By The Star Staff
Pacifico Group on Wednesday presented its latest “State of Reconstruction” report for the fourth quarter of 2024, showing a small improvement in the pace of projects since Hurricane Maria hit Puerto Rico in 2017.
The analysis, which evaluates the progress of projects subsidized by FEMA’s Public Assistance program, shows significant improvement in the Reconstruction and Execution (IRE) and Construction and Compliance (ICON) indices but also highlights the structural challenges that still limit the effective development of projects.
During the transition between the third and fourth quarters of 2024, the data reflects slight but steady progress at various stages of reconstruction. Although the planning phase experienced a significant decrease of 8.83%, from 38.38% to 29.55%, it is positive as it indicates a move of projects into more advanced phases.
However, that positive transition remains challenging and suggests that market constraints continue to be a challenge. A shortage of construction companies, a lack of skilled labor, and administrative complexities limit the ability to move quickly from planning to physical execution, the report said.
In the Design in Progress and Construction in Progress phases, the report noted an increase of 2.45% and 4.23%, respectively, placing construction in progress at 21.50% of the total funds allocated. While this increase in construction represents progress, it still reflects persistent challenges in acquiring materials and resources.
A shortage of specialized companies and delays in the bidding process continue to slow the transition of projects from the administrative phase to the execution phase, directly impacting the pace of reconstruction on the ground.
In addition, an increase in the Completed phase of 0.66% was recorded, reaching just 5.29%, a number that is indicative of the obstacles in the final phase of projects.
Projects’ closing and delivery stages require precise coordination, which is often affected by the fragmented administrative structure and lack of operational resources. The gap between planned and completed projects is a reminder that even though resources are there, the market still faces critical constraints that affect the ability to complete projects on time.