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Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
Public Private Partnership
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Public Private Partnership


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    • 1. Public Private Partnerships (PPP)  How to Nail Pudding onto the Wall* Dr. Peter Parycek Chairman of the Austrian working group "eDemocracy & eParticipation” Austrian Federal Chancellery / ICT-Strategy A-1014 Wien, Ballhausplatz 2 (+43-1) 53115/2574 [email_address]
    • 2. Public Private Partnerships (PPP)  How to Nail Pudding onto the Wall*
      • Definitions & Models
      • PPP Potential
      • e-Government PPP Examples
      ( *Max Kaase, 1983)
    • 3.
      • Definitions & Models
    • 4. PPP Historical (USA)
      • 1652
      • The ‘Water Works Company of Boston’ (USA) is the first PPP – this private company sets up the public water supply in Boston
      • 1985
      • The National Council for Public-Private Partnerships (NCPPP) founded in the USA.
      • „ Public-private partnerships are a contractual arrangement whereby the resources, risks and rewards of both the public agency and private company are combined to provide greater efficiency, better access to capital, and improved compliance with a range of government regulations regarding the environment and workplace. The public's interests are fully assured through provisions in the contracts that provide for on-going monitoring and oversight of the operation of a service or development of a facility. In this way, everyone wins – the government entity, the private company and the general public.”
    • 5. PPP Historical (EU)
      • 1980s
      • In the UK, a number of public projects are supported by private companies – these are called Private Finance Initiatives (PFIs)
      • 1997-2000
      • In the UK there are 150 PFI Projects , involving GBP 12 billion.
    • 6. PPP Definition
      • An Anglo-American economic definition: a PPP is a formally regulated cooperation between the public and private sector.
      • Budäus and Grüning (1996) 6 defining characteristics:
        • Interaction between public and private sectors
        • Both partners want to achieve the same aim(s)
        • Using potential synergies
        • Process orientation
        • The partners retain their own identity and responsibility
        • The cooperation is formally regulated (contract)
    • 7. PPP Definitions
      • Central Tenets for a PPP:
        • Division of costs and responsibilities
        • Transparency as a central element of the contract
        • Sharing the risks
        • Sharing the responsibility
        • Sharing profits
        • Both partners contribute their assets
    • 8. PPP Definitions
      • A PPP is more than just know-how, it represents the development of public administration and requires real cooperation or collaboration between the partners involved
      • In legal terms, there is no definition of a PPP, it is still a „working concept“!
    • 9. PPP – Positioning
    • 10. PPP Models
      • The 4 models represent the extent to which the public administration is involved in the PPP.
      • Cooperation Model:
      • The „classic“ PPP: the public body has at least 51% of the share, this is typically used for public water and waste management projects.
      • BOT-Model (Build  Operate  Transfer):
      • The public task is handed over to a private company before any infrastructure is built, the stakeholders are not contractually bound to each other.
    • 11. PPP Models
      • TOT-Model (Transfer  Operate  Transfer):
      • The public body provides the infrastructure, whilst the private company is responsible for the operation, and is used, for example, with sewage management.
      • Franchise Model:
      • Private companies obtain a franchise with which they fulfill public duties, examples are highway tolls, airports and stadiums.
    • 12. 2. PPP Potential
    • 13. PPP Advantages for Citizens
      • Improved, high-quality and customer-friendly services
      • Citizen and public values are maintained
      • Taxpayers indirectly benefit from cost-savings
    • 14. PPP Advantages for Business
      • Use the available public administration resources, including political support, easier access to aid and financial support
      • Sharing the risks
      • Increased prestige
      • Involvement in long-term projects
      • Using the services developed more than once generates revenues at little further costs
      • The development of innovative services in cooperation with the public administration leads to new opportunities and new customers
    • 15. PPP Advantages for Public Administrations
      • Provide new services and develop new projects
      • Avoid restrictions normally imposed on public administrations
      • Financial transparency
      • Easier and quicker to finance a broad range of services
      • Sharing financial responsibility
      • Use the available business resources
      • Knowledge-transfer between the business and the public sector
    • 16. PPP Readiness
      • Awareness in the public sector
      • PPP Readiness:
        • Non-recognition
        • Avoidance
        • Competition
        • Acceptance
        • Cooperation
        • Collaboration
    • 17. PPP Issues
      • Legal requirements and social aspects (e.g. acceptancy)
      • Uncertainty for personnel and customers
      • Data protection
      • Complex organizational structure with a number of interests (which may clash)
      • Cannot force customers to use services
      • Difficult to calculate revenue
      • Cultural, regional differences
      • Lack of qualified private companies can lead to problems with the bidding process
    • 18. PPP Issues
      • Different legal settings and requirements in the public institutions
      • Legal restrictions (bidding, awarding contracts)
      • Different expectations and understandings regarding e.g. „productivity", soft skills, speed and planning of a project
      • Public institutions become dependent on private business, when problems arise these will usually be credited to the public institutions and decrease citizen acceptance
      • PPP financing can be very difficult and inflexible
      • Insecurity for one of the partners due to unforeseen events
    • 19. PPP Criteria for Success
      • Stakeholder motives and responsibilities have to be agreed on and regularly revised.
