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E-Governance for the Urban Sector : Challenges and Opportunities

E-Governance for the Urban Sector : Challenges and Opportunities. Sanjay Saxena Managing Director Total Synergy Consulting (P) Ltd. 12 th November 2008. Context and Background. 1. 2. Urban Sector Overview (E-Governance Perspective). 3. MPUSP: An Example. 4.

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E-Governance for the Urban Sector : Challenges and Opportunities

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  1. E-Governance for the Urban Sector : Challenges and Opportunities Sanjay Saxena Managing Director Total Synergy Consulting (P) Ltd. 12th November 2008

  2. Context and Background 1 2 Urban Sector Overview (E-Governance Perspective) 3 MPUSP: An Example 4 Key Issues and Learnings TSCPL Profile 5

  3. Vicious circle of low resources of Local & State Governments Background Loss of control & priority setting by Centre Central viewpoints & schemes thrust upon States Role of State reduced to Implementer of Central Schemes Central & State Govt. Increased pressure to control expenditure & increase revenues Poor Administration and Collection of Local Taxes Increased Dependence on Central Funds Low Motivation and Capacity of Staff Local Govt. Poor Financial Condition of Local Govt. Poor Level of Services Provided to the Citizens Low Willingness of People to Pay Local Taxes

  4. The urban context and challenge • Global trend towards urbanization • Increasing poverty and insecurity • Unsustainable urbanization patterns requiring preventive and adaptive approaches • Limited local government implementation capacity is the main bottleneck • New approach to ‘good governance’ • Local authorities as ‘enablers’ • Emphasis on partnership for service delivery • Focus on inclusiveness of access to city benefits and decision making • Promising innovations, but need to scale up “The key ingredient to realizing more inclusive cities is neither money nor technology, nor even expertise or legislative change (although all these are important), but good urban governance.” The Global Campaign on Urban Governance, Concept Paper, 2nd Edition, March 2002

  5. Background Changing roles of Governments

  6. National E-Governance Plan • “Make all Government services accessible to the common man in his locality, through common service delivery outlets and ensure efficiency, transparency & reliability of such at affordable costs to realize the basic needs of the common man” • Funding sources • 3% of Existing ministry budgets • Existing State funds • Additional Central Assistance (ACA) from GOI to States • External financing from WB and other donor agencies • Private financing through PPPs • Usercharges • What is NEGP • Key part of National development plan • Goal: Improving government service delivery through on-line delivery at local service centers • Led centrally and implemented locally • Total cost USD 4 billion and will be implemented over 8 year period • Allocation and Expenditure of e- Governance: Upto Sept 2008 (in Million Rs) 7

  7. NEGP Matrix

  8. E-Governance Budget Estimates (in Million Rs)

  9. Jawaharlal Nehru National UrbanRenewal Mission “The JNNURM aim is to encourage reforms and fast track planned development of identified cities. Focus is to be on efficiency in urban infrastructure and service delivery mechanisms, community participation, and accountability of ULBs/ Parastatal agencies towards citizens.” Objectives: Integrated development of infrastructure services Establishment of linkages between asset-creation & asset-management Ensuring adequate funds Planned development of identified cities Scale-up delivery of civic amenities Provision of utilities Focus on urban renewal program for the old city areas Provision of basic services to the urban poor • Duration and Funding : • 7 yrs from the year 2005-06. INR 50 billion

  10. IF the cities and states commit to these reforms The JNNURM Framework GoI will fund these Investments Accounting reforms E Governance Property tax with GIS User charges Services and funds for the poor Land related reforms Decentralization Community participation Disclosure laws Urban renewal Water supply Sanitation Storm water drains Transport projects Parking lots Heritage areas Preservation of water bodies An incentive fund

  11. Ministry of Housing and Urban Poverty Alleviation (MOHUPA) Integrated Low Cost Sanitation Scheme (ILCS) 1% of total central allocation for development of Monitoring Sys, MIS, Capacity Building & IEC components. Building Materials and Technology Promotion Council (BMTPC) First ever Geographical Information System (GIS) based landslide inventory map and landslide hazard zones maps of India prepared Urban Statistics for HR and Assessment (USHA) Development of MIS and knowledge repository JNNURM 14 Cr allocated to meet the expenditure for preparation of appraisal