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Vicente Valencia

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The chaos I’m seeing inside PPP projects right now… and the opportunity nobody sees

I get it. I’ve been CEO. I know what ego feels like. That urge to change things. To leave your mark. To justify the big salary. I get it. But changing things that already work? Just to prove you exist? No. That I don’t get. Look. I’ve been speaking with people across PPP and Real Estate. Different countries. Same story. “Like beheaded chickens.” Clients changing direction mid-procurement. Swapping teams halfway through. Rewriting strategy… in the middle of a transaction. Yes. That bad. Even...

Most consultants are expensive spectators. Nice slides.Clean Excel models.Zero impact. They show up.They talk.They disappear. And the project?Still stuck. In the mouse wheel… running but still in the same place. It may be the perverse incentive of maximizing gains by increasing scope and delaying everything… although that’s for another days. Look… In big projects, nobody pays you for your time.They pay you for one thing: Movement. Decisions made.Problems killed.Risks reduced.Money saved....

This is a nice week for me. Birthday and week of great decisions. Decisions on my businesses. Decisions on my investments. Important ones. You see… I feel butterflies in my stomach. Fear. Doubts. So, I know perfectly well that I’m growing. I’m making progress. Look. Matt Gray, someone you should follow on LinkedIn – it’s free and you’ll learn a lot from him – said the other day that your circle establishes your ceiling. Your boss. Your friends. Your business partners. Your colleagues. Etc....

I once said that Preferred Bidder is the most dangerous moment in a PPP. It’s like the moment that the shark attacks in Jaws… just when you expect it less… Everyone relaxes. Champagne glasses appear. LinkedIn posts multiply. “Proud to be part of the winning consortium.” Then reality walks into the room. Let’s talk about the Malaysia–Singapore High Speed Rail. A mega rail PPP. 350 km. High-speed trains. Two countries connected. Estimated cost: $15-20 billion. The type of project ministers...

Some of the worst PPPs in the world come from capital cities trying to look impressive. Huge buildings. Architectural statements. Politicians cutting ribbons. And budgets exploding. But some of the best PPPs? They come from places nobody talks about. Take Ferguson Place Recreation Centre PPP. It sits in Fort St. John, Canada… Oh Canada! Population: about 21,000 people. Not exactly Tokyo. The city needed something simple: A recreation centre. Swimming pools. Ice rinks. Fitness facilities....

A toll road. In one of the richest regions of Europe. Northern Italy. Lombardy. Industrial powerhouse. Traffic everywhere. What could possibly go wrong? The project was called the Autostrada Pedemontana Lombarda. A massive motorway designed to connect cities north of Milan and relieve congestion around the region. On paper, it looked like a dream. Economic powerhouse region. Millions of inhabitants. Constant truck traffic. Banks were queuing to through their money to the asphalt plant. Making...

The system worked perfectly. The satellites tracked the trucks. The software calculated the tolls. The invoices were ready. The gantries were already installed across France. 173 of them. Steel structures over highways, quietly waiting for trucks to pass and pay. The project cost almost €1 billion. It was called the Écotaxe Poids Lourds. The idea was simple. Heavy trucks should pay for using the roads. Especially foreign trucks crossing France. Elegant. Who would say no to such a great idea?...

My wife had been unsuccessful for a while. She tried three times. Her ads expired those three times. $75 the higher bid. She wanted at least 100$ for an almost new bike that our son used 5-10 times max. She published the ads with 100$. The price new: 160$. She told me. I listened. Shall I call the buyer that offered me 75$? No, I said. Increase the price to $120 in the ad. Seriously? But new it’s 160 and this one is almost 2 years old. 120$, go, try. 24 hours later… Sold, 100$. WOW! My...

Alfred Hitchcock had a peculiar habit. He appeared for a few seconds in almost every one of his films. At first it was a joke. Then it became a problem. Audiences started watching the screen obsessively, trying to spot him. They were no longer following the story. They were hunting Hitchcock. So in films like Psycho, he solved it in a simple way. He appeared right at the beginning. Problem solved. Distraction gone. When I review PPP bids, clients always ask the same question. “Vicente…...

Everyone loves the construction contractor. Big cranes. Huge concrete pours. Drone videos. Beautiful. But in a PPP project… Construction lasts 3 years, maybe 4… except in NZ… around 8 years – don’t ask me why. Operations last 30. And yet, people spend 90% of their time talking about construction. Very clever. And I understand… it’s the place of the big bucks; the ministers’ visit and the Public Relationship paradise. Question 72 of the course below answers a simple question: What is a good...