ DTL/BRT and the

movable barrier solution in

PR-30 in 2020

12 HTA’s commitment to traffic reduction

1970 1990

PR-167

Signalized

Reversible Lanes

PR-187

Movable

Barrier

1971-1973 1994 1996

San Juan

Contraflow

Lanes

PR-5/22

Movable Barrier

Implementation

2010

PR-22 

BRT/DTL

2004

2000

PR-52 

Movable 

Barrier

New HTA Fiscal Plan 69

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 70 of 116
San Juan incurs annual congestion costs of ~$165M, with traffic spread 

across key highways and local ‘hot spots’

Congestion map of San Juan by delay and road type

Line width denotes amount of total delay hours along route

Highway - outer

Highway - inner

Major arterial

Minor roads

12

▪ San Juan incurs daily delays of 

~54,000 hours on average, with 

an hour of delay valued at $9.11

▪ Assuming 260 working days, and 

75% congestion levels on nonworking days, congestion cost is 

~$165M annually

▪ 52% of the delay is concentrated 

on 26% of roads in downtown 

San Juan (including feeders), 

with a delay intensity of 264 

hours/ mile compared to 193 

hours/mile on average for minor 

road and arterials 

▪ Highways contribute to 37% of 

the delay, despite being only 

17% of the road length

▪ The 23 miles of inner highways 

in San Juan are a particular 

traffic reduction target: 10 

congested miles with 399 delay 

hours per mile

70

1 Assuming that an hour of excess fuel costs $2.1 at vehicle fuel economy of 24.7, with traffic speed of 18 miles / hour during congestion, and 

assuming that value of time is half the median hourly wage ($14)

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 71 of 116
Top target routes for traffic reduction include major highways such as PR-52, 

PR-66, and PR-18

500

350

2,000 3,000

450

250

600

500

1,100

550

200

300

150

100

50

400

650

0

0 1,000 1,500 2,500 3,500 4,000

Total delay, Hours

PR-18 S

Delay per mile, Hours/mile

PR-177 O

PR-2

Avenida Monserrate Avenida Jesus T Piñero

PR-52 S

Expreso Las Américas

Autopista José de Diego

PR-66 E

Expreso Román

Baldorioty de Castro

Minor roads

Highway outer

Major Arterial

Highway Inner

Delay Concentration

High

Low

12

New HTA Fiscal Plan 71

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 72 of 116
HTA will implement high benefit-to-cost ratio solutions to manage traffic and 

positively impact economic recovery

8

▪ Optimize toll collection systems to improve traffic flow on major toll roads, increase compliance and improve revenue capture.

▪ Reduce reliance on toll plazas in favor of overhead tolling, decreasing labor costs and improving rate of travel

Electronic Toll 

Systems

Transit improvements

▪ Expand transit coverage by creating BRT systems and increasing feeder links to HTA (e.g., BRT line from Caguas to the TU 

Centro Medico Station – see following slides for details)

▪ Invest in improvements to traffic signaling hardware and software (e.g., PR-52/18/30/1 intersection modernization – see 

following slides for details)

▪ Invest in building additional assets such as viaducts and tunnels to reduce congestion, and implement dynamic tolling at these 

intersections to generate own-source revenues (e.g., San Antonio tunnel – see following slides for details)

▪ Consider the expansion of lane control and dynamic merge control to ease traffic during commuting hours, construction 

projects, and for special events w/ use of reversible lanes.

▪ Explore use of Active Traffic Management, including variable speed limits, shoulder use, and dynamic restrictions to improve 

efficiency of current highway networks (e.g., DTL lane on PR-52 BRT project – see following slides for details)

Improve 

Congestion 

Management 

Infrastructure

▪ Further Develop HTA’s capability to provide real-time traveler information to major roadways in the San Juan – Caguas –

Gurabo corridor, including:

– Install Additional Intelligent Transportation Systems (ITS) field devices which allow HTA to provide real time information 

to the traveling public (e.g., PR-26 ITS – see following slides for details)

– Utilize real-time data to provide roadside messaging and alerts to the traveling public

– Support enhanced performance management through traffic data consolidation and analysis, and utilize congestion data 

to inform future capital investments

▪ Improve traveler alert capabilities with the inauguration of HTA’s traffic management center and improvement of integrated 

capabilities (e.g., PR-52 and PR-66 Traffic Management Centers – see following slides for details)

Implement 

Traveler 

Information 

Systems

▪ Improve efficiency of incident clearing by integrating services with Police and EMS on major roadways (e.g., PR-52 and PR-66 

Traffic Management Centers – see following slides for details)

▪ Facilitate expedited incident clearance (towing, patch and debris clearing) in high traffic corridors (e.g., PR-18/26/30/52 

Highway Service Patrol – see following slides for details)

Enhanced 

Incident 

Management

Non- Recurring Recurring

12

New HTA Fiscal Plan 72

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 73 of 116
Ongoing traffic reduction projects as a priority for HTA (1 of 2)

HTA continues to invest in traffic reduction through innovative technology and key infrastructure 

investments. HTA recognizes that effective traffic reduction will contribute to Puerto Rico’s economic

recovery.

HTA prioritizes traffic reduction within Capital Improvement Programs based on cost/benefit analysis 

which include economic impact on a project-specific basis, but has not conducted the econometric 

studies required to estimate impact on the Island’s overall GNP.

PR-52 Traffic 

Management Center

PR-18/26/30/52

Highway Service

Patrol

PR-52

Traffic 

Management 

Center

PR-66

Integrated Traffic

Incident Management Facility

Expedite resolution of roadway incidents safely

▪ Implementation limited by independent contractors and regulatory issues

▪ Phase 1 started April 2017; Phase 2 (for PR-1/2/20) underway

Estimated Completion

May 2018

Oct. 2018

Dec. 2018 Collect incident and traveler information and marshal resources to manage

congestion

▪ Facility will house EMS, Police of P.R., PRHTA – Traffic Management and 

Freeway Operations, and Public Services Center

▪ Center will continue data collection practices in place since Jan 2016

▪ 100% Federally Funded

Facilitate quicker responses to incidents

▪ Facility will house EMS, PRHTA, Police of P.R., and Public Services

▪ 100% Federally Funded

12

New HTA Fiscal Plan 73

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 74 of 116
12 Ongoing traffic reduction projects as a priority for HTA (2 of 2)

Nov. 2018

PR-52/18/30/1

Intersection 

Modernization

Congestion 

ManagedLanes

Dynamic Tolls

Reversible Lanes

Reduce congestion in major intersection in Caguas, enable public transportation and lane capacity management through variable toll rates

▪ $148 M total investment in traffic reduction, funded with regular Federal funds. An Infrastructure for Rebuilding America (INFRA) 

discretionary grant of $118M is currently pending. HTA is not currently considering this grant in its baseline projections, but if the grant is 

receive it would allow for redirection of resources to other projects.

▪ The DTL project facilitates PR-52 Bus Rapid Transit Implementation

▪ Phases I-III (PR-52/18/1) Replaces and improves Reversible Contraflow Lane Replacement providing two lanes with shoulders up to PR-18.

▪ Phases III-V (PR-52/30/1) Bridge Construction (connecting PR-52 and PR-30) for congestion management lanes, facilitating seamless 

transfer from highway to high-traffic surfaceroad.

