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One of the “interesting” things about having sat at all four corners of the table, and having done so in several countries, is that you start comparing. Yes, I know. It’s a Spanish sickness. We like criticising more than we like evading taxes… or voting for politicians who do. I can’t escape my genes, no matter how a Kiwi I've become. ​ You compare. And sooner or later, you reach a painful conclusion. Especially now that I live in the paradise of the South Pacific. ​ Nations led by builders build things. They get stuff done. ​ Nations led by engineering firms (a.k.a. consultants) build… PDFs, PowerPoints, reports, and all the “essential” documentation required to justify doing more of the same. Forever. ​ Go to Madrid. You’ll find the top construction companies (Ferrovial, ACS, OHL… you name them) occupying the best buildings, in the best locations. Go to Auckland, and what do you see? Those shiny and modern towers with lot of bricks in their facades belong to the engineering firms. The builders? They’re out in the suburbs, in industrial parks surrounded by forklifts and dust. ​ In one place, for better or worse (corruption included) projects get overpaid and built. In the other, hundreds of millions are spent every year on feasibility studies… and not a single excavator hits the ground. ​ And if you want data, here’s your steak. Around 5.5% of every project’s cost goes just to environmental permits. That’s roughly NZ$1.3 billion a year. That’s the cost of two good-sized hospitals. On average, it takes 10 to 15 years from the first feasibility study until machines finally touch soil. Then light a few candles for your saints because you’ll still need divine help to see construction completed. ​ Surely there must be a way to do things faster… and smarter. You don’t need corruption. But at least bring the builders. They’re the ones who make a country work. ​ For more insights, check below. ​The top 15 Lessons of a successful project​ ​The top 15 lessons of a nightmare project​ ​Don't be embarrassed. ​ ​ 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. ​ ​ |
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Suggesting beats showing. Always. Just see what happens to women that show too much. They attract the wrong type of men… or probably not. They just attract all men… and then, it’s more complicated to do a good selection. The chances of getting it wrong increase. But if they just suggest, they tend to attract a more sophisticated level of men. Less brutal, savage, and basic. Then, the chances of getting the wrong type of men decrease. And remember, women risked their lives having s€x not long...
You can find horror stories almost everywhere. Not just developed countries. And successful ones too… as it’s not rocket science. Before 2010, the Philippines’ PPP program was infamous for all the wrong reasons: legal uncertainty, endless bid delays, weak feasibility studies, and risk allocations that scared investors away faster than typhoons. So they decided to stop, review, learn and repeat. They started to ask the market about what was wrong with the last projects. They noted. And decided...
You know that moment when a government says: “We’re launching a massive PPP program.” Or… “We are going to partner with the private sector to build roads”! Everyone claps like seals because… wow… private money, shiny highways, “international best practice,”. Re-election secured. Mexico did that in the early 90s. Fifty-two highway concessions. I repeat. 52 PPP fever everywhere. The “future” of infrastructure. And we’ll build Speedy Gonzales speed. Spoiler: It didn’t end well. Actually, it...