Puerto Rico Approves USD 2 Billion Esencia Project Despite Strong Environmental Opposition

Puerto Rico's government has approved the USD 2 billion Esencia luxury development in the coastal town of Cabo Rojo, setting up what is expected to be a long legal fight with environmental groups. The approval comes as the island faces a worsening drought and a government-declared water emergency, raising fresh concerns about the project's impact on natural resources.

The project will cover around 2,000 acres and include 500 luxury hotel rooms, 1,200 private homes, two golf courses, an equestrian centre, a K to 12 school and a 24 hour medical centre. Luxury hotel brands Mandarin Oriental and Rosewood Hotels & Resorts are part of the development.

The project is backed by Reuben Brothers and Three Rules Capital, which say more than 75 percent of the land will remain as green space. The companies also plan to restore 33 acres of wetlands, protect mangroves and coastal dunes, and power the entire project with renewable energy. They say Esencia will have its own water and power systems, with 75 percent of its water coming from recycled wastewater and rainwater, so it will not use Puerto Rico's public water network. Developers also pledged USD 40 million for local public projects and said the development would create more than 17,000 jobs.

Environmental groups strongly oppose the project. The Defend Cabo Rojo Coalition says the approval was granted without proper public hearings, while Braulio Quintero of the Institute for Socio Ecological Research said, "We are going to fight this in every forum possible." Activists are preparing legal action and demanding public hearings. The project must also meet 46 environmental and technical conditions before full construction can begin.

Developers expect property sales to begin later this year, with the first residents and guests arriving in late 2029.