Dec. 2019

(Phase I-III)

Oct. 2020

(Phase III-V)

PR-66 Integrated

Incident Management Center

Highway ServicePatrol PR-26 ITS Devices

(PR-18, 26,30, 52)

PR-26 ITS Devices

and Traveler 

Information

Install Intelligent Transportation System(ITS) Devices to gather traveler information

▪ Closed Circuit Television (CCTV) cameras; Bluetooth (travel time and origin/destination); Microwave Vehicle Detection Systems (MVDS) 

(speed and volume); Fiber Optics; and Dynamic Message Signs (DMS) (traveler communication) – a first in Puerto Rico

Estimated 

Completion

Reversible Contraflow Lane

(PR-18)

Congestion 

Management 

Completion 

Timeline 

(select initiatives)

April May Jun Jul Aug Sep Oct Nov Dec Oct

2018

Enhanced Highway 

Service Patrol

(SEGURO)

Integrated Facilities 

Traffic Incident 

Management

ITS Installation

PR-52/18/1

2019

PR-52/30/1

New HTA Fiscal Plan 74

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 75 of 116
Specific estimates of surface grid traffic across the 1,300 intersections included in this effort are not currently collected. However, HTA expects the economic 

impact of these improvements to be very high. 

Optimizing Existing Infrastructure – Planned Signal System Investments 

(included in baseline)

• HTA’s network of nearly 1,300 intersection traffic signals can enable reductions in travel time, vehicle operations costs, accidents, and emissions. 

However, the system is currently in a state of disrepair:

– Signals Damaged or Destroyed by Hurricanes

– Regular repairs and system maintenance deferred

– Insufficient intersection timing investments

– Interrupted network connectivity

• Without a consistent signal maintenance, repair, and operations program, the network is ineffective, and often counter-productive

• HTA is reinvesting in its signal systems infrastructure with both capital investments, and a dedicated signal management program to reclaim the signal

grid as an asset for traffic reduction, including:

– Emergency Repairs

– Annual Maintenance

– Restoring network connectivity to 833 signals

Total Improvements to 

Signaling Systems:

$117.6M in Fiscal Plan 

Period (included in 

baseline)

Opex Capex

Year Maint. Comms Total

FY18 0.0 0.0 0.0 0.0

FY19 3.2 1.0 0.5 4.7

FY20 0.0 1.0 0.5 1.6

FY21 0.0 1.1 0.5 1.6

FY22 0.0 1.1 0.5 1.6

FY23 0.0 1.1 0.5 1.6

$3.20 $5.31 $2.60 $11.1

Intersection

Timing

Signal Optimization Program

Operating Expenditures ($,millions)

Signal Optimization Program

Capital Expenditures ($,millions)

Year Maint. Total

FY18 6.8 13.3 20.1

FY19 17.8 13.3 31.1

FY20 2.0 13.3 15.3

FY21 0.0 13.3 13.3

FY22 0.0 13.3 13.3

FY23 0.0 13.3 13.3

$26.55 $79.97 $106.5

Emergency

Repair

12

New HTA Fiscal Plan 75

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 76 of 116
Economic benefits of planned traffic reduction projects amount to $58M 

• HTA recognizes that congestion in the San Juan metropolitan area exceeds many major metropolitan areas, and 

negatively impacts quality of life, and economic productivity in the region.

• HTA continues to prioritize projects to maximize economic impacts - both those with direct benefits to HTA and also to 

the Commonwealth more generally - associated with traffic reduction, including travel time, vehicle operating costs, 

accidents, and emissions.

PR52 estimates based on Metric Engineering Cost-Benefit Analysis Study, general assumptions of ~$7 per lost hour in 

traffic (half of median wage) and excess fuel costs of $2.1 at vehicle fuel economy of 24.7, with traffic speed of 18 MPH. 

Annual Economic Impact of Traffic Reduction Projects

4.1

Total

Annual Person-Hours Saved

Itemized Inputs (mil. $)

3.2

PR-52

Intersection

Modernization

0.2

PR-26

Information

Traveler

Systems

0.7

Travel Time Savings $21.1 $1.3 $4.7 $27.1

Veh. Op. Cost Savings $18.4 $0.4 $1.5 $20.3

Accident Cost Savings $5.9 $0.4 $1.3 $7.6

Emission Cost Savings $2.5 $0.2 $0.6 $3.2

TOTAL BENEFITS $47.8 $2.3 $8.1 $58.2

Traffic Mgt. 

Centers

And Service 

Patrol

12

New HTA Fiscal Plan 76

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 77 of 116
Revenue generating traffic reduction opportunities (1/2)

▪ HTA places traffic reduction as a priority within its Capital Improvement Plan, targeting reductions in travel time, 

emissions, and congestion-related accidents. Some priority CIP projects can support revenue generation.

▪ HTA currently operates the Caguas-to-San Juan stretch of PR-52 as a toll road on a flat fee basis.

▪ HTA has received $175M in FTA project funding to support develop Bus Rapid Transit (BRT) lanes, and construction is 

scheduled to begin in FY18, and complete in FY20.

▪ HTA will establish a workday Bus Rapid Transit (BRT) line from Caguas to the TU Centro Medico station in accordance 

with the HTA agreement, providing a more-convenient option for reaching the TU system, offsetting roughly 39% of 

the BRT operating costs.

▪ The new BRT lanes, restricted from traffic during peak commuting hours to allow efficient travel for BRT buses, 

present the opportunity to provide congestion relief while generating additional revenue.

Background 

Proposed Changes

▪ HTA will operate the Bus Rapid Transit Systems operating at an estimated 39% farebox recovery ratio, exceeding local 

bus operation standards, and supporting ridership growth for Tren Urbano.

▪ HTA will implement Dynamic Toll Lanes within the PR-52 Caguas BRT corridor to provide congestion relief, while 

generating additional toll revenue.

▪ In accordance with CIP, HTA will implement phased construction of 7 viaducts and 1 tunnel to reduce congestion, and 

will implement dynamic tolling at these intersections to generate own-source revenues.

12

New HTA Fiscal Plan 77

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 78 of 116
Revenue generating traffic reduction opportunities (2/2)

Analysis of Opportunity

• Operating expenditures for BRT (contracted operation with 

ATI vendor) begin in 2021 at $1.3 million per year (with a half 

year in 2021)

• DTL implementation follows BRT, with partial revenue in 2021

• $175 million in PR52 total capital costs are being invested in 

FY19-22, funded entirely with federal funding (FTA) 

• Phased implementation of 7 viaducts and the San Antonio 

tunnel is included in HTA’s Fiscal Plan, with a total of $249M 

in local funds

$13.1M in revenue 

over 6 years

BRT revenue of $2 per-person with 1.1k estimated riders on 220 work days per year.

DTL/BRT optimized scenario based on SDG feasibility study.

Viaduct revenue estimates are preliminary engineering estimates, and there exists an opportunity for potential savings and congestion 

reduction. 

Ridership impact on TU not estimated due to bus-to-TU transfer policy.

Bus Rapid Transit DTL Viaduct Total

Year Exp. Rev. Net Rev. Rev.

FY18 0 0 0 0 0 0

FY19 0 0 0 0 0 0

FY20 0 0 0 0 0 0

FY21 -0.6 0.3 -0.3 2.8 0 2.4

FY22 -1.3 0.5 -0.8 5.6 0.3 5

FY23 -1.3 0.5 -0.8 5.8 0.6 5.6

Total -3.2 1.3 -1.9 14.2 0.9 13.1

Revenue Generating Traffic Reduction

PR 52 - BRT, DTL, DTL Viaducts - Combined ($, millions)

Implementation timeline and expected annual savings

Net Revenue Traffic Reduction, FY18-FY23 ($ in millions)

5.0 5.6

2.4

FY20 FY21 FY22 FY23

0 0

FY18

0

FY19

12

New HTA Fiscal Plan 78

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 79 of 116
HTA continues to evaluate the possibility of additional public private 

partnerships

13

▪ Currently, HTA operates and performs CapEx for the toll roads PR-20, PR-52, PR-53 and PR-66.

▪ HTA continues to analyze options for how to efficiently operate the toll roads, including: 1) complete 

outsourcing of toll operations and hiring of a contract manager, 2) A PR-22/PR-5 style concession with 

an upfront payment, and 3) a concession with no upfront payment and a 40-year share of revenues 

(broken out into two 20-year contracts).

