Macquarie hired to advise Puerto Rico P3 agency - are they barred from bidding?

Puerto Rico's Public Private Partnerships Authority has hired Macquarie Capital to assist them developing a P3 program. Carlos M Garcia, chairman of the authority is quoted in the announcement as saying that private investment is needed to improve the island territory's infrastructure in high priority areas.

A toll bridge between the airport and downtown San Juan was an early PR concession.

"Specifically, Macquarie Capital will assist the Authority in formulating and developing program guidelines and procedures that include assistance in developing a desirability study methodology adequate for PPP projects and formulating public sector comparator methods. The Authority aims to develop a program that uses best practices from around the world in procurement and other key areas that will allow for the efficient establishment of Partnerships. The Authority believes Macquarie Capital’s unparalleled PPP capabilities are well suited to its program needs, given Macquarie Capital’s previous experience as advisors to other governments and public sector agencies in their development of similar PPP programs," the announcement says.

The appointment of Macquarie Capital as "Advisor" was apparently negotiated, not put up for competitive proposals.

Can they advise and participate too?

We asked Macquarie whether their employment as advisors to the PR state precludes the group and associated elements from participating in making or supporting P3 proposals in Puerto Rico from the private sector side.

This is new. They have usually been only on the private sector proposing side.

Can they have Macquarie Capital Advisors there in government offices, while Macquarie Infrastructure submits bids?

Would two different Macquarie 'black eyes' separated by "firewalls" be credible against media and political criticism? (This needs a cartoonist.)

After a day we haven't got an answer.

We just emailed the Authority the same question. We'll post any response here...

see http://www.macquarie.com/us/capital_advisers/index.htm

TOLLROADSnews 2009-09-25