2. The Department of Economic Affairs (DEA)
defines PPP as:
“PPP means an arrangement between a government or
statutory entity or government owned entity on one
side and a private sector entity on the other, for the
provision of public assets and/ or related services for
public benefit, through investments being made by
and/or management undertaken by the private sector
entity for a specified time period, where there is a
substantial risk sharing with the private sector and the
private sector receives performance linked payments
that conform (or are bench marked) to specified, pre-
determined and measurable performance standards”.
3.
4. Agreement between Government and the
Private Sector for the Provision of a Public
Good or Service by the latter.
It involves private financing, construction
and management of key infrastructure etc.
4
5. Key bottleneck in e-Governance
Successful implementation of
e-Governance requires an
abundance of technical and
financial resources.
Antidote:
PPP has emerged as a viable
solution, thereby enabling
adequate funds and skills of the
private sector to be utilized for
e-Government projects.
6. PPP in e-Governance
The private partner invests in the application
software design, development, implementation
and operations.
The government maintains the responsibility to
deliver services to the citizen.
7. Success Factors of PPP Models
Political Will
Project address a real need
Clear definition of the Scope, Roles, Risks &
obligations
Legal Framework
Consultation with stakeholders
Transparent Selection Procedures
Security and Privacy
8. Features of PPP
PPP are concerned with services, not assets.
The Government does not need to own
infrastructure to deliver services.
Private partner investing public infrastructure and
providing related services to the Government,
Government retaining responsibility for the
delivery of core processes/services.
The Government and private party working
together for achieving certain standards.
9. BENEFITS OF PPP MODEL
Citizens Government Private Partner
1. Easy Access to
service
1. Minimizing financial
outgo
1. Reliable stream of
revenues
2. Single window/one-stop
shop
2. Better liquidity 2. Low risk
3. 24x7 convenience 3. Protection against
technology
obsolence
3. Creation of employment
4. Flexibility in access
methods
4. Speedier
implementaion
4. Capturing business from
related sectors
5. Saving of indirect cost
and hardship
5. Efficiency in
management
5. Invoking private sector
skills, experience,
access to technology,
and innovation
10. Key principles for PPP
Return on Investment (ROI).
Minimizing brain drain .
Create realistic business models for e-
Governance projects.
Fi d ea h part er’s stre gths.
Develop formal policies on outsourcing
11. Return on Investment (ROI)
Companies- primarily means revenues.
Government- Means efficient, reliable,
robust services and increased legitimacy and
trust from citizens.
Officials- Means receiving training, as well as
professional opportunities.
12. Mi i izi g rai drai .
• To minimize government staff turnover, it is
important to develop innovative
compensation packages and professional
perks as incentives.
• Government might also want to consider
including clauses in contracts with the private
sector that prevent contractors from hiring
project staff away from government.
13. Create realistic business models for e-Governance
projects.
• The partnership can be stronger if there are
people in government who understand how
companies work and people in the private
sector who understand the needs of
government. A solid, well-designed business
plan will help.
14. Fi d ea h part er’s stre gths.
• Both business and government need to
contribute actively to the partnership.
Companies can be a source of cost-sharing,
technology and project management
expertise. Government needs to promote the
use of e-Governance among the public and
officials, as well as create a legal framework.
15. Develop formal policies on outsourcing.
• Government must establish clear parameters
for working with the private sector. More
important, the bureaucracy needs to be
trained on how to negotiate and draft such
contracts.
16. Role of Government in PPP
Set policy, identify opportunities, and define
objectives;
Ensure transparency and probity in the
procurement process;
Safeguard the interests of customers and the
general public.
17. Role of Private Partner
Achieve defined levels of performance in
service delivery.
Provide expertise and innovation.
Provide access to private financing, as
appropriate.
Provide a sufficient return to investors and
other stakeholders.
18. e-Governance: widely used models
BOOT - (Build-Own-Operate-and-Transfer) Model
BOO- (BUILD-OWN-AND-OPERATE) MODEL
BOT (BUILD-OPERATE-AND-TRANSFER) MODEL
JOINT VENTURE MODEL
19. BOOT (Build-Own-Operate-and-Transfer)
Model
Here the private partner undertakes to build,
operate, maintain and then transfer the asset to
the government. The assets are transferred at
the end of the contract period. The private
partner does the designing, development and
implements the project.
20. BOO (BUILD-OWN-AND-OPERATE)
MODEL
In this model, the selected partner designs, develops
and implements the project, most often, entirely at
its cost and operates the system for a specified
period. Here transferring of ownership is not
included.
21. BOT (BUILD-OPERATE-AND-TRANSFER)
MODEL
In BOT model the private partner builds, operates
and delivers the service for a specified time
period under an agreement.
Sometimes the Private entity provide some or all
of the financing and recovers the entire cost along
with the interest from collection of user
utilization during the agreed period.
22. JOINT VENTURE MODEL
In this model, an SPV (Special Purpose Vehicle) is
formed to undertake the e-Governance project and
/or to provide e-Services. The joint venture can be
led by the government or by the private partner
depending upon the strategic nature and sensitivity
of the domain.
23. PPP CHALLENGES
It requires greater consideration and specification of
contingencies in advance.
PPP projects often cover a long-term period of
service provision. Any agreement covering such a
long period into the future is naturally subject to
uncertainty, more in case of Information Technology.
During the Operational and maintenance phase of
the projects the nodal agency have to monitor the
performance of the system against the standards.
25. BANGALORE ONE (B1) – KARNATAKA
B1 is a PPP between the State of Karnataka
and private consortium of CMS Computers
Ltd. and Ram Informatics. B1 project aims to
provide the citizens of Karnataka, all G2C and
G2B One-Stop services
BUSINESS MODEL
• B1 is the model is similar to BOOT.
26. AP ONLINE
AP online is one of the pioneer e-governance
projects in Andhra Pradesh developed by
GoAP in Partnership with Tata Consultancy
Services.
BUSINESS MODEL
Joint Venture Model between Andhra Pradesh
Technology Services and Tata Consultancy
Services.
27. PASSPORT SEVA PROJECT
Passport Seva Project (PSP), implemented in
BOOT model. Tata Consultancy Services, (TCS),
a leading IT services, business solutions and
outsourcing firm, has a signed the deal with
the Ministry of External Affairs (MEA),
Government of India after the bidding
process.
28. SARITA - Stamps & Registration Information
Technology based Administration
SARITA is a G2C project with an aim to design,
develop, and implement a computerized
application for Registration of documents in
Maharashtra
Business Model
BOT
29. Conclusion
PPP has emerged as a viable model for e-
Government implementation
PPP is especially recommended for developing
countries
Every PPP needs to be customized to the
particular requirements in each country
The adoption of PPP in e-Government will only
increase with time.