▪ Preliminary analysis using a basic NPV model reveals a wide disparity of valuations between these 

options depending on a variety of assumptions, including: toll rates; financing costs (including costs of 

equity and debt and debt/equity ratios; opex assumptions; competitive environment for bidding; 

recapitalization costs; terms of concession, etc.

▪ HTA will explore different structures of concessions while simultaneously implementing the 

outsourcing model. Built in flexibility will be used in outsourcing so that the contracts can be 

transferred to concessions in case an adequate concession model is developed. 

▪ Implementation of concessions requires additional third party analytical and advisory support based 

on a two year schedule and has an estimated cost of $5M. Savings associated with outsourcing can 

be implemented even more quickly. This $5M cost is reflected within the fiscal measures for FY19 

and FY20 of the Fiscal Plan as HTA explores its concession options. 

New HTA Fiscal Plan 79

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 80 of 116
Concessions on key roads, such as PR-52, could allow HTA to secure capital 

inflows, improve operations and attract private investment

Efficient operations 

and maintenance 

by the private sector

Reduction in 

toll violations

Capital inflow 

to the government

Opportunity to 

attract private 

sector investments

Private-sector 

participation could bring 

about innovation in O&M

such as the use of 

advanced technology, 

e.g., weight-in motion 

systems to ensure costeffective and foolproof 

O&M, since the 

concessions are typically 

long-term agreements 

which incentivize 

operators to use 

technology.

Concessions can help 

generate upfront capital 

for the government, and 

can help create 

bandwidth in the 

government to focus 

more on developing 

greenfield projects.

A variety of concession 

structures, such as a 

revenue share agreement, 

could potentially achieve 

similar efficiencies as a 

single lump sum 

concession depending on 

precise deal terms, 

including the use of 

proceeds

Private players have the 

incentive to minimize toll 

violations as it directly 

impacts their own cash 

flows, and could build on 

the toll collection 

optimization measures in 

the Fiscal Plan (see 

previous slides on Toll 

Collection Optimization 

measure) 

Many institutional 

investors, such as pension 

funds, insurance funds 

and sovereign wealth 

funds, are increasingly 

investing in infrastructure 

assets as: 

▪ Such investments 

match their longterm investment 

horizon and help 

them hedge against 

inflation.

▪ Since these toll roads 

are operational, there 

is lesser risk in 

investing in these 

assets compared to 

greenfield projects. 

13

New HTA Fiscal Plan 80

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 81 of 116
HTA is committed to analyzing the concession opportunity for its existing toll 

roads, and implementing results, by 2020

13

Approach to analysis

▪ Identify assets, including 

PR-52

▪ Evaluate different potential 

deal structures using a 

variety of scenarios within 

Fiscal Plan constraints

▪ Determine the socioeconomic impact of 

different potential 

structures

▪ Model capital costs and 

resource needs of 

implementing different 

PPP scenarios

▪ Understand necessary 

initial and ongoing 

investments 

▪ Conduct “value for 

money” analysis

▪ Value concessions based 

on projected cash flows, 

growth, and potential deal 

terms considering Fiscal 

Plan financial constraints

Asset specific financial and 

economic analysis

Mechanism and costs of 

implementation

Decision on precise longterm form of PPP

HTA has budgeted $5M towards evaluating the comprehensive PPP 

opportunity as a fiscal measure

New HTA Fiscal Plan 81

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 82 of 116
Cost Transformation Plan: Other Opportunities

Associate workload drivers with each remaining FTE and develop zero-based staffing model to justify positions, hours, 

and overtime. Improve controls to reduce excess hours and eliminate overlapping positions.

Workforce modeling, hours 

and overtime control

Identify opportunities to consolidate purchasing across categories and use collaborative purchasing to leverage market 

power to pursue discounted prices from vendors not yet addressed through contract re-bid and optimization. Improve 

controls over operating contracts to improve collection of contractor and concessionaire penalties.

Procurement 

Modernization

Continue efforts begun in compliance with MOU requirements to develop best-in-class internal controls over contracting, 

Enhance Internal Controls employee expenses, and other categories of operating expenses not yet optimized within fiscal measures.

Along with the MOU initiatives, HTA plans to identify opportunities to optimize the construction process (which would 

also be complemented by workforce transition and organizational structure initiatives). These include:

▪ Pre-construction: Develop standardized decision tree to apply to the project bidding process in order to maximize 

competition among pre-qualified bidders. Develop best practices for contracting, such as standard term sheets to 

ensure consistent delivery.

▪ Construction: Identify detailed short term and long term construction projects that should be outsourced to third party 

experts.

▪ Quality assurance: Develop a quality assurance plan which includes standard procedures on appropriately adding 

incentive clauses to contracts in order to ensure contractors’ goals are aligned with HTA’s goals.

Optimize Construction 

Value Chain

Additional Operations Assess post-transformation workforce and contracting model, and identify areas for improvement and savings.

Optimization

HTA expects that the specific cost transformation opportunities identified within this plan account for the vast majority of cost reduction opportunities 

currently available, however HTA will continue to explore innovative ways to reduce costs, including:

New HTA Fiscal Plan 82

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 83 of 116
VI. LIQUIDITY SITUATION

New HTA Fiscal Plan 83

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 84 of 116
13-Week Cash Flow Projection

Actual (Act.) / Projected (Fcst.):

($000's) Week Ended:

Operating Receipts

Net Toll Fares

Transit Revenues

HTA Collected Electronic Toll Fines

Other Income

Total Operating Receipts

Intra- Government Receipts

Transfer from Government of PR

Special State Grant

PR Gov. Infrastructure Funding

Total Intra- Government Receipts

Other Receipts [Separate Federal Transfers by Program]

Federal Aid - FHWA & Earmarked Projects

Federal Aid - FTA (Sec . 5307 & Sec . 5309)

Emergency Reconstruction Program

Total Other Receipts

Total Receipts

Operating Disbursements

Payroll and Fringe Benefits

PayGo

Christmas Bonus

Utilities

Contracted Services

Litigation Reserve/Right of Way

Transportation

Professional Services

Other Operating Expenses

Misc Expenses

Total Operating Disbursements

Capex Disbursements

CIP Federal

CIP State

Emergency Reconstruction Program

Total Disbursements

Net Cash Flow

Unrestricted Bank Cash Balance Roll- Forward

Beginning Cash Balance

Net Cash Flow

Other Inflows

Other Outflows

Ending Bank Cash Balance

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

Fcst.

16-Mar

Fcst.

23-Mar

Fcst.

30-Mar

Fcst.

6-Apr

Fcst.

13-Apr

Fcst.

20-Apr

Fcst.

27-Apr

Fcst.

4-May

Fcst.

11-May

Fcst.

18-May

Fcst.

25-May

Fcst.

1-Jun

Fcst.

8-Jun 13-week ...

...

1,569

...

628

54

2,251

...

-

-

-

-

...

644

-

5,400

6,044

8,295

...

2,100

-

-

200

2,703

-

47

380

...

-

5,430

...

700

220

5,400

11,750

(3,455)

...

98,140

-3,455

-

-

94,685

...

2,479

...

647

49

3,175

...

1,567

-

-

1,567

...

1,104

...

3,500

4,604

7,779

...

1,300

2,764

-

400

2,929

760

18

521

...

-

8,692

...

1,200

235

3,500

13,627

(5,848)

...

94,685

-5,848

-

-

88,837

...

-

...

768

79

847

...

-

-

-

-

...

497

...

2,734

3,231

5,645

...

4,300

-

-

400

3,993

-

15

503

...

-

9,211

...

540

249

2,734

12,734

(7,089)

...

88,837

-7,089

-

-

8 1,748

...

4,527

...

591

39

5,157

...

-

-

-

-

...

