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The Puerto Rico government has extended AlixPartners’ controversial contract to advice the local power utility, Bloomberg News reported 15 August. The contract will go for an additional four months, with AlixPartners being paid $6.7 million. AlixPartners is advising the Puerto Rico Electric Power Authority on how to reduce its $9 billion in debt.

“AlixPartners will remain with Prepa [the utility] leading the restructuring process and ultimately secure a sustainable capital structure and long-term business plan,” Rodriguez said in the statement.

“It is important for Prepa to keep the continuity and forward movement of the process uninterrupted at this time.”

The contract will expire on 15 December, Harry Rodriguez, the president of the power utility’s board of directors, said in a statement. Managing Director Lisa Donahue will continue as chief restructuring officer of the utility.

AlixPartners have earned a total of approximately $43.5 million in its contracts with Prepa since September 2014, Rodriguez said. The consulting firm has helped the utility save around $202 million in savings and $212 million in cash relief.

Earlier this month, Primera Hora reported that Prepa was reviewing its contract with AlixPartners and determining whether or not to extend the contract.

autoridad de energia electrica puerto rico

Jax Jacobsen for Consultor.news

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