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Stop Overthinking PPP Evaluations — Do This Instead
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Most PPP evaluations are designed by committees obsessed with checking boxes. Not with selecting the best partner. ​ The result? Overcomplicated scoring matrices Subjective criteria disguised as science Endless “clarification” rounds ​ A perfect environment for disputes… ​ Sorry. A PPP evaluation is not an academic exercise. It’s a decision. And decisions must be fast, clear, defensible. ​ So… how do you design the perfect evaluation? ​ The 3-Step PPP Evaluation That Actually Works ​ Step 1 — Choose only the best consortia Not everyone deserves a seat at the final table. Prequalify serious, experienced teams. Full stop. ​ Step 2 — Pass/Fail the technical minimums Define what the asset must achieve over 30 years: ​ Availability? Safety? Lifecycle performance? KPIs? ​ If they meet the standard → pass. If not → bye bye. Simple. Fair. No discussions. ​ Step 3 — Award to the best price and risk allocation But not just “lowest tear-down number.” Price + lifecycle + risk transfer = real cost That’s what matters. ​ Why this works ​ Speed → Less engineering theater, faster decisions Clarity → No “interpretation” battles Competition → Strong bidders stay to the end Value for money → Focus on outcomes, not paperwork ​ And yes… this model terrifies the “consulting industrial complex” that needs 400-page reports to survive. ​ Let them be terrified. ​ PPP Rule: If you can’t explain the evaluation in one slide… it’s designed to fail. ​ More on tomorrow. In the meantime: ​Vicente Valencia Academy ​ ​ 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. ​ ​ |
Vicente Valencia
I talk about Personal Growth, Management, Infrastructure and More | 👇JOIN +2k readers 👇
When you spend enough time in Europe, you usually end dealing with a bank. It’s as lovely as a tooth pain. The EU is the bureaucracy hell of the world. A place that tells you even how the cap of a bottle of coke must be… and of course, they did not think about any market testing or user case. What for? Well… Banks. You can’t live without them, but you hate them. Mastodonts with benefits. Shield by government. Too much money invested in lobbies… or finding imaginative solution to hide bribes...
Many people challenge my preferred RFP strategy for PPPs: “Pre-qualify strong consortia, set a minimum technical pass/fail, and award to the best NPV bidder? They’ll just bid low and renegotiate later!” I get it. That tactic has been abused in Latin America for years. But we need to ask: Why has +20% (often +50%, +100%, +200%) become almost inevitable there? Let’s look at the real causes: Why PPP prices skyrocket after award 1) Renegotiation is systemic. In transport PPPs, up to 78% of...
Africa. Mid-2010s. You’re in the middle of a multibillion-dollar PPP. Your consortium is assembled. Your lenders are mobilized. Your bid team is burning cash like Tesla compensating executives… The agency launches the RFP. Everyone is excited. A fair, competitive process… in theory. And then it starts: Deadline extended. “More time to refine proposals,” they say. Another extension. Silence. And then another. “These guys don’t seem ready” Drop a new batch of documents in the data room. (Oh,...