552

1,383

2,734

3,286

8,443

...

...

-

-

663

-

-

51

375

395

-

1,484

...

600

270

2,734

5,087

3,356

...

81,748

3,356

-

-

85,104

...

1,500

...

520

71

2,091

...

-

-

-

-

...

1,426

1,383

2,734

5,543

7,634

...

1,900

-

-

200

2,500

-

47

480

1,070

-

6,197

...

1,550

166

2,734

10,647

(3,012)

...

85,104

-3,012

-

-

82,091

...

2,370

...

536

47

2,953

...

1,567

-

-

1,567

...

322

1,383

2,734

4,439

7,392

...

1,350

2,764

-

400

2,875

760

18

380

...

-

8,547

...

350

100

2,734

11,731

(4,338)

...

82,091

-4,338

-

-

77,753

...

699

...

636

59

1,394

...

-

-

-

-

...

920

1,383

2,734

5,037

7,998

...

4,450

-

-

400

4,250

-

20

265

686

-

10,071

...

1,000

168

2,734

13,973

(5,975)

...

77,753

-5,975

-

-

71,778

...

4,632

...

656

54

5,342

...

-

-

-

-

...

460

1,383

2,734

4,577

9,919

...

333

-

-

663

-

-

51

450

...

-

1,497

...

500

304

2,734

5,035

4,885

...

71,778

4,885

-

-

76,663

...

1,535

...

578

49

2,161

...

-

-

-

-

...

1,564

1,383

2,734

5,681

7,842

...

2,050

-

-

200

2,350

-

47

400

...

-

5,047

...

1,700

150

2,734

9,631

(1,788)

...

76,663

-1,788

-

-

74,875

...

2,425

...

595

61

3,081

...

1,567

-

-

1,567

...

212

1,383

2,734

4,329

7,410

...

1,500

2,764

-

400

2,700

760

18

275

...

-

8,417

...

230

100

2,734

11,481

(4,071)

...

74,875

-4,071

-

-

70,804

...

715

...

707

52

1,474

...

-

-

-

-

...

984

1,383

2,734

5,101

8,142

...

4,150

-

-

400

4,575

-

20

375

...

-

9,520

...

1,070

150

2,734

13,474

(5,332)

...

70,804

-5,332

-

-

65, 472

...

4,632

...

656

50

5,338

...

-

-

-

-

...

230

1,383

2,734

4,347

9,685

...

333

-

-

663

-

-

20

250

1,534

-

2,800

...

250

-

2,734

5,784

3,901

...

65,472

3,901

-

-

69,373

...

1,575

...

1,184

20

2,779

...

4,700

-

-

4,700

...

920

12,450

2,734

5,037

7,816

...

2,196

-

-

200

3,645

-

31

375

1,792

-

8,238

...

1,000

150

2,734

12,122

(4,306)

...

69,373

-4,306

8,524

-7,076

65,068

...

28,657

-

8,704

684

38,045

...

-

-

-

-

...

9,835

-

38,971

61,256

104,001

...

25,962

8,292

-

5,188

32,520

2,280

403

5,029

5,477

-

85,150

...

10,690

2,262

38,971

137,073

(33,073)

...

82,053

-18,434

-

-

65,068

[A]

[B]

[C]

[D]

...

...

[E]

...

[F]

...

...

[G]

[H]

[I]

...

...

...

[H]

[I]

...

[J]

[K]

[L]

[M

][N]

[O]

...

...

...

[P]

[Q]

[R]

...

...

...

...

...

[S]

...

[T]

New HTA Fiscal Plan 84

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 85 of 116
13-Week Cash Flow Assumptions

Footnote Line assumptions

[A] 1 Toll fares estimated based on January and February 2018 Collections, and adjusted for seasonality based on FY17 Toll Collections per day in each month. Assumes no more than four toll 

collection transfers per-month.

[B] 2 These revenues are used as a credit in Tren Urbano operating expenses invoice (ACI).

[C] 3 Toll fares estimated based on January and February Collections, and adjusted for seasonality based on FY17 Violation Collections per day in each month. Toll fines collected by treasury are 

included within Line 6 - Transfer from Central Government

[D] 4 Monthly other income (including Tag, Impact Fee, Rent, etc.) estimated based on average of other income received during the months

of January and February 2018 . Actuals reflect a $1.2M sale of land in the w eek ending in 8/11, and a transfer of $1.5M from investments the w eek of 2/16.

[E] 6 Total FY18 transfers w ill be $120.0M.

[F] 8 No funds are expected to be received for the rest of the fiscal period.

[G] 10 Forecast for remainder of FY18 represents request of the 92% of funds disbursed (Line 26). Estimate based on actuals from FY16- 17, Non-toll credit amount includes utilities and other grant 

ineligible expenses.

[H] 11 HTA Management Estimate for Approved Grant funding for Maint. & Operations for TU - exact amount to be confirmed based on Operator Invoices

[I] 12 Total revenues for emergency reconstruction programs are 47.2M - Construction Office Estimate, including HTA Management Estimate

including $8.9M underway in weeks ending 3/16 and 3/23.

[H] 15 Based on monthly payroll cost of $7.7M, including non-paygo retirement costs, plus $1M expected to be disbursed related to Pre- Retirement Contributions

[I] 16 Based on once-monthly invoice of approximately $2.7M YTD.

[J] 18 Based on monthly utilities cost (HTA estimate based on FY17 &18 historical) of $1M, plus TU electricity invoices delayed and expected to be paid before 6-30.

[K] 19 Based on monthly invoices of GILA (historical), ACI, First Transit and Other minor suppliers (as contracted) totaling approximately $9.6M.

[L] 20 Monthly payment of $760K was determined based on average of payments made during the months of January and February 2018 based on payment plan agreements. Cash basis estimate 

reflects reduced impact due to Title III status.

[M] 21 Monthly payment of $136K was determined based on average of payments made during the months of December 2017, January and February 2018. 

[N] 22 Monthly payment of $1.5M was determined based on average of payments made during the months of December 2017, January and February 2018 plus additional consulting involves 

expected to be paid in the upcoming months.

[O] 23 Reflects $6.7M in outstanding invoices scheduled to be paid by year-end, including 2-year payment to Department of Labor, TU Operator Arbitration Award, and past year unpaid operator 

invoices.

[P] 26 Monthly construction payments of $3.5M was determined based on average of payments made during the months of January and February 2018.

[Q] 27 Monthly construction payments of $704K was determined based on average of payments made during the months of January and February 2018.

[R] 28 Total funds expected to be disbursed for emergency reconstruction programs are $47.2M - Construction Office Estimate, including HTA Management Estimate including $8.9M underway in 

weeks ending 3/16 and 3/23.

[S] 33 Line used to register transfers between bank accounts or passthrough funds.

[T] 35 Ending Cash Balance Includes $20M in cash restrictions based on Federal Government requirements, $75M approved by OMB for FY18 has not yet been received, but upon receipt would be 

considered restricted and used in FY2019.

New HTA Fiscal Plan 85

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 86 of 116
VII. DEBT SUSTAINABILITY

New HTA Fiscal Plan 86

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 87 of 116
HTA Outstanding Debt

1 Outstanding bond estimates as of Fiscal Year End 2017 based on a Bloomberg data extract. 1 Other Includes: $200MM in Variable Rate Bonds, 

$57MM in CPI based interest-rate bonds, $.7MM in LIBOR based interest rate bonds maturing through 2045, $93MM in Capital Appreciation 

Bonds maturing through 2026. DGB line of debt based on HTA management estimates.

