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The less sexy part of a PPP project
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It’s not sexy, I reckon. It’s never at the parties. Never. All the attention goes to financial close, the construction programme, the liquidated damages, the change regime, the events, the refinancing… And then there is this thing. Almost forgotten. Nobody sees it. Nobody talks about it. Until one day you get the perfect image of a train, lights on, coming out of the dark… And the poor rabbit standing in the middle of the tracks. That thing is the Hand-Back Regime. And it is one of the most reliable sources of disputes, claims and disagreements in any PPP. A sure thing. It is also one of the elements that new investors, new lenders, new advisers, or just new people coming into the project halfway through, will look at very carefully. Because 25, 30 or 40 years is a long time. New blood will come. New people will read the contract. And then… A poor Hand-Back Regime can make your project not just painful. It can make it unbankable. Which is a nightmare by itself. Most PPP projects get this wrong. They think about handback when it is already too late. When there is no money. No alignment. No patience. No easy solution. Instead of making handback the proof that the project performed well. Instead of making sure handback is in everyone’s mind from financial close. Instead of creating a clear, objective, bankable regime from day one… They leave the fireworks for the end. Just when everyone is tired. Just when everyone wants to leave. Just when alignment is gone. Great idea. Well… I have compiled 9 lessons from an excellent Hand-Back Regime that should be the benchmark for any PPP. And I have also compiled 9 lessons from a project that has the elements of a Hand-Back Regime, but that I assure you… Will have fireworks. Because elements without a story are not what you want. A few clauses here. A few obligations there. A few inspections somewhere. That is not a regime. That is a future dispute with page numbers. You’ll find the two courses below. Only until Sunday at 23:59 NZ time, you can get them for $79.90 each. After that, the price increases to $129.90. Links below: ​The Room: 9 Lessons For A Successful Handback​ ​The Room: 9 Lessons From A So-So Handback Regime​ And of course, both courses are included in your subscription to The Room. Which is only $129.90. You can do the math now. Or you can wait until Monday… And lose the deal. ​The Room​ 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
Weekly insights on how to perform when it matters | High-stakes decisions. Real situations. No BS. | 👇JOIN +2k readers 👇
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