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The Most Expensive Silence in a PPP
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You’re the preferred bidder. You’ve survived the RFQ bloodbath. You’ve outlasted two global consortia. You’ve negotiated 1,200 comments on the Project Agreement. You’re tired. But you’re smiling. Because you’re “there”. And your bonus, and your holidays to Fiji, “almost there”. Or so you think. In 2014, the East West Link PPP in Melbourne had a preferred bidder. Contracts were executed. Advisors were celebrating. Many, already paid. Then elections happened. Ahhh… the famous political risk of countries in Africa, Latin America, etc… Well.. New government. New ideology. New headline: Project Cancelled. Over AUD 1 billion paid in compensation. Yes… with b of “burro” or donkey. Imagine explaining that to your investment committee… This is the lie nobody tells junior PPP professionals: Preferred bidder does not mean safe. Until financial close money hits the account, you have nothing. Zero. In PPPs, risk doesn’t disappear. It just changes clothes. Every phase has a black swan awaiting… Then… in our case. Technical risk becomes political risk. Commercial risk becomes reputational risk. Time risk becomes election risk. And the most dangerous moment? The silence between preferred bidder and financial close. Because everyone relaxes. And that’s when the knife comes. And not many can see it coming… If you work in PPPs, remember this: Financial models don’t vote. Governments do… well… and the people, sometimes. If you’re not scared about silence, click below. Only for the brave. ​Mentorship 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 👇
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