Current debt structure, USD millions

352

283

547

215

2011

56

1,024

1,874

Others1

1,733

6,084

• Insured Highway Revenue Bonds, Series 1968

• 24 expired lines of credits with GDB

• Uninsured Transportation Revenue Bonds, Series 1998

• Insured Transportation Revenue Bonds, Series 1998

Expired GDB 

Line of Credit

68

98

• Uninsured Highway Revenue Bonds, Series 1968

• Uninsured 1998 Sub. Transportation Revenue Bonds

• Insured 1998 Sub. Transportation Revenue Bonds

New HTA Fiscal Plan 87

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 88 of 116
Debt Sustainability post-measures

USD millions

▪ HTA has had insufficient cash flows to service its debt, and entered Title III in May 2017. It has not made payments since July 2017

▪ However, post the expected HTA allocation from the Commonwealth CAPX Fund, transfer from Government of PR, and the incremental positive cash flows of 

fiscal plan measures, HTA will have $355M cash flow as a surplus available through the Fiscal Plan Period for strategic projects and / or debt service. 

▪ The following matrix illustrates, for varying coupon levels and 

primary surplus, or net revenue, figures, the amount of restructured 

HTA debt that could be supported by that surplus level.

▪ The matrix assumes a 30-year, level debt service payment structure 

and only one-time coverage of net revenues to debt service.

Sensitivity Analysis: Implied 

Debt Capacity at 1.0x Coverage 

$432

$384

$344

$50

$865

$769

$688

$75

$1,297

$1,153

$1,032

$25 $100

$1,729

$1,537

$1,376

5.0%

4.0%

6.0%

Sensitivity Analysis: PV 

rate %

Values in USD millions

Illustrative Cash Flow 

Available

Retained Revenues to Central Government (530) (540) (542) (546) (549) (553) (3,260)

Revenues net of Retained Revenues 703 1,028 790 478 390 393 3,782 

Total operating and CIP expenses (828) (639) (1,133) (883) (700) (639) (4,821)

Transfer from Government of PR 138 97 74 222 238 225 995 

Cash Flow available (pre-measures) 13 (8) (19) 1 (11) (21) (44)

Total Measures 7 32 55 88 108 123 413 

Cash Flow available (post-measures) 21 25 35 89 97 102 369 

FY19 FY20 FY21 FY22 FY23 FY18-FY23 total

Toll Revenues Including federal Funds 1,233 1,568 1,332 1,023 939 946 7,042 

FY18

Expected HTA Allocation from Commonwealth CAPX Fund - - - - - - -

New HTA Fiscal Plan 88

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 89 of 116
VIII. IMPLEMENTATION PLAN

New HTA Fiscal Plan 89

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 90 of 116
Our goal is to transform HTA into a best-in-class infrastructure developer and

operator

As previously mentioned, PRHTA is responsible of constructing, operating, and maintaining Puerto Rico’s toll road network, major highways 

and mass transportation facilities. To properly meet its duty, the measures in this plan follow two main philosophies:

2. Streamline project execution and management by engaging

the best resources available

1. Transform the organization structure in order to gain 

synergies and position it for future effectiveness

Organize HTA into a world class infrastructure developer and operator moving it 

towards a contract management model, such as it is currently done today for design, 

land acquisition, construction and mass transit operations. HTA would manage third 

party contracts engaged through competitive bidding for each service required.

HTA envisionedstructure

▪ Competitiveness will be maintained by constantly evaluating current contracts and 

its performance and re-bidding to keep contracts costs and performance in-line 

with marketexpectations.

Project Delivery Phases

Establish best-in-class project delivery process to assure federal compliance and 

efficiently deployment of resources available to maximize the infrastructure 

developed and maintained.

▪ The streamlined process will be complemented by having the adequately sized 

resources, visibility of important metrics to allow for accurate and timely decision 

making, as well as the correct people with the right motivators and capabilities.

▪ Project delivery methods will include Value Engineering analysis and

1 ▪ innovative contract approaches early in the planning phase to maximize the

▪ value of each project.

▪ Skilled teams in the management of design and construction activities will

assure to meet objectives of reducing average change orders from 30% to 15%.

2

*For illustration purposes only

1 Case study of PR-18 & PR-66 procurement approach to be used as guideline for applicable projects.

2 Federal funded projects budget allows for a maximum of 15% increase to projects

Secretary’s 

Office

Executive & 

Deputy Director

Administration

and Finance

Support

Services

Integrated 

Transport 

Management

Construction 

Management

Project 

Development

Operations& 

Preservation

Customer 

Service 

Management

New and 

Emergency 

Construction

ElectronicToll 

Collections

Tren Urbano 

&Busses

Planning, 

Design,ROW, 

Environmental 

Studies

Roadway 

Operations& 

Maintenance

Chief Engineer 

Office

Federal Liaison 

Office

New HTA Fiscal Plan 90

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 91 of 116
Create a comprehensive Transformation Plan to enable HTA to effectively operate under current fiscal constraints, optimize revenue 

and expenses with consideration of macroeconomic, socioeconomic and environmental impacts, and to exit Title III status, while 

providing high-quality management of Puerto Rico’s integrated highway network to benefit its users / residents

Expenses

Structure

Revenue

▪ Specialized roads and transit authority with enhanced governance, expert leaders, and a mission to

▪ sustainably improve roads andinfrastructure

▪ Lean entity to efficiently and sustainably deliver roads and infrastructure mission without internal rigidities

▪ Optimized construction value chain, renegotiated operating contracts, and outsourcedproject-specific

▪ functions

▪ Scale workforce to meet current needs, and pursue cost-effective outsourcing, and margin

▪ optimization to right-size opex and generate cashflows

▪ Real estate assets identified & monetization options considered to provide cash flows for reinvestment

▪ Federal funds maximized, existing and future transit projects optimized to achieve higher fair box recovery

▪ Optimized toll roads with socio-economic and environmental impact of tolling and pricing considered

▪ Concessions considered for all optimized assets including as an implementation mechanism that 

maintains adequate funding for the integrated highway network

Vision for HTA

New HTA Fiscal Plan 91

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 92 of 116
Pursue guiding principles to address the financial gap and re-focus 

HTA towards its objectives

1 CHICA contracts are hybrid contracts with contingencies and acceleration clauses

Demonstrate 

capacity to 

implement

▪ Demonstrate capacity to implement reconstruction capex, STIP, and CIP

▪ Clear implementation plans, with milestones and metrics monitoring progress of all fiscal measures and structural reforms

▪ Transformation office with stakeholder representation and clear ownership and leadership structures defined

Establish an 

efficient 

organization

▪ Transform HTA into an organization in which resources are aligned to critical objectives and scale appropriately to available 

resources and planned investments.

▪ Engage best resources efficiently to move HTA agenda forward in a fiscally sustainable manner.

Improve 

infrastructure 

towards new 

standards

▪ Focus infrastructure program on maintaining and improving existing road systems and mitigating congestion

▪ Implement data-driven process for project selection and prioritization based on asset condition, and safety

▪ Embrace best-in-class approaches for traffic reduction (see previous slides on traffic reduction (measure 11))

▪ Maximize deployment of federal funds and utilize toll credits to receive highest-possible federal share

Reach a 

sustainable debt 

structure

▪ Obtain a sustainable debt structure to allow for provision of services and realistic economic growth infrastructure

▪ Evaluate new funding structures used in other jurisdictions

Improve project 

delivery 

effectiveness

▪ Streamline project delivery and improve project times from planning to completion through better project management, 

innovative contracting (e.g., CHICA, ratings/bonuses), and contract structures (passing risk)

▪ Maintain compliance with FHWA MOU and demonstrate improved project performance management

▪ Improve internal controls and integrate lessons learned into ongoing and new projects

Sustain Financial 

Control Reform

▪ Establish a zero-based budget approach and develop the tools and culture required to sustain it

▪ Implement procurement process reform to improve timeliness, accountability, and cost-control

Strengthen 

partnership with 

federal agencies

▪ Maintain strong communication with FHWA & FTA, and move HTA forward towards full federal compliance

▪ Communicate Fiscal Plan to federal agencies and work together towards sustainable solutions

▪ Engage proactively with FHWA & FTA to re-position HTA’s as a first-class federal grantee and infrastructure developer

New HTA Fiscal Plan 92

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 93 of 116
Transformation Plan Lead

Steering Committee

Focus Areas

The Steering Committee is ultimately responsible for the project, 

which includes validating objectives, facilitating resources,

approving designs and making all final decisions and includes HTA

and FOMB representatives.

