Second in a series ahead of the AGC-PR Convention
AGC-PR President Ismael Sánchez says three items will dominate his association’s conversation with government agencies when Puerto Rico’s general contractors gather next week: pushing federally funded reconstruction projects from allocation to actual construction, a plan to consolidate up to seven of the Aqueduct and Sewer Authority’s filtration plants into a single large-scale facility, and a slate of transportation, port and airport projects moving through the pipeline.
“These funds are not recurring. They must move from allocation to actual projects that strengthen infrastructure and generate economic activity,” Sánchez said of the federal reconstruction money, which he identified as the convention’s central objective to accelerate.
Among the projects Sánchez expects to be discussed is a significant water-sector initiative at AAA: consolidating five to seven filtration plants into one large-scale treatment facility.
“It’s an incredible project,” he said, describing it as one of the agency’s most ambitious undertakings. AAA currently operates 113 filtration plants islandwide, several of which have required emergency repairs or gone offline entirely in the past year, making a consolidation of this scale a meaningful departure from the agency’s historically fragmented plant-by-plant rehabilitation approach.
The Ports Authority, for its part, is preparing multiple projects, including the revitalization of the Vieques airport complete with a new park, and a major upgrade to the fire suppression system at the Port of Puerto Nuevo, which will require new pumping infrastructure and pipelines.
Work also continues on the rehabilitation of the Aguadilla airport, part of a broader FAA-backed round of improvements that has separately funded runway and drainage work at Aguadilla, Ponce, Ceiba and Vieques.
In transportation, Sánchez said roadwork remains active across the island, while in the energy sector project details remain less consistent. He said the regulator has signaled upcoming work on transformer upgrades and immediate-generation improvements, but those plans have not yet been confirmed by LUMA, the subrecipient responsible for execution.
Where these fit on the convention agenda
That full slate of projects will run through the executive conference “Hablemos de Construcción: Retos, reformas y oportunidades” on Sept. 11, which brings together representatives from AAA, COR3, the Infrastructure Financing Authority (AFI), municipalities, the energy sector, the Ports Authority, the U.S. Army Corps of Engineers and the Department of Housing. Sánchez said the sessions are designed to give contractors direct visibility into upcoming capital improvement programs and timelines, essentially a public accounting of which agencies control the specific chokepoints between assigned federal funds and dollars actually moving into projects.
The session is the centerpiece of AGC-PR’s 52nd Annual Convention and Expo Construcción, scheduled for Sept. 9 through 13 at El Conquistador Resort in Fajardo.
Caribbean Business reported last week that the industry arrives measurably healthier than a decade ago, but still recovering roughly 57% of the workforce it had at its 2004 peak, and still leaning heavily on that finite tranche of federal reconstruction money.
The convention is expected to draw more than 1,000 attendees, making it the largest gathering of the construction industry on the island. Sánchez said the turnout reflects both confidence and urgency within a sector that continues to navigate a delicate balance between incremental growth and signs of deceleration.
“Growth is happening, but it’s very slight,” Sánchez said, cautioning that recent employment and cement production data should be read carefully. The industry reported 39,900 jobs in July 2026, and cement production and sales both showed year-over-year increases. But monthly comparisons can mislead, he said.
“If you compare July to July, you see an increase, but that’s partly because the month had more working days. When you look at the full year, there’s a decrease,” he explained, adding that producers such as CEMEX are operating at roughly half their installed capacity, a level broadly consistent with the gap between the company’s publicly stated production capacity and Puerto Rico’s annual cement demand.
Despite the mixed signals, Sánchez said the industry’s outlook remains strong. “We are a robust industry with over 300 member companies and about 40,000 construction workers. There is work, and people are confident,” he said, adding that FEMA-funded reconstruction and private investment have kept contractors fully engaged.
An award, and a broader program
The convention will also honor engineer Humberto H. Reynolds with the Alejandro S. Herrero Award, the highest distinction in Puerto Rico’s construction sector, established in 1973 in memory of the AGC-PR founding partner it is named for. Reynolds, originally from Panama, has worked on more than 350 projects on the island.
“He’s an exceptional person, always willing to help, always available. He’s a consummate professional, admired by his colleagues and employees,” Sánchez said.
Beyond the technical sessions and the Expo Construcción exhibition, the program includes a golf tournament benefiting engineering students, a welcome cocktail and silent auction, seminars, a family activity and the annual gala.
Sánchez said the industry’s long-term stability will depend on structural reforms, particularly in permitting, taxation and inventory management. He called the permitting overhaul “the most important reform,” arguing the current system “does not work” and requires a complete redesign, a critique that echoes the Financial Oversight and Management Board’s own recent push for a unified Planning and Permitting Code.
He also pointed to the inventory tax as a barrier to maintaining adequate supplies of construction materials, which delays projects and increases costs.
“We need to ensure that once infrastructure is built, it receives the maintenance it needs,” he added. “Otherwise, we end up in the same situation again in seven or ten years.”
With agencies preparing to outline new projects and contractors eager to secure work, Sánchez said the convention aims to serve as a catalyst for the next phase of Puerto Rico’s reconstruction and economic development.
“We are willing and able to continue contributing to Puerto Rico’s rebuilding,” he concluded.
