City councils love PPP. But not as much as their consultants. ​ Inexperience politicians, public service teams with too much on their plate and not keen to sophistication other than excuses for leaving the desk for getting a 2 hours coffee break. ​ With these elements… what can be wrong. And still… all things that they could get done with proper guidance… but that’s for another day. ​ Let’s focus on Macedonia… or Fruit Salad as it’s known in Spanish. ​ Valandovo. The guys wanted to be modern. Efficient. All that… Maybe to get Greta’s attention. ​ Who knows. ​ A great, fantastic, unique – super red flag here – public lighting project. ​ They launched the PPP contract around 2020, claiming a “win-win public-private synergies”… free translation from Fruitsaladish. ​ Ambition and marketing over substance — the usual. ​ So… very soon. The collapse. ​ The RFP? Competitive… or so they said. ​ Selection criteria? Confidential. Scoring? Hidden. You don’t get legitimacy by stealth… ​ Just the basics: Baseline assessments, technical specs, risk matrix — all patchy or absent. ​ If your contract is built on guesswork, you might as well flip a coin. ​ Then, mid-construction… Termination. Fireworks. Half the work done, half the money spent, and still nothing usable. ​ Then, the usual game. ​ Blame and Lawsuits. Both sides of the table pointing fingers, digging through contract clauses. Meanwhile, locals have broken lampposts or partial wiring but no lighting. ​ I said many times and I say it now. Invest money in the tender. As with any construction in your hands… doing changes once that things start, at scale 1:1 is too costly. ​ Always demand iron-clad transparency in the tender — no secret sauce, no hidden scoring, no pre-cooked games. ​ And even if this seems a piece of cake, due diligence. It’s not optional. If your technical, financial, legal vetting is weak, you’re signing up for disaster. ​ Define who carries which risk, and hold people accountable if they fail. Include exit / cancel / clawback clauses that minimize damage — because yes, sometimes termination is inevitable. ​ If you find yourself facing a PPP that smells too good—take this as your red flag. Too fast… the same. ​ I could continue… for hours… but you can learn much more by yourself in this link. ​ ​Don't get embarrassed - Get the basics in PPPs​ ​ 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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Early brief: “Deliver a shiny new light rail through Sydney’s CBD. Easy. Everyone loves trams.” Translation: scope unclear, assumptions heroic, risks buried under PowerPoint. They signed a PPP anyway. The CBD & South East Light Rail (CSELR) looked great on slides. A 12-km network. Wrapped in a neat PP. Design, build, finance, operate, maintain. The promise: reliable transport, urban sparkle, political selfies. But, as usual, then construction met reality. The contract drawings and utilities...
It was the early 2000s. In Disunited Kingdom the formerly known as UK. The government wanted to rebuild hundreds of schools. Big dream. Big politics. Usual suspects. Of course, as per the playbook, before launching the program, they ran a market-testing exercise to “hear the voice of the private sector.” Lovely. And the market said what the market always says: “Of course, I can, it’s possible. I cannot be fired or lose my bonus… so, I confirm that we can design, build, finance, and maintain...
I have 4 airbnb apartments in Auckland. 3 perfoming well. 1 slagging. Quien no llora no mama or who does not cry, he is not breastfeed, or less literally, if you don't cry, you don't get fed. I sent an email. What’s going on? I’m disappointed. What I can do to help. In 48 hours or less, the calendar in the slagging apartment is full. No response, just facts. Like magic… back on track. This situation is not unusual. In my 20 years managing projects and people, I’ve seen this almost every day....