      • Advantageous if one of the partners has previous PPP experience
      • The planned PPP must be adapted to existing (work) contracts
      • Transparency: key data, processes and procedures
      • Fair sharing of the risks
      • Each partner must be able to bring in its assets
      • The public institution must adapt to a new changed role
      • Businesses must realise that public administration may be interested in generating revenue
      • Partners must not forget what their actual roles are: businesses are profit-oriented and the public administration is responsible for the public interest
    • 20. PPP Lessons Learned
      • The partners expectations have to be clearly stated and they have to agree on the aims of the project.
      • All stakeholders must be involved.
      • Speed is important.
      • Avoid belly-button-gazing , involve customers and define what services they want.
    • 21. 3. e-Government Examples of PPP
    • 22. PPP Examples - ID Bremen
      • ID Bremen GmbH (2000)focuses on providing specific IT-solutions for regional and local administrations ( )
      • City of Bremen (50.1%)
        • Safeguard jobs in the region
        • Encourage service orientation in Bremen
        • Access to personnel resources
        • Focus on core business
      • debis Systemhaus GmbH (49,9%)
        • Partnership with public administration
        • Gain ‘Know-how’ for the development of innovative IT-solutions in public administration
    • 23. PPP Examples – Digitales Nordrhein-Westfalen
      • An eGovernment Platform integrating regional and local administrations
      • Whilst the focus used to be on the citizens, this has now shifted onto internal administration and interaction with business ( )
      • Stakeholders and their interests
        • A number of public institutions and private companies are already involved, and the project is open for further partners.
        • Given a high number of partners, there are a many and different interests which have to be brought togethe.
    • 24. PPP Examples: Defence Electronic Commerce System (DECS)
    • 25. PPP Examples - Why DECS?
      • The Ministry of Defence (MOD) procures over £13bn of goods annually from 6,000 organisations ranging from large volume purchases of commodity items to small volume but highly sophisticated major equipment platforms
      • With such diversity in its supply-chain, the MOD's requirements for eBusiness services are varied and need to operate within a highly secure environment
      • The Defence Electronic Commerce Service (DECS) provides the eBusiness hub supporting the MOD's future eBusiness strategy by enabling secure Business-to-Business (B2B) services between the MOD, its suppliers and other external agencies, e.g. other Government Departments (OGDs)
    • 26. PPP Examples - Benefits of DECS
      • Automation of paper driven processes
      • Automated payment processes provide quicker payment to suppliers and reduction of internal administrative overheads
      • Provides management information
      • Supports other eBusiness enablers e.g. electronic catalogues
      • Share information with its suppliers in a secure environment
      • Provides multiple access for industry and OGDs (EDI,RLI, Internet, etc.)
      • Share information on a selective basis using stakeholder profiles and workflow features
    • 27. PPP Examples - DECS – Key figures
      • Over 26,400 orders per month
      • Up to £75 million per month in value
      • Over 655 of the MOD’s Trading Partners are connected to DECS
      • 5,800 users
      • 1,500 people use the DECS collaborative services
      • DECS Bulk Fuel Inventory Solution (BFIS) records the issue of up to 100 million litres of fuel per month
      • MOD users are located at over 200 sites, with increasing international presence.
    • 28. PPP Examples - Kommunalnet
      • is an Intranet for the 2358 municipalities in Austria. It is a working space for the employees of local authorities by providing one portal with all the information, communication, services and applications required to complete their work
      • The critical factors:
        • Political issues
        • Financing the project
        • Partner structure
    • 29. PPP Examples - Kommunalnet – Partner Structure
      • Project Partners:
        • Public Sector 51%
          • Austrian Association of Municipalities
          • Regional Association of Municipalities
        • Private Sector 49%
          • AG Kommunalkredit
      • Guiding Principle:
        • No IT partners in the consortium
      • Further Partners
        • IT companies
        • Business partners
        • Federal States
        • Provincal States
    • 30. Interested in cooperation:
      • Interoperability Framework
      • Good Practices : assessing application domains and providing demonstrations based on “EU Good Practices”
      • E-Government Academies : building knowledge, expertise and skills– establishing of eGovernment trainings
      • Knowledge Net : ensuring sustainability
    • 31. Upcoming Events
      • European eGovernment Masterclass 2008
      • eGovernment Training Methods & Tools
        • Discuss with European experts the best ways to support government change towards transparency and better services!
      • Danube University Krems
      • 18.08.2008 - 21.08.2008
      • E-Democracy Conference
      • Danube University Krems
      • 29.09.2008 - 30.09.2008
      • Cfp: 15. Mai 2008
    • 32. Thank you! Dr. Peter Parycek [email_address] (+43-1)53115/2574