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Why no one wanted to finance this “perfect” project
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There is a project that I follow even if I live now at the other side of the Pacific. It is… or it was… or it will be one day, one of the most ambitious (and game changer) infrastructure projects in the world. It was also meant to be a PPP. California High-Speed Rail The idea sounded great: Connect major cities. Reduce emissions. Transform mobility. On paper, it had everything. In reality… it had a problem. The scope was never stable… and still it’s not. Routes changed. Stations moved. Environmental requirements kept evolving. Interfaces with existing infrastructure became more complex every year. And the more they studied it… The more they realized they didn’t fully understand what they were building. Nothing to say about the price… Still, there was early talk of private participation. Even PPP structures. But here’s what lenders saw: No stable baseline. No clear capex. No predictable timeline. No defined risk envelope. No clear political support. Translation? “No thanks.” Private capital didn’t show up or was not queuing for a project that would transform a country... Which is concerning. Not because the project wasn’t important. But because it wasn’t defined. So the project moved forward… without a real PPP structure. Funded largely by the public sector. With delays. With cost overruns. With constant debate. As I like saying… Different country. Different name. Same movie. Trying to force a PPP into a project that is still evolving is like signing a 30-year contract… without knowing what you’re buying. PPP is not for discovery. It’s for delivery. If your scope is still moving… Your financing is already dead. Remember that… For daily, exclusive, and more insightful reminders, you know what you have to do. ​My mentorship - Weekly PPP Lessons from a PPP ex-CEO​ 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 👇
Not corruption. Not politics. Just… incompetence. A real project. $800M. In LatAm… No more details, as in this distribution list, there are too many people living in that country… Here you are the 4 red flags that would have helped you to smell blood miles away. First red flag: They didn’t understand their own project. I’m not exaggerating. They launched the RFP with: Misaligned traffic studies Outdated geotech data A design that didn’t match the environmental permits Second: They outsourced...
Selling used stuff online is hard work. A lottery. A candy box. I tried it once. In less than 5 minutes, I got a message. 30 seconds later, I knew it was a scam. Emoticons. Broken grammar. Asking for my number immediately… when the platform literally tells you not to. Block the user. Close the chat. And then do what a good SPV CEO does… Subcontract. Pass it to someone who knows better. Create the right incentives. Supervise. Manage issues. Etc. Life is just another PPP. Your standards say a...
The pattern... Different country. Different name. Same movie. A “strategic” project. Big announcements. Strong political backing. Aggressive bids. Beautiful financial models. Everyone smiling at financial close. And then… After bonuses paid and elections won… Reality. Costs go up. Time disappears. Risks… yes, those that were “managed” and “transferred to the party better able to deal with”, start showing up. Suddenly: - contracts are “reinterpreted” - assumptions were “too optimistic” -...