Transformation Plan Lead serves as the main contactto

facilitate scheduling, project support andcommunication, 

approved by the FOMB.

The Work Team is 

responsible for the dayto-day activities of the 

project, including 

analyses, delivery of work 

products, communication 

ofproject status and 

coordination of meetings 

with the Steering

Committee.

Governance / 

Management

Privatization/ 

Concessions

Debt Adjustment TollRevenues

1 2 3 4

TransitRevenues Construction / 

Capex

Operations / 

Contract re-bidding

Detailed Workforce

Transition Plan

6 7 8 9

OtherRevenues

5

PMO Work Team

Structure

Revenues

Expenses

PMO Principles: HTA has established a PMO with the required organization and processesto

implement the fiscal measures, initiatives and the reforms proposed within this plan.

prioritized.

PMO goals are aligned PMO has visibilityand

with HTA strategic credibility by

objectives and that participating in all

projects are correctly decision making forums

(HTA and Central 

Government)

Strategy: Governance: Risk and Audit:

PMO identifies risks, 

their probability and 

implications through 

validated procedures 

while ensuring quality 

and adherence to HTA 

as well as with Central 

government key 

strategies

Monitoring and

Transformation Implementation Structure

Organizing for Results

Reporting:

PMO implements 

effective and 

comprehensive 

oversight and monitoring 

through adequate 

performance metrics, to 

the correct audience in 

the needed timeframe

New HTA Fiscal Plan 93

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 94 of 116
– Initiatives and steps ofprogression

– Timeline of implementation and 

expected goals for Fiscal Measures

– High-level milestones

March

2018

April

2018

2019 +

Fiscal Plan Submitted

▪ Detailed Fiscal Plan consisting of:

Maintain Momentum

▪ Realize results to build-in 

additional internal and external 

stakeholder buy-in critical for 

sustained change

– Hire professional search firm

– Commence recruitment of 

SME board members

Board Structure Changes

▪ Begin transition to new HTA board 

guiding transformation efforts:

May-June 

2018

– Outsourcing

– Workforce Transition

– Concessions

Begin Transformational 

Changes

▪ Detailed implementation plans 

for all measures

▪ Begin major initiatives, including

FY 

2019

Begin Receiving Majority of 

Expected Benefits

Pursue additional savings

opportunities and begin 

reporting to FOMB

Summary Timeline

New HTA Fiscal Plan 94

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 95 of 116
Fiscal impact

Activities / milestones

▪ Conduct board member training

▪ Identify potential candidates and select new members

▪ Outline priorities for the next 5 years

▪ Develop board strategy and vision

▪ Assess board effectiveness

Board development

Board member recruitment

▪ Engage search firm and outline requirements

Jan. 1, 2019 (Strategic Plan)

Jul. 1, 2019

6 month 

activities report

Sept. 1, 2018 (Board member selected)

Implementation Milestone XX Fiscal impact

Board establishment implementation

Establish Board of Directors – implementation plan

1 $0.5M in costs effective from FY19 onwards. 6-year impact of $2,5M.

2018 2019

Apr MayJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJun Jul Aug Sep Oct Nov Dec

($3M)

New HTA Fiscal Plan 95

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 96 of 116
Activities / milestones

Track performance

▪ Develop performance management information system

Fiscal impact

▪ Conduct performance dialogues

▪ Contractors (monthly)

▪ Employees (semi-annual)

Develop systems 

▪ Set cadence for measurement, reporting and review

▪ Establish rewards and consequences (e.g., employee 

performance incentives, contractor penalties)

▪ Establish baseline and targets for remaining metrics 

▪ Implement rewards and consequence

Establish targets and incentives

▪ Develop integrated traffic management reporting system

▪ Develop performance management dashboard

Sept. 1, 2018, demonstrate 

system capabilities

June 1, 2018, structured metrics/incentives reported

Organizational KPIs implementation

Rollout organizational KPIs – implementation plan

Apr May Jun Jul Aug Sep Oct Nov Dec

Implementation Milestone XX Fiscal impact

Not evaluated

New HTA Fiscal Plan

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 97 of 116
Fiscal impact

Activities / milestones

▪ Rollout routes and monitor performance

▪ Rollout new toll rates

Execution

▪ Update toll systems

▪ Review rates and obtain necessary approvals

Communications

Planning Jan. 2019, produce report on implementation 

plan to FOMB on toll rate increase

Tolling implementation

Increase toll rates – implementation plan

Implementation Milestone XX Fiscal impact

$77M 

1 Increases to take place every effective from FY18 onwards (linked to CPI). Total 6-year impact of $77M.

2018 2019

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

New HTA Fiscal Plan 97

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 98 of 116
Produce report in conjunction with FY 2019 

budget on discretionary funds identified

Include process improvements to achieve

better success from applications in report

▪ Prepare and submit grant applications

▪ Proposal presentation / follow-up on clarifications

Activities / milestones

Identify opportunities

▪ Develop interventions to address gaps

▪ Review grant selection criteria, key success factors

Submit application

▪ Identify gaps in existing application process

Enhance process 

Fiscal impact

▪ Match projects with specific discretionary funds

Discretionary funds implementation

Increase federal discretionary funds – implementation plan

Implementation Milestone XX Fiscal impact

Apr May Jun Jul Aug Sep Oct Nov Dec

$52M1

1 $4M in FY19, $8M in FY20, $11M in FY21 and $15M in FY22 onwards. $52M over the next 6 years.

New HTA Fiscal Plan 98

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 99 of 116
▪ Map void transactions

Improve void accountability

▪ Define void transactions

Activities / milestones

Fiscal impact

Violation avoidance

▪ Improve ORT hardware and software

▪ Improve TAG and license plate data

▪ Aggregate AutoExpresso and license plate data

Web Maria

▪ Create automatic registration functionality

Toll operator improvement

ORT conversion

▪ Enhance monitoring, reporting and service

ORT system enhancement

▪ Upgrade toll system

Toll optimization implementation

Toll optimization – implementation plan

Implementation Milestone XX Fiscal impact

2018 2019

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1 Declining impact due to one-off Web Maria impact in FY18 ($3.5M). Run-rate of $6.3M in FY23, with total 6-year impact of $14.1M.

$14M 

New HTA Fiscal Plan 99

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 100 of 116
▪ Benchmark and establish rates for ancillary services

Identify opportunities

▪ Identify physical locations for ancillary opportunities

Develop value proposition 

▪ Develop physical infrastructure 

▪ (e.g., retail space, billboards, parking)

▪ Develop and launch RFP

Activities / milestones

▪ Evaluate and shortlist vendors

▪ Identify and develop physical facilities 

(e.g., retail space, park and ride facilities)

Award concessions

▪ Negotiate terms and conditions / award concession

Fiscal impact

▪ Seek any necessary federal waivers or exemptions

(e.g., rest stop commercialization, broadband)

Provide report in conjunction with budget

Submission that identifies projects in progress

Ancillary revenue implementation

Capture ancillary revenue – implementation plan

Implementation Milestone XX Fiscal impact

Apr May Jun Jul Aug Sep Oct Nov Dec

$11M 

New HTA Fiscal Plan 100

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 101 of 116
Capital expenditure optimization - implementation plan

