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Puerto Rico approves $2 billion Cabo Rojo luxury project as critics vow legal fight

"These are serious threats to our sustainability as a people."

The Cámara de Comercio de Puerto Rico building.

Photo Credit: iStock

People are critiquing Puerto Rico's approval of a huge luxury project in Cabo Rojo because of how it will affect environmentally sensitive areas.

According to India Today, the $2 billion Esencia plan would stretch across over 2,000 acres on the island's southwest coast. The project's developers said, however, that more than 75% of the land would be set aside for conservation purposes. 

What happened?

India Today reported that resort-style development can now move ahead after Puerto Rico's Adjunct Board of the Permit Management Office approved it. The project includes 500 luxury hotel rooms, 1,200 private homes, two golf courses, an equestrian facility, a K-12 school, and a 24-hour medical center.

Developers Reuben Brothers and Three Rules Capital said more than three-quarters of the land would remain dedicated to conservation and green space. They also said the plan would restore about 33 acres of wetlands and repair coastal dune and mangrove ecosystems.

According to India Today, the companies have also said Esencia would run entirely on renewable energy and rely on its own water and energy systems. Mandarin Oriental and Rosewood Hotels & Resorts are among the hotel brands already tied to the development.

Pushback emerged quickly. India Today reported that Braulio Quintero, executive director of the Institute for Socio-Ecological Research, criticized officials for approving construction "without a public hearing, without governmental transparency."

Why is this concerning?

Critics are concerned about land use and the developers' lack of transparency.

In Cabo Rojo, wetland ecosystems are part of the coastal environment that supports wildlife and helps shield shorelines. Esencia's golf courses, luxury housing, and resort operations can both remove those ecosystems and place major demands on water and electricity.

While developers also claim that some ecosystem restoration will happen, people in surrounding communities want more details and evidence.

Big projects often arrive with promises of employment and economic activity. But when developers don't address community needs, the environmental burden can fall on the surrounding population. Creating a lack of trust can only compound that burden.

What's being done?

Developers say the plan is intended to answer those criticisms. Along with conservation areas and habitat restoration, they have said the project would maintain public access to the beach and create more than 17,000 jobs.

They have also described Esencia as a model for "environmentally conscious luxury development." According to India Today, sales are slated to begin later in 2026, and the first residents and guests are expected in the latter part of 2029.

Environmental groups, however, say they are not backing off. Opponents want more public transparency and have indicated they will challenge the approval through every available avenue.

Quintero said, as reported by India Today, "We are going to fight this in every forum possible," and added, "These are serious threats to our sustainability as a people."

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