Our International Airport, named after a 4-term governor who cemented Our colonial status with semantics, yet showed other political leaders that power is not really the end-all of politics, was privatized in a Public-Private Alliance (PPA) in July, barely a month ago.
And as it stands right now, that deal is costing Us about $1.08 billion, just up front. But that's just the tip of the reaming, as it will almost certainly cost Us almost twice that much every year for the next 40--FORTY, the Big 4-Oh--years.
Yes, We are being given a flying fuck. Details ahead, lacking any tinge of eroticism.
The winning bid--or more correctly, the chosen bid--features Grupo Aeroportuario del Sureste (ASUR), a Mexican-based firm as equal partners with Holdstar Capital IV, a New York-based investment firm, operating locally as Aerostar Airport Holdings. Their bid was for $669.4 million.
Now pause a second. Over a 40 year lease, that bid basically represents "rent". Right? Right. So that means that Aerostar is paying $16.74 million (rounding up) a year to take over the Luis Muñoz Marín Airport. Seems a trifle low, given the size and transport rate of the Airport...
But wait! The deal is actually paying $494.7 million in debt amortization, with $174.7 million in rent and "entry fee". So really, the Aerostar rent payment is $4.37 million (rounding up)...a year. For an international airport servicing 14 airlines and some 4.8 million passengers and thousands of metric tons of cargo a year.
How/Where/Why are We being fucked? Look again at the deal: $494.7 million in debt amortization. This would be good fiscal policy, paying down massive debt first, if the amount of money received was truly fair compensation for the value of the Airport.
Hint: It isn't. Not. Even. Close.
How much is the LMM Airport worth? According to economist José Antonio Herrero, an analysis in July 2012 of the current revenue stream generated yearly by the Airport puts the value at $1.752 billion. So the supposed $669.4 million "winning bid" is 39% of the current revenue stream, but looked at closely, what has happened is that Aerostar has locked down an airport generating $1.75 billion a year for $4.37 million.
"But, Jenius," some of you will say, "what about Aerostar's $494.7 million in debt amortization? That's cash money Uncle Sam greenback dollar bucks We get, right?"
Wrong. Amortization means that Aerostar assumes that amount of debt and agrees to pay it off over time. And where the fuck do you think they will get the money to pay off that debt schedule?
From an airport worth $1.75 billion a year, locked up for $4.37 million a year...for 40 fucking years.
What is going on here? The Larva's parasitic pack of parasitic thieves has cut a deal where some particularly toxic form of debt (toxic in the sense that some or many of them could be hauled into a court over it someday) is sanitized and the clean-up gang is set to really clean up for the next 40 years.
The Larva's parasitic horde doesn't give a flying fuck about the next 40 years; they don't even give a flying fuck about next year 'cause they know next year ain't happenin' for them. No, they care about using Our resources to finance their corruption and then lining up next year, as "civilians", to collect more fraud-generated monies by the opportunistic cabals they set up.
But in the meantime, the 40-year flying fuck We are getting has just begun.
The Jenius Has Spoken.
[Update: 31 August 2012: And they slip it in...]