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e-Governance & PPPs: why PPPs?

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

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e-Governance & PPPs: why PPPs?

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  1. 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

  2. PPP feasibility depends on revenue sources: e-Bharat example

  3. 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)

  4. 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

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