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Delusional. Period.
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“We have seen that a few projects have used this process to manage interfaces.” “A few projects? Successfully or successfully used? And if you have never done it before… how can you be sure that you’ll be successful… not many projects apparently out there to take lessons learnt. Why not a bread and butter PPP where you combine the two projects and eliminate all interfaces?” “Such a contract would be too big.” “Well… such a project would be too expensive.” ​ That gives you an idea of the conversation with a public department… and why nobody was happy with my words. I can’t help it. I guess that I smell bullsh*t with the same precision that sharks smell blood. ​ Being too innovative in big infrastructure projects should carry jail sentences. Experimenting with public money when you don’t have a pipeline to fine tune your contractual framework is too tempting for big egos. It’s also a disaster for taxpayers. Contractors put premium prices for innovative risk profiles, clauses and sharing cost mechanisms unseen before… You don’t need to sound the market for that… and still our public servants – no matter the country – apparently love paying premium. They won’t do it for their kitchen renovation, but love to do it for your public services and infrastructure. ​ Of course, consultants are guilty of having to justify their fees… another bread and butter kind of project does not bring big money. ​ I get that. ​ Nobody is going to be reprimanded for following “big four” advice. I agree. But what a pity. And many times it’s not the public service fault. No training. No development of internal capacity. No long term vision. No budget to bring and retain talent… ​ Look. If I can recommend a place to start driving change is in the link below. ​ ​100 Q&A About PPP that you MUST KNOW​ ​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. ​ ​ |
Vicente Valencia
I talk about Personal Growth, Management, Infrastructure and More | C-Suite Executive | Mentor, Coach, Strategic Consultant | Real Estate Investor | 👇JOIN +2k readers 👇
Conflict of interest: A time bomb You can have the best lawyers.The shiniest financial model.The perfect risk matrix. The most balance incentive a.k.a. bonuses program… And still see your project collapse…Because of conflict of interest. Take the Athens ring road extension. During procurement, it turned out that one of the “independent” advisors hired to evaluate bids had close financial ties with a consortium member. Not a minor connection. A proper stake in the game. When journalists...
Yesterday I told you about a KPI regime that seemed a horror story. Today, I bring you another that kills. Kills contract, I mean. I often tell people that vertical PPPs are not my cup of tea. Hospitals… I run away. Too complicated. Too political. Too high stakes. Take the wave of hospital PPPs in the UK during the 2000s. On paper, they looked brilliant: new facilities, modern equipment, long-term maintenance secured. But still… the KPI regime was written by bureaucrats with too much coffee...
Some PPPs die before they start.Others collapse under the weight of construction. And then there are those that rot from within — strangled by their own KPI regime. Take the Peterborough Prison PPP in the UK.On paper, it was innovative: the first privately financed prison with a focus on rehabilitation. The government loved the concept. The innocent believers in human nature wet dreamt about it. The financiers lined up.The operator thought they could make it work… if not, they would still...