e-Governance & PPPs: why PPPs?

“longer-term contracts b/w public contracting authority & private provider for delivery of specified outputs” (typically combining investment and service provision)

Risk transfer to private sector– Commercial know-how & managerial skills– Best-practice technologies & innovation

Enhanced government accountability Entrepreneurship & local enterprise promotion Reduced need for public sector borrowing

PPP feasibility depends on revenue sources: e-Bharat example

Program Dimensions Central projects State projects Integrated

projects Citizen, through User fees for value-added services

MCA 21 Immigration

Land Records Property registration Municipalities Agriculture

Common Service Centers (kiosks) e-procurement

Government, through cost savings (identifiable costs now, not incurred in future)

Central Excise Income tax

Commercial taxes Food distribution & welfare programs Police

e-Biz

Sou

rces o

f R

ev

en

ue

Capital grants, through GOI budget or donor funds (for projects reflecting social objectives)

National ID

Panchayats Core & Support Infrastructure

Ex.1: Food distribution systems

Contracting authority: Food, Civil Supplies & Consumer Affairs Dept., Karnataka

PPP model: BOOT Output: Monitoring of distribution of subsidised food/

kerosene based on family size and poverty (eligibility database w/ ID card)

Revenue model: up-front registration fee plus share of cost savings ($200 mn estimated to be lost annually to fraud & mismanaged logistics)

Ex.2: Network of kiosks (RDS)

Contracting authority: Government of Karnataka PPP model: BOO Output: Provision of educational and government

services (land records, birth certificates, eligibility certificates, etc.) thru village-level kiosks

Revenue model: fees from services rendered (with connectivity provided by GoK); alternative with small increase in fees for privately-provided connectivity