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It happens a few weeks ago. “Tell me about Madrid and Spain, how do you do it? I heard a business case that Madrid has been able to deliver the cheapest tunnels in the world…” I did not know about that case, but my answer was simple: “Do you know how many TMBs had Madrid at the time?” Look. If you want cheap infrastructure, create a pipeline. Madrid had during more than 10 years between 7 and 8 TBMs (the machines to make tunnels in engineering slang). They are extremely costly. So, they happened to be in the city… and just available. Mobilization cost? Almost zero… compared with millions of dollars in moving one from a country to another. Training? Zero. The guys there were experts. Experts in the machinery. Experts in the ground conditions. Same staff doing over and over the same. They did it better, safer and faster at every time. Same the engineers, designers, managers. Practice is amazing. It can make you even play the piano... So, “yes, I have no doubt that they could have done a good job”. Create a pipeline of projects, and this is the result. Better infrastructure, faster, safer and cheaper. Over, and over. You bring and retain talent, you bring investors, builders, innovators. Do a one-off after another one-off and you’ll get nothing but grief and extra costs. Next time that you think of creating a pipeline… check this out. ​My Mentorship - $19.90 the first month, then $49.90/month​ 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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Still in the UK. Now, a hospital PPP. Large. Modern. Shiny. Hundreds of millions invested. Years of planning. Procurement. Financial close. Construction. Finally… The building was delivered. Or so everyone thought. The project was the Royal Liverpool University Hospital PFI project. New hospital. Supposed to open in 2017. There was only one small problem. The building could not be used. Fire safety defects. Structural issues. Incomplete works. Entire sections of the hospital had to be torn...
Everyone relaxes after the contract is signed. Lawyers celebrate. Sponsors shake hands. The press release goes out. “Landmark infrastructure project.” “World-class partnership.” “Long-term value for taxpayers.” Champagne. Photos. LinkedIn posts. Etc. In 2018 one of the largest PPP contractors in the UK, Carillion, collapsed overnight. Not struggling. Not restructuring. Collapsed. Gone. A tomar por cul0. The company was involved in dozens of PPP projects across the UK and beyond. Hospitals....
I hope you had not been in one of those… A meeting with a Power Point. Around 130 slides… Yes. One. Hundred. Thirty. Graphs. Tables. Appendices explaining the appendices. The speaker? Monotone. Boring. Like a GPS giving directions in the desert. A funeral seemed a fiesta in Ibiza. Slide 14… Slide 38… Slide 79… Around slide 92 something magical happened. One of the client directors fell asleep. Not metaphorically. Actually asleep. Head tilted. Eyes closed. The kind of sleep that says: “I’ve...