▪ Review projects to classify based on segment

Improve project delivery 

Activities / milestones

Reduce redundancies in soft costs

▪ Scale tools that have proven successful 

▪ Set achievable standards based on fund availability

▪ Prioritize to maximize socio-economic impact

Total impact on baseline

▪ Develop toolkit to maximize efficiencies

▪ Identify clear method to reach soft cost targets

▪ Train & ensure adherence for relevant personnel

▪ Eliminate redundancies in outsourcing/employment

▪ Ongoing iteration on projects priorities

▪ Review impact of each tool based on data and iterate

▪ Pilot new tools like contractor rating system

Optimize project portfolio through prioritization

▪ Develop and distribute procedures / protocols

▪ Renew ambitious targets to further reduce

Implementation Milestone XX Fiscal impact

2018 2019

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Capex optimization implementation

$116M 

New HTA Fiscal Plan 101

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 102 of 116
Right-sizing, early exits, outsourcing, and pensions - implementation plan

▪ Program costs from payouts conclude

Early Termination Program

▪ Model to ensure projections meet goals

Pensions

Activities / milestones

▪ Modify transition program to reach CW 15% target

▪ Iterate on packages to meet cost reduction targets

▪ Minimize outsourcing cost to maximize impact

▪ Develop conservative transition terms

▪ Payout related to the Law 211 incentive

Other right-sizing

▪ Reduction in pension contributions as per CW plan

▪ Pilot transition terms to project opt-in

Law 211

Total impact on baseline

▪ Deploy transition program agency-wide

▪ Identify additional right-sizing to be leaner

Implementation Milestone XX Fiscal impact

Right-sizing implementation 

2018 2019 2020 2021 

Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug

$98M 

New HTA Fiscal Plan 102

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 103 of 116
Operating contract re-bidding and optimization

▪ Develop targets for each contract

Total impact on baseline

▪ Refine bidding and contracting processes

▪ Re-bid/negotiate long term contracts

▪ Re-bid/negotiate current and expiring contracts

▪ Publicize list of contracts to be re-bid

▪ Notify current contract parties 

▪ Develop standardized contract terms 

to ensure uniformity

Submit list of contracts and targeted values to FOMB along with budget submission,

and receive approval from FOMB to utilize Title III processes to terminate contracts 

Re-bidding contracts

▪ Develop new contracting processes

Stabilize contracting environment

Submit new more competitive processes along with budget submission 

Activities / milestones

▪ Publicize new processes

Implementation Milestone XX Fiscal impact

Operating contract re-bid

2018 2019

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$39M 

New HTA Fiscal Plan 103

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 104 of 116
▪ Implement DTLs on PR-52

Fiscal impact

Activities / milestones

Operationalize DTL and viaducts

▪ Operationalize bus operations

▪ Approve bus pricing schedule

▪ Repurpose bus fleet and modify 

bus contract

▪ Complete BRT Lanes

Operationalize BRT

▪ Construction of viaducts and San Antonio

tunnel

▪ Implement DTL on viaducts

Traffic Reduction implementation

Traffic Reduction – implementation plan

2018 2019 2020

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Implementation Milestone XX Fiscal impact

1 Cost of $0.4M in FY21 and $0.8M in FY22 onwards. Total 6-year impact of ($2.0M)

$13M 

New HTA Fiscal Plan 104

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 105 of 116
▪ Approach potential concessionaires 

Produce report on concession 

opportunities to be approved by FOMB

Engage FOMB to assist in negotiations to maximize value

▪ Define goals and bargaining power to 

renegotiate contracts successfully

▪ Define scope of opportunities to be examined

Fiscal impact

▪ Understand opportunity for contract 

renegotiation on existing concessions

▪ Approach for negotiations and negotiate

▪ Engage experts to study opportunities

Activities / milestones

Identify other concession opportunities

Optimize current concessions

Concession

Concessions – implementation plan

2018 2019 2020

Apr MayJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJun Jul Aug Sep Oct Nov Dec

Implementation Milestone XX Fiscal impact

1 Cost of $0.4M in FY21 and $0.8M in FY22 onwards. Total 6-year impact of ($2.0M)

($5M) 

New HTA Fiscal Plan 105

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 106 of 116
Post-certification reporting 

Financial Reporting

Post-certification reporting requirements (to begin within 90 days of Fiscal Plan Certification approval)1

Report type Detail FOMB reporting cadence

▪ Refine high-level implementation plans for 

measures and submit within three months

▪ Track planned vs. actual expenditure / savings on 

fiscal measures

▪ Final implementation plans 

to be submitted three months 

post certification

▪ Monthly post-certification

Initiatives

Public reporting

▪ 13-week cash flow report including:

▪ Accounts payable and accounts receivable rollforwards 

▪ 12 common weeks analysis to track material 

changes

Liquidity ▪ Monthly post-certification ▪ Monthly post-certification

▪ Tracking budgeted to actual cash flow per 

budget certification agreements with FOMB 

package, including:

▪ Explanation for material variances (>10% and 

>$1 million or >$10 million)

▪ Material delays (>1 quarter) in project planning 

and delivery cost allocations based on STIP/CIP 

implementation schedule

▪ Revenues and additional funding procured in 

excess (>10%) of budgeted amounts 

▪ Monthly reporting of 

headline inflows and 

outflows including 

variances, delivery delays, 

and additional funding 

Budget to actuals ▪ Monthly reporting of 

headline inflows and 

outflows including 

variances, delivery delays, 

and additional funding 

▪ Monthly post-certification

1 Implementation plan development and progress towards the post-certification reporting requirements 

will be supervised and monitored by the FOMB.

New HTA Fiscal Plan 106

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 107 of 116
Post-certification reporting 

Governance, revenues, and expenses

Post-certification reporting requirements (to begin within 90 days of Fiscal Plan Certification approval)2

Detail (refer to initial implementation plans1 Report type ) FOMB reporting cadence Public reporting

Governance and 

performance 

management

▪ Identify elements of corporate governance report 

e.g., compensation, articles of association, board 

meetings, and set reporting cadence

▪ Develop metrics, targets, and incentives system 

for organization wide KPIs

▪ Develop system to track and enforce metrics

▪ Monthly reporting of KPIs

▪ Bi-Annual reporting of 

corporate governance

Revenues ▪ Identify project list and targeted amount and 

source of discretionary funds for each

▪ Identify sources and timing of ancillary revenue 

opportunities 

▪ Finalize schedule of rates and corresponding 

revenue projections for toll increases

▪ Develop monthly revenue DTL and viaduct targets 

by toll lane / viaduct

▪ Monthly reporting on toll 

collections

▪ Quarterly reporting on 

discretionary funding and 

ancillary revenues

Operating 

expenses and 

capital expenses

▪ Develop monthly targets for capex savings by 

lever, line item and project (where possible)

▪ Translate annual rightsizing measures into 

monthly targets by division

▪ Track contract costs post-bid against targets

▪ Outline concession evaluation report 

requirements and review prior to public 

disclosure

▪ Monthly reporting on capex 

and rightsizing

▪ Reporting on contract re-bid 

savings as and when relevant

▪ One-off reporting on 

concession evaluation

▪ Quarterly reporting of KPIs

▪ Bi-Annual reporting of 

corporate governance

▪ Quarterly reporting of toll 

collections, discretionary 

funding and ancillary revenues

▪ Quarterly reporting of capex 

and rightsizing 

▪ Reporting on contract re-bid 

savings as and when relevant

▪ One-off reporting on 

concession evaluation

1 Implementation plans are high-level and meant to be refined, finalized and submitted to FOMB within 2 months of certification

2 Implementation plan development and progress towards the post-certification reporting requirements 

will be supervised and monitored by the FOMB.

New HTA Fiscal Plan 107

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 108 of 116
APPENDIX: FHWA MOU

New HTA Fiscal Plan 108

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 109 of 116
HTA’s current operational situation and MOU Objectives

Following years of operational and organizational challenges to effectively and efficiently deploy federal funds in 

compliance for with Federal requirements, PRTHA and FHWA signed a Memorandum of Understanding1 on 

February 29, 2016 geared at revamping PRTHA’s Project and Program Delivery capabilities.

PRHTA Challenges MOU between PRHTA and FHWA

▪ More than $400 million in available funding is

not deployed due to delayed processes for

project advancement, project completion and

provider payments

▪ Outdated and non-standard documentation

and requirements

▪ Lack of communication and feedback

integration between planning and

construction departments

▪ Increased project costs and overruns from

original budgets

▪ Misalignment of current capabilities with 

needed core competencies

▪ Establishes procedures, systems and project

delivery objectives for the Puerto Rico

Highway Program

▪ Identifies roles , responsibilities and actions

for the PRHTA and the FHWA to accelerate the

funding, planning, design and construction of

various highway, bridge and transportation

improvement projects

▪ Improves the economic vitality of the

▪ Government of Puerto Rico and serves as a 

catalyst for sustainable job growth associated 

with highway construction in Puerto Rico

1 MOU signed by the government of Puerto Rico and Federal Highway Administration

SOURCE: Signed Memorandum of Understanding MOU-PR2016-02-29-094734

New HTA Fiscal Plan 109

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 110 of 116
MOU requirements and currents status of initiatives

Toll Credits

Organizational 

Capacity 

Development

Expediting 

Project 

Delivery

Description Status

▪ Revise and submitto FHWA its billing process to ensure prompt payment to contractors as

follow:

— Paying all contractors byEFT

— Paying all contractorswithin 40 days of receipt of invoices

— Tracking status of payments using electronic method acceptable to FHWA

— Paying all contractorson the first business day after funds are received from FHWA

▪ Validate that PRHTA’s existing toll credit balance complies with current FHWA guidance (the current 

guidance at the time of execution of this Agreement is “Interim Guidance- Toll Credit for non-federal 

Share, Nov 20, 2015)

▪ Identify that amount of toll credits available for use by PRHTA, and

▪ Identify modificationsthat PRHTA must make to its processes for approving,tracking and 

reconciling toll creditusage

▪ Contractthe services of a management consultantto assist the PRHTA to review and develop 

recommendationsfor streamline the PRHTA’s project billing process, project delivery process, 

contracts standard language, training program, SOP’s and applicable commonwealth laws or 

regulation.

▪ Procure services to improve systemssuch as email communication, electronic project monitoring system, 

improvements to financial billing system in order to reduce the PRHTA’s obligated but unexpected

balances.

▪ Submit to the FHWA a report identifying the reasons for the delay of every project that the PRHTA has 

obligated, but for which less than 5% of funds have been expended since the date a recorded obligation

existed

▪ Develop and Submit to the FHWA a schedule with milestones to accelerate obligation of its annual

Federal-aid allocation to ensure all funds are properly obligated before redistribution of Federal-aid 

obligationlimitation

Completed on Q2 2016.Tracking 

status of payments will be 

upgraded with E-Business Suite and 

Program Management Information 

System(PMIS)

Notice to Proceed (NTP) providedon 

3/2017

Consultant is conductingassessment 

and is expected to complete the 

recommendations by Q22018.

The email migration was completedin 

2/2017. Improvements of email 

communications was completed in July

2017.

PMIS is on schedule with a go livedate for 

core functionality Phases 1&2 to be 

completed Q2 2018.E-bidding and 

contract management will be complete in 

Q1 2019.

E-Business Suite implementation 

Consultant has been awarded and 

expected NTP 3/2018.

Initiative

Federal Aid 

Billing 

Procedures

In Q1 2016 PRHTA validated 

compliancewith FHWA guidance 

and identified the amount of toll 

credits available. The tracking 

status of toll credits will be 

upgraded with PMIS.

Not Started In Process Completed

SOURCE: Signed Memorandum of Understanding MOU- PR2016-02-29-094734

New HTA Fiscal Plan 110

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 111 of 116
MOU initiatives encompass all elements needed to create an effective 

organization

Source: Signed Memorandum of Understanding MOU-PR2016-02-29-094734

Federal Aid BillingProcedures Toll Credits Organizational Capacity Development 

(LEAN) Expediting ProjectDelivery

▪ Develop an efficient billing 

process with specific goalsto 

ensure on-time payment to 

contractors

▪ Ensure best practices and 

guarantee financial accuracyand 

consistency

▪ Identify improvements forthe 

approval, tracking and 

reconciling of toll creditusage

▪ Implement a LEAN Project delivery and 

billing process that will result in higher 

quality projects, fasterproject 

completion and more efficient 

delivery

▪ Establish processes to provide 

continuous visibility to under 

performance projects andallow 

for effective development of 

action plans

▪ Develop capacity analysis to 

correctly size the needed 

organization to support theprocess

▪ Establish measurable goalstied to 

the development of the agency’s 

goals and objectives

▪ Tracking the status ofpayments

▪ with electronic methods

▪ Establish measurable performance 

levels and KPI’s to improveprocess 

visibility and track whether projects 

are achieving targets

▪ Develop an effective method for 

capturing voice of the client to 

support performancemeasurement 

and strategic decisionmaking

▪ Establish critical KPI’s that 

are essential for auditing 

and validating compliance 

with FHWAguidance

▪ Promote collaborativeculture

▪ and communication

▪ Establish agenda forworkshops 

and trainings to develop core 

competencies and deliver 

business value

▪ Implementation of systemsfor 

email and electronic 

monitoring to increase visibility 

and communication between

areas

▪ Train personnel on toll

audit process to ensure

compliance

Processes

Organization

Infrastructure

Culture

New HTA Fiscal Plan 111

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 112 of 116
APPENDIX: Summary Fiscal Plan Bridges to July 2017

New HTA Fiscal Plan 112

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 113 of 116
Fiscal Plan Bridge, July 2017 to Current: Summary

Delta between July 2017 Fiscal Plan Update and March 2018 Fiscal Plan Update, $ in millions

533

1,221

279 369

-87

142

1,080

139

113

75

533

Retained 

Revenues

Construction 

Support

Opex April FP 

Surplus

July FP 

Deficit

Construction 

Expense

Construction 

Revenue

Operating 

Revenue

Fiscal Plan 

Measures

Tax and Fee 

Revenue

Central Govt. 

Transfer

See next slide for details on 

CIP changes since July

See final slide for details on fiscal 

measure changes since July

New HTA Fiscal Plan

Negative contribution

Positive contribution

113

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 114 of 116
Fiscal Plan Bridge, July 2017 to Current: Detail, Capital Program

48

Total 

Government 

Contribution

CIP-Transit

20

481

496

CIP-Hard Costs

643

69

Contruction 

Local

Right of Way

50

CIP-Soft Costs

17

227

1

Design Local 

Emergency 

Repair Program

April Capital 

Deficit

July Capital 

Deficit

Delta between July 2017 Fiscal Plan Update and March 2018 Fiscal Plan Update, in $ millions

New HTA Fiscal Plan

Negative contribution

Positive contribution

114

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 115 of 116
Fiscal Plan Bridge, July 2017 to Current: Detail, Fiscal Measures

116

77

52

413

274

22

84

Others Increase tolls Discretionary funding 1July Fiscal Measures Rightsizing CIP optimization April Fiscal measures

Delta between July 2017 and March 2018 Fiscal Measures, $ in millions

The majority of the increase in fiscal measures since July is driven by CIP optimization, increased tolls and discretionary funding, while there has been a decrease in 

the original size of the rightsizing measure.

1 Early exits, contract re-bid, toll optimization, traffic reduction, ancillary revenue, pensions and concessions

Negative contribution

Positive contribution

New HTA Fiscal Plan 115

Case:17-03283-LTS Doc#:3126-30 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit PRHTA Certified Fiscal Plan (2018) Page 116 of 116