public-private partnerships and corporate social responsibility © vinod a. iyengar a-505 & 506,...

Public-Private Partnerships and Corporate Social Responsibility©

Vinod A. Iyengar

A-505 & 506, UNESCO Apt; 55, I. P. Extension; New Delhi – 110 092 (India)

Email: [email protected]; Mob: +91-98-18-434418

What is Public-Private Partnership?

Long-term, contractual partnership between government agencies & private parties (corporations, NGOs, etc.)

For:infrastructure facilities and/or

services traditionally provided by the public sector

Involves:financing, designing, implementing

and operating PPP projects2Vinod A. IyengarMay 2012

Why PPPs?

To improve implementation, which suffers due to (among other reasons):oLack of motivation/shared visionoRed-tapeoPoor management skills

Resulting in (among others):oDelays and cost escalationsoLeakages (corruption)oCancellation of projects

3Vinod A. IyengarMay 2012

GOI definition

“The PPP project means a project based on contract or concession agreement between a government or statutory entity on the one side and a private sector company on the other side, for delivering infrastructure service on payment of user charges.”


PPP models popular in India

1) BOO (build, own, operate), in which:a) Government provides

land/building/funds/etc.b) Private partner brings-in money,

management expertise, technology, people and equipment

c) Private partner operates the enterprise

2) BOOT (build, own, operate, transfer)Note: ‘BOOT’ similar to ‘BOO’ but, in this case, the project is eventually transferred to government


PPP roadmap

ExecutionAcquiring personnel & resources, deployment, project

management

Formation of delivery vehicle

Partner identification, allocating responsibility, contract signing, etc.

Feasibility study & detailed project report

Beneficiaries, resources, know-how, process, cost, funds-flow, benefits


Popular PPPs in India

Infra-structure

Healthcare

Education

• Airports• Roads,

bridges• Waste mgt.• Hospitals• MMUs• Telemedicin

e• Schools• Distance

edu.• Livelihoods


Corporate Social Responsibility & PPPs - what’s in it for corporations?o High visibility among

stakeholdersoPlatform for displaying mgt. and

other abilitiesoChance to showcase its social

commitmentoConstant publicity throughout PPP’s

duration

o Opportunity to scale CSR at low cost(Government funds and other resources)

o Occasion to try out new technologies


Why CSR?

To sustain a corporation’s activities and processes

What is ‘sustainability’?The capacity to endure in any opposing or fatal condition

(Note: This is the most important asset of any successful enterprise)


CSR roadmap

Study

•Identification of stakeholder need

•Feasibility study

•Project report

Partner

•Identification of partners (e.g., Govt./NGOs/etc.)

•Agreeing on resources and responsibilities

•Contract

Deploy

•Acquiring resources

•Deployment

•Project management


CSR study - InvestorsInvestor uncertainty because of:

◦Increased competition in traditional business from: New companies doing same business

cheaper Foreign companies (some existing

customers) setting-up shop in India Lower profits Decreasing growth rate vis-à-vis share-

value


CSR study - PersonnelInsecurity among personnel, who

feel:◦They are missing out on new

opportunities◦Colleagues were learning new

technologies, gaining experience and earning more

High attrition-rates in trained people ◦Bench-strength depleting as people

seek better jobs◦Experienced people enticed by

competition


CSR study – Customers & Suppliers(Other than contractual issues)CongestionPollutionHealth issuesFeeling of insecurity


CSR study - GovernmentUnable to provide/ensure:

◦Quality education, training and jobs◦Basic civic amenities◦Effective

law-enforcement/emergency services

◦Deliver consistent quality healthcare

To ensure above, governments willing to:◦Take help from corporates and NGOs◦Partner with them where necessary◦Provide relevant resources


CSR study - Society

Perception that IT sector responsible for:Flood of over-paid youngstersSpiralling land, building and

food pricesIncreased crowds, traffic and

pollutionFalling health and utility

servicesSlums, beggars, and street-

childrenInflux of shady characters


CSR study - Analysis

Our sense…Influx of people/problems due to

poverty:◦ Lack of education and technology◦ Limited livelihood opportunities◦ Poor health and emergency services◦ Increased dependence on

moneylenders◦ Helpless feeling - running hard but

getting nowhere 16Vinod A. IyengarMay 2012

Solutions

Off-setting misconception & reversing tideLimit influx of people into cities

through:◦ Quality distance education &

technical help◦ Improved livelihood opportunities◦ Innovative health service delivery

Improve urban quality-of-life through◦ ‘Defensive driving’ and traffic

management◦ Innovative health, police, and other

services◦ ‘Green energy’ technologies


OpportunityRealization addressing the

problems:◦Opportunity to come up with new

products◦New businesses & markets boon for

investors◦Bench-strength satisfaction◦Needs of customers, suppliers &

society met◦Assist Central & State Governments

and people of India18Vinod A. IyengarMay 2012

Public-Private Partnership Examples

Emergency Services (15-Aug-05)• Police, fire, and medical

emergencies• Services available through toll-

free number• Operational in 11 states (2 in

pipeline)• Capital: between Rs. 15 and 50

crore/state• 95% funds from NRHM, 5% from

Satyam

Health Services (15-Aug-07)• 24 x 7 health advice over the

telephone• Mobile medical units reach the

‘last mile’• Doctors, psychiatrists and ASHA

workers• Capital over Rs. 250 crores (in AP)• 95% funds from NRHM, 5% from

Satyam 19Vinod A. IyengarMay 2012

Highlights (AP)

99.8% calls answered in two rings React to more than 4,250 emergencies per day

(Medical: 96.5%, Police: 3.0% and Fire: 0.5%) More than108 lives saved/day (over 1 lakh lives

saved so far) 582 ambulances, 15 PRICE vehicles Response time (Minutes): 14 (urban areas) & 22

(rural areas) 100% virtual handholding for ‘critical’ and

‘serious’ cases 3,331 private hospitals in the network ‘108’ brand awareness – 75% 4,400+ passionate associates

(Support: 5%, ERC: 5%, Ambulance: 90%) 20Vinod A. IyengarMay 2012

Highlights (AP)

Catering to over 80 million people‘104 Advice’ (Telemedicine)

◦ 24x7 via toll-free number (104)◦ 1,800 doctors, counselors, and healthcare

specialists◦ More than 60,000 calls per day (90% from

rural areas)

‘104 Mobile’ (Mobile medical units)◦ 475 MMUs that service people at the ‘last

mile’◦ 1,450 trained medical technicians◦ 750 ASHA (Accredited Social Health

Associates)


The Model


public-private partnerships and corporate social responsibility © vinod a. iyengar a-505 & 506,...

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