ppp practice an emerging business unit for ict company
DESCRIPTION
The most befitting Socio- Economic Model is one that provides Open Collaborative Consumption. Few examples is Internet, Telecom, Electricity, Cooperative milk, Hospital. To uphold and sustain such model, a breeding stage can only be realised through PPP Framework.TRANSCRIPT
Public Private Partnership Practice as a New Profit Center for ICT Company
© BCausE Enterprise Pvt Ltd 2014
Content
• Demystify Public Private Partnership( PPP) – General Overview
• What is the Political - Economical theory behind this framework
• The Building Blocks of PPP Ecosystem – Lateral and Vertical Value Player
• PPP Operating Life cycle phases – Potential for BTGS
• Econometrics – PPP Spend and Sector
• What this “Frontier – PPP” exploration can lead to
© BCausE Enterprise Pvt Ltd 2014
Does the company Leadership align with below attitudinal Characters
Stimulate : The Para - Economic Senses “For Profit” institute before decide to
“make pursue or not”
Stimulating Metrics Attributes
Organisational and sponsor's/driver's interest served
and satiated
Participation with tangible give away and take away
within the turn around tolerance level of the role
players
Ensure dependency on us in every utility desired/
wanted out as per the maslow's hiearchy of needs
Pride of doing the work in hand with diligence and
integirty, with intent to stay progressive and
aggressive
Future fear upon the need to be defensive upon not
performing the task
Launch in multiple geographies/domains
simultaneously
Rise after fall - Consider the hurt out of fall is
random and adhoc ,while not a pradignm/pattern.
Stay invested and keep promoting for an extended
period.
Believe - There are multiple means to the end .
Indulgence
Appetite
Perseverence
© BCausE Enterprise Pvt Ltd 2014
Demystify Public Private Partnership( PPP) – General Overview
• PPP is a procurement framework by Government. • It is not Managed service , or divestment by the government . • Build and manage utility from the Public asset which otherwise lies dormant or under-utilised and under delivered . Eg . Public Asset :
Coastal belt for Port & harbour- through Port & Electricity ; Health and welfare of Citizen – Education and Health ; Air wave spectrum – Telecom and DataCom; etc
• It is a partnership where policy guides the ownership distribution of Equity and liability(Risk) between Government and the Operator . • Proponents for PPP strategy – a) Stretched government liabilities in build &delivery. b) Pro-economic liberalization stand to be industry friendly. c) Infrastructure asset build benefits,depending on too many non verifiable variables at the start of design . d) Risk owning for Operators with the incentive of concession benefits. e) Design , build delivery and operational limitation by the public machinery and policies. •
© BCausE Enterprise Pvt Ltd 2014
© BCausE Enterprise Pvt Ltd 2014
Social Welfare
Partner Economic welfare
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PPP Process Phase© BCausE Enterprise Pvt Ltd 2014
Overarching Objectives of PPP based partnership
• Involve Private skill & capability in legislature and governmental obligation to social economical upliftment. • Harness private sector efficiencies in asset creation, maintenance and service delivery • Bundling design, build and operation to a single entity eliminates the cracks arising out of no possibility of non verifiable variables at the early phase of program. • Provide focus on life cycle approach for development of a project, asset creation and maintenance over its life cycle. • Create opportunities to bring in innovation & technological improvements • Enable affordable and improved services to the users in a responsible and sustainable manner.
Reference : 1)Draft national PPP doc of DoEA,India
2) David Martimort & Jerome Pouyet, journal of economic lit. © BCausE Enterprise Pvt Ltd 2014
The Building Blocks of PPP Ecosystem Lateral and Vertical Value Player
Central & state Sectorial Ministry
Policy maker
Planning Commiss
PMO Legal
International treaty/
IMF/ADB
PPP Implementation agency
Technology & Industrial consultant
Bidding & sourcing agency
Financial & Process analyst
Operator
Technology & Solution provider
Manpower & Resource
Banks & Financer
Domain partners
Lateral Value Player
Ver
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ICT can provide service through - ICT Advise - ICT Hardware and Software product Portfolio
© BCausE Enterprise Pvt Ltd 2014
Federal Structure of the PPP Agency : The Implementer
PPP Agency Central
Department of Economic Affairs
Aviation
Ministry
Road & HW
Minsitry Power &
Energy
HealthCare
ministry
Education
ministry
SeaPorts
ministry
Central
PPP Agency AP
PPP Agency Kerala
PPP Agency Karnataka
PPP Agency Tamil nadu
PPP Agency Gujrat
PPP Madhya Pradesh
PPP Agency Rajasthan
PPP Agency Maharastra
PPP Agency Punjab
PPP Agency Haryana
PPP Agency Uttarprades
h PPP Agency J&K
PPP Chattisgarh
PPP Himachal Pradesh
PPP West
Bengal
PPP Assam
© BCausE Enterprise Pvt Ltd 2014
•PPP Operating Life cycle phases – Potential for ICT
© BCausE Enterprise Pvt Ltd 2014
ICT Role
Econometrics – PPP spend
Highlights
• Fifth consecutive year , India did drove the Private participation in PPP based project in south Asia till 2010. • 102 Projects got financially or contractually closed in the year 2010, involving investment commitments of US$ 47 Billion • Projects implemented during 1990 to 2009, attracted fresh investment/spend of US$ 26.5 Billion • 2010 saw 72 % more investment and 70 % more projects than 2009. • India implemented 94 new projects in 2010 ,of an investment/spend allocated to US$ 71.9 Billion • Sectors which are drawing Private participation and govt decided for PPP in India are
- Roads & Transportation - Health Care - Airport - Power & Energy - Sea Ports & Coast belt - Education & Tourism - Irrigation and Sewage
Source: PPI reports from world bank PPI database © BCausE Enterprise Pvt Ltd 2014
PPP Model Gaining momentum in Emerging and developing economies Econometrics
© BCausE Enterprise Pvt Ltd 2014
Increase in Investment across world – implies PPP model success and acceptance
© BCausE Enterprise Pvt Ltd 2014
10 kbps
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1 Mbps
Da
ta R
ate
Low HighMedium
Integrity
Da
ta t
ran
sa
cti
on
High Sea Near Port Harbour
Proximity to
Coast
Technical
Maint.
Training &
qualification
Technical Repair
&
Replacement
Reporting &
Navigation
(operational)
Emergency
Messaging
Scanning & Supply
Chain logistics
(Multi operator
Integration)
Port to Port Comm
Ship to shore Comm
Server/Client
Application
High
Medium
Low
WICAN
Wireless Coastal
Area Network
ICT Involvement – In Port/Marine Business Value chain
Satellite
Broadcasting
© BCausE Enterprise Pvt Ltd 2014
What this Frontier – PPP exploration can lead to
• Add to Pipe-Line big large and solution based prospects. • Considering this projects are long term and Big in Nature
the cost of acquisition of for such project can justify the capability built internally & yield
New skills on new technology and domain , can be reused in other vertical and domain
Potential to have the Intellectual Property rights both in terms of Technology & Business
High Potential of Governmental recommendation for Partner countries under Treaty
• Easy access to Fund both equity and debt
• Contractual agreement with north bound vendors with better control and credit rating.
© BCausE Enterprise Pvt Ltd 2014