Now, the story of a project that went so wrong, they had to spend millions just to undo what they built. ​ The project? The Queen Elizabeth University Hospital (QEUH) in Glasgow, Scotland. Cost? £842 million. Procurement model? Traditional public procurement. Outcome? Let’s just say you don’t want to be admitted there. ​ Build one of the biggest, most advanced hospitals in Europe. A new national symbol of innovation. State-funded. Fast-tracked. Public sector delivery all the way. No PPP. No private financing. No lifecycle risk transfer. Just a good ol’ government-led mega project... where they did not know well how it would be delivered or what they wanted exactly... but... this is business as usual, right? ​ And in these conditions... What could go wrong? ​ Short version? The hospital opened… and started literally poisoning people. Ventilation system failures Mold in critical wards Waterborne infections in the cancer ward A child patient died. Dozens of families sued the government. The building was labeled a public health disaster. Just think about that: A hospital designed to heal… ended up killing. ​ What Went Wrong? Design was rushed and unchecked. The public sector team had no long-term skin in the game. Poor materials. Poor commissioning. Poor maintenance plans. No one was on the hook once it opened. They spent more time on political press releases than on ductwork specs. ​ The Aftermath Years of remedial works. Millions in retrofit and legal settlements. A public inquiry. And now, a pile of reports titled: “How Not to Build a Hospital.” ​ My Reflection Would a PPP have saved the project? Maybe not politically... although at least politicians would have someone to blame... But financially, operationally, and morally? Yes. ​ Because in a well-structured PPP: The private partner has a 30-year headache if they screw up the ventilation. The financiers demand proper design reviews. Long-term maintenance is baked into the contract — not an afterthought. And when something fails, someone pays — and it’s not always the taxpayer. ​ QEUH is what happens when no one’s accountable long-term. ​ PPP isn't a silver bullet, I say this many times — but at least it has a target... and someone to blame as I said. ​ Now? The hospital has a nickname: The Sick Kids Hospital. Not because it treats them. Because it makes them. ​ Lessons Learned Too much risk on the public sector, with limited recourse to enforce long-term performance standards. Lack of emphasis on whole-life costing and maintenance Insufficient involvement of experts in healthcare ​ See you in the next failure... but for now, enjoy the lessons below. ​ ​ 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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Most PPP stories end in headlines. Claims. Inquiries. Mold. Political blame tennis. But today I want to tell you about a project so well-executed, it’s almost boring. Delivered on time. On budget. Met KPIs. No press scandals. No massive claims. No screaming auditors. You probably never even heard of it. Meet the Ararat Prison PPP in Victoria, Australia. What was it? A 350-bed medium-security men’s prison Located in regional Victoria Delivered via PPP under the Partnerships Victoria model...
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Grab the popcorns. Let me tell you about a project that had everything: Corruption Protests Love Treason. Political revenge And a final bill… with zero water delivered Welcome to Mexicali, Mexico. A case that is on Spielberg’s table… or should be. Once upon a time, the government had an idea: “Let’s build a desalination plant. The private sector will pay. We’ll pay later. Easy.” Enter: A PPP for a $500M desalination plant to supply water to Mexicali, a dry city near the U.S. border. The Plan...