WHY PUERTO RICO HAS A UNIQUE POSITION IN THE OPPORTUNITY ZONE SPACE
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NOW IS THE TIME TO GET IN ON THE ISLAND ’ S REDEVELOPMENT
Puerto Rico is on an upward trajectory and primed for accelerated growth . Techies , entrepreneurs , and economic development professionals in Puerto Rico are bullish on the island ’ s short-term and long-term prospects for several reasons . One is the well-funded post-crisis effort to transform Puerto Rico into an island of innovation by rebuilding an efficient and resilient energy grid and tech infrastructure as evidenced by the privatization of the electric transmission and distribution system .
One is the well-funded post-crisis effort to transform Puerto Rico into an island of innovation by rebuilding an efficient and resilient energy grid and tech infrastructure
Since 2017 , Puerto Rico has experienced Hurricanes Irma and Maria , a 6.4-magnitude earthquake and the COVID-19 pandemic . In response , Congress has appropriated $ 63.7 billion for recovery efforts in Puerto Rico , of which approximately $ 39.5 billion is committed by federal agencies for distribution , leaving flexibility for nearly 40 % of the funding . So far only about $ 17.8 billion has been dispersed . 3
That level of commitment means there will be no shortage of capital investment in the coming years , and many expect the pace of distribution to increase under a new administration . For the foreseeable future , there is going to be a steady flow of investment , construction and development on the island . There is opportunity still for early entry into a recovering market with momentum that should appeal to potential Opportunity Zone funders . That ’ s not to suggest other federal funding can be paired with Opportunity Zone funds , but the fact that it is allocated eliminates some of the guessing game and risk as to how the overall market shapes up .
WATCH BIG PHARMA – RESHORING TALKS ARE STRENGTHENING THE PROSPECTS
The biosciences sector and companies comprise one of the island ’ s core strengths . Puerto Rico leads the United States in pharmaceutical exports and 12 of the world ’ s top 20
pharmaceutical companies have operations on the island as do seven of the top 10 medical device companies . 4 That is a big multinational corporate presence with a decades-long legacy of investment that continues today .
Three 2019 expansion projects alone account for $ 180 million in expected investment from global players in the industry -- Medtronic ’ s $ 50 million , Boehringer Ingelheim ’ s $ 50 million , and Romark Global Pharma ’ s $ 80 million . 5 , 6 , 7 In 2020 , contact lens manufacturer CooperVision announced a $ 150 million investment on the island and global pharmaceutical and health product manufacturer , GlaxoSmithKline , moved its production from Pennsylvania to Puerto Rico . 8 , 9
As development continues , the island is better positioned to get prospects placed faster than any other area in the United States . More than 50 greenfield , existing and repurposed facilities are actively being shown to interested parties , with fast-tracked FDA approval on standby for pharmaceutical and medical device manufacturing companies .
That fact makes Puerto Rico a logical choice as the federal government looks to bolster its health care and medical supply chain post COVID-19 and takes steps to reduce its reliance on foreign nations . Some 90 % of ingredients used in generic drugs are made in China and that is not likely to persist after the pandemic . 10 With so much bioscience manufacturing and R & D infrastructure in place , Puerto Rico is a natural place for the federal government to pivot once it starts applying the supply chain lessons of the pandemic .
OPPORTUNITYZONE . COM