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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
13-R-0413
September 23, 2013
Why We Did This Review
The U.S. Environmental
Protection Agency (EPA),
Office of Inspector General
(OIG), conducts site visits of
American Recovery and
Reinvestment Act of 2009
clean water and drinking water
projects. The purpose of this
unannounced site visit was to
determine whether the recipient
of funds complied with selected
requirements of the Recovery
Act and Drinking Water State
Revolving Fund (DWSRF)
program.
The Puerto Rico Aqueduct and
Sewer Authority (PRASA)
received $19.5 million in
Recovery Act funds from the
Puerto Rico Infrastructure
Finance Authority under the
DWSRF program administered
by the Puerto Rico Department
of Health (PRDOH). The Yauco
- La Jurada Community
Distribution System project
received $1,385,000 in
Recovery Act funds through a
DWSRF loan.
American Recovery and Reinvestment Act
Site Visit of Yauco - La Jurada Community
Distribution System, Yauco, Puerto Rico
What We Found
We conducted an unannounced site visit to the Recovery Act-funded project of
the Yauco - La Jurada Community Distribution System in Yauco, Puerto Rico,
in August 2010. The project consisted of furnishing and installing new water
distribution lines, constructing two distribution tanks, and installing house service
connections. We toured the project site, interviewed personnel from PRASA and
the PRDOH, as well as the prime contactor's manager and employees, and
reviewed documentation related to Recovery Act requirements.
Based on our site visit, no issues or concerns came to our attention that would
require action from the Commonwealth of Puerto Rico, PRDOH, PRASA or EPA.
The prime contractor did not provide sufficient documentation to confirm payment
of wages to its employees. According to PRASA, the prime contractor went out of
business before completing the project. The project was ultimately completed by
the prime contractor's insurers. PRASA experienced significant delays in
acquiring documentation to support the review as a result of the prime
contractor's demise.
According to PRASA, having a prime contractor going out of business before it
completes a project is a rare and isolated event. With PRASA's assistance, we
received adequate documentation to support compliance with the requirements
of the Recovery Act.
This report addresses the
following EPA theme:
• Protecting water: A precious,
limited resource.
For further information,
contact our public affairs office
at (202) 566-2391.
The full report is at:
www.epa.qov/oiq/reports/2013/
20130923-13-R-0413.pdf

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