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Vicente Valencia

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Who to blame

Impossible. Nobody can be that stupid. Well… welcome to another day. A contractor (let’s call him Mr. Optimism) decided to “save time” on a warehouse project. How? By installing the roof before securing the steel structure with the final bolts. “Don’t worry, jefe, it holds by itself.” Famous last words of every construction project ever. The weather app showed light breeze. New Zealand showed: “Hold my beer.” A 45-km/h gust arrived, grabbed the entire roof like a giant frisbee, and sent it...

In a meeting with an agency not long time ago, I was asked for advice with regards to the team they’ll need to set up for managing a PPP project. Obviously, our conversation started by a “are you kidding me”? Managing multibillion dollar projects required people able to handle multibillion dollar projects. That’s the basics. If you bring to your team people used to manage projects in the range of 10 millions… the focus is not going to be on the right things. The nickelling and diamonding...

Imagine that you write your monthly report. Yes, you’re part of a consortium in a PPP project. You write your report. And you send it to the agency, the government, or whatever. It’s subject to the famous review procedures. The agency sends back comments. They disagree with some of your statements. And you disagree with those statements. What to do? Remember, next month, again the j*dido report de mi€rda. You can be dragged to an endless set of discussions about every single monthly report....

A terrible clause about Force Majeure. A lawyers’ money-making machine with the definition of “Substantial regulatory changes” A few days ago, I had the opportunity to discuss common flaws to PPP contracts. Lawyers can be really good drafting millions of pages. They have no idea how real people deal with those pages in a day to day basis. That was the conversation I had with a student of the mentorship. 5 clauses. 5 headaches. Easily avoidable. The clauses, the potential solutions, together...

Despite being on a Saturday, I received a few emails asking about yesterday contract! Look… I have plenty of examples. Yesterday, it was a PPP in the Philippines… but I’ve been working on a few others PPP project. A fantastic example with nice clauses that are less bankable than a PPP for a data center in North Korea. Kenya. A known highway. The Review Procedure. “Disagreements will be discussed” Literally. Good luck with getting a solution. Discussing can be the more frustrating of...

These days I’m enjoying some interesting stuff. There is a clause. In particular, 13.3 of a project agreement. “Foregone Toll Income & ‘Mutual Agreement’ Extension”** I love the title. It deals with cases where the government prevents the toll road from charging the approved tariff. Then, if this happens, logically for political reasons… The government must either: Compensate the monthly Foregone Toll Income, or Grant a Concession Extension, the duration of which must be mutually agreed If...

These days, I usually panic a little. Just a little. Not because of the “social commitments.” And not because of the alcohol… which, let’s be honest, doesn’t do your health any good whether it’s “only one,” “only two,” December or June. No. It’s something worse. Much worse than overeating and overdrinking. Queueing. For me, queueing is more terrifying than being forced to watch an entire season of Big Brother. Nothing good ever comes out of standing in line. Nothing. Maybe disappointment…...

A nice thing of brining my son to daycare and this being in the same building than the main NZ infrastructure agencies is that you meet lots of people. From the doors to the elevator, people having coffee, hanging out in the sofas, etc. Suddenly a “hey, Vicente”, and then… Some free consultation. Well… not as free, as the coffee is excellent, I always order one. “On me”. The usual suspects are: How can ensure competitive tension? How can I deal with claims? How can I prevent claims? How many...

I’ve been closing some insurance policies these days. For myself. Health, life, mortgage, etc. You don’t appreciate enough a good broker until you get one. If you’re serious about investing, this is your second more important broker after your mortgage broker. But I don’t want to talk to you about personal insurance. But PPP insurance. It’s probably one of those fields, most people mess up. Clients. Banks. SPVs… All parties alike. You have insurance to cover accidents on site causing...

I’m doing quite a lot of work these days with market lead proposals. I mean, proposals coming directly from the market and made to the government of New Zealand. I love the ideas put forward by proponent. Their enthusiasm. And commitment. Most of them fail in the “exclusivity” criteria. Why you are so good that the government absolutely needs to negotiate with you directly without going to the market. It’s fascinating. That’s a high bar, but some people get through it. IP, exclusive rights to...