The permitting process has been, since the 1970s, one of the most lagging areas that directly impacts the engine of economic and social development in Puerto Rico. In that context, the action the government is taking in recognition of the need to implement, once and for all, a renewal of the government permitting process is a wise step. The group appointed by Governor Jenniffer González to evaluate the situation concluded that amendments to the Permit Process Reform Act (Act 161 of 2009) are necessary.
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This has also been pointed out by various sectors, including the construction and telecommunications industries, among others, who have expressed their concerns in round tables and public interest forums.
This legislation, in its beginnings, had commendable objectives. Sixteen years ago, there was already talk of the need for transparency, explicit regulations, proactive communication and reducing bureaucracy. The creation of a customer service unit was proposed to support private enterprise and integrate the citizen into government decisions. As a concrete remedy, the need to professionalize the employees who handle these procedures, increase the quality of information, move towards digitalization and the use of technology, and create a bank of services was proposed.
Today, the Permits Management Office (OGPe) of the Department of Economic Development and Commerce processes the necessary authorizations for the development, use of land and operation of businesses on the island. The municipalities also play an important part in this vital task.
Despite countless complaints, we are facing an unfair standardization of grueling deadlines. Obtaining authorization for a water connection or the green light to install a sewer system, among other procedures, can take six months or more. Although there have been advances in residential renewable interconnections, the privatization of the electric power system has not accelerated the authorizations to obtain electricity, essential from day one in any construction or simple move to one facility or another. In Old San Juan, it is already legendary how long the Institute of Puerto Rican Culture takes to issue its permits. And what can we say about environmental permits, which often seem to be a dark swamp.
Another common denominator throughout the island is the fear that entrepreneurs feel before the word “review”, since that second or third step plunges them into an eternal waiting line. “Review” has become synonymous with resignation. Completing the procedural anxieties, the set of rules, particular requirements, often different, in the 78 towns.
A better permit system must take into account the reality of the country, where some 58,000 companies operate, 95% of which have limited operations, with less than five employees. These characteristics lead to a lack of personnel exclusively in charge of processing permits to comply with the State’s requirements.
A tangled legislation that requires dealing with the OGPe or a municipality implies an obstacle for those who require permits in the construction world, ranging from modest remodeling to the installation of industrial plants. This ocean of regulations has given way to managers who navigate these waters and, in certain cases, take advantage of legal loopholes to gain an advantage over those who aspire to comply correctly with the rules.
Every economy in the world has simplified its permitting processes as a primary goal, as has been attempted here with OGPe’s Single Business Portal. However, we are still only halfway there. Digitization of most permitting processes is an issue already solved in many countries. This saves time and avoids tedious queuing at public offices. In contrast, the private sector, particularly the banking sector, is at a sidereal distance from the government in this area.
There is no need to think long and hard about what needs to be done. The objectives of the Permitting Process Reform Act are as valid today as they were yesterday: to facilitate economic development, restore confidence in planning agencies, provide certainty in the permitting process, and ensure sustainable development. To achieve this, there is no need to get complicated. It is a matter of promoting, hopefully with government perseverance, a change that all of Puerto Rico will deeply appreciate.
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This content was translated from Spanish to English using artificial intelligence and was reviewed by an editor before being published.
