ncreased spending on public works in an election year is not unusual. But the current administration has been pumping billions into infrastructure projects over the course of its four-year term. This has succeeded in producing a moderate economic recovery, and at the same time providing a range of alternative investment incentives.

Lema Developers & Associates’ San Geronimo Caribe Project is a glowing example of the nation’s ongoing urban revitalization

Puerto Rico’s road system is already efficient, so the focus for new spending is elsewhere. “We are transferring our efforts to collective transportation, including industrial freight and passenger cargo,” says Fernando Fagundo, Secretary for Transport and Public Works. Two major projects under way are the Transhipment Port of the Americas and an air transfer center in Aguadilla. A highway will connect the two and could open the way for the development of added-value industries along the route, says the secretary.

There are plans to develop the U.S. naval station which closed at the end of March into several areas, including a science park, a harbor town with tourism facilities, and an eco-tourism reserve.

Another new program is the revitalization of the downtown areas in Puerto Rico’s cities. “We want to attract people and businesses, so we are fixing the physical facilities and offering contributive incentives to develop housing and commerce,” says Mr. Fagundo.

Arturo Madero is the president and managing partner of Lema Developers & Associates, a company which administrates construction projects. He still finds that obtaining permits can be a problem, although significant strides have been made in cutting through the red tape.

Lema has built more than 1,000 houses, and is engaged in a huge project which will include a 264-room hotel, villas, luxury apartments, and a massive entertainment center. Much of it has already been allocated. “Construction is a high-risk business, but it creates satisfaction, employment, and opportunities, says Mr. Madero.