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On Wednesday, Pacifico Group unveiled its latest “State of Reconstruction” report for the last quarter of 2024, indicating a minor uptick in the speed of projects since Hurricane Maria struck Puerto Rico in 2017.
The evaluation, which examines the advancement of projects backed by FEMA’s Public Assistance program, indicates substantial progress in the Reconstruction and Execution (IRE) and Construction and Compliance (ICON) metrics, but also brings to light structural challenges that still hinder effective project development.
The data collected during the transition from the third to the fourth quarters of 2024 shows slight yet consistent advancement at various reconstruction stages. While the planning phase saw a considerable drop of 8.83%, from 38.38% to 29.55%, this is encouraging as it signifies that projects are entering more advanced stages.
Nevertheless, this positive shift remains fraught with difficulties and suggests that market limitations persist. A deficiency of construction firms, a shortage of skilled workers, and bureaucratic intricacies hinder the swift transition from planning to physical execution, according to the report.
In the Design in Progress and Construction in Progress phases, the report observed increases of 2.45% and 4.23%, respectively, with construction in progress accounting for 21.50% of the total allocated funds. While this uptick signifies progress, it still reflects ongoing issues regarding the procurement of materials and resources.
A scarcity of specialized companies and delays in the bidding process continue to impede the transition of projects from the administrative phase to the execution phase, adversely affecting the speed of on-ground reconstruction.
Additionally, there was a recorded increase of 0.66% in the Completed phase, reaching only 5.29%, a figure that highlights the challenges encountered in the final stages of projects.
The closing and delivery phases of projects necessitate precise coordination, which is frequently compromised by a disjointed administrative structure and insufficient operational resources. The divide between planned and finalized projects serves as a reminder that while resources exist, the market remains beset by significant constraints affecting timely project completion.
