By The Star Staff
Following a pilot program, the Puerto Rico Aqueduct and Sewer Authority (PRASA) will proceed this year with the installation of 1.5 million smart meters at a cost of $407 million and, separately, will borrow $333 million from the Department of Natural and Environmental Resources (DNER) to advance 23 water projects.
The information is detailed in recent documents sent to PRASA by the Financial Oversight and Management Board. One document authorized an amendment to the contract with Utility Metering Solutions, allowing for the full deployment of the smart meters. The amendment constitutes the third amendment to the master contract, signed in 2023, and will remain effective until Nov. 15, 2030.
The scope of work under the full deployment phase includes the integration of information software with PRASA’s information systems, network maintenance and support, provision of standard and customary documentation for all aspects of the system, on-site and in-person training, provision of advanced sensors and system capabilities, and specialized technical support and contract management services.
According to the information provided by PRASA, the work will be entirely funded by federal sources stemming from the Federal Emergency Management Agency and Community Development Block Grant-Mitigation Programs.
The original master contract was approved with conditions by the oversight board on Nov. 8, 2023 following a competitive procurement process initiated on Jan. 4, 2022 for the Advanced Metering Infrastructure (AMI) project.
The contract involves the acquisition of smart water meters, smart meter reading technology, and specialized services in connection with the smart meters to upgrade PRASA’s water meter infrastructure across the island. The project is divided into a pilot phase and a full deployment phase.
During the pilot phase, which included an evaluation period, the contractor was responsible for installing 1,000 smart meters for a maximum payable amount of $892,697.
Additionally, in a letter dated March 5 to DNER Secretary Waldemar Quiles Pérez, the oversight board gave the green light to a proposed agreement between, on one side, the DNER, as administrator of the Clean Water State Revolving Fund (CWSRF), and the Puerto Rico Infrastructure Financing Authority, as operating agent of the CWSRF, and, on the other side, PRASA.
The agreement outlines financial assistance for 23 projects that PRASA will implement. According to the DNER, the projects aim to address critical vulnerabilities in PRASA’s wastewater system that were exposed by Hurricane Fiona.
The DNER will loan PRASA the $333 million for the implementation of the projects, subject to principal forgiveness and 0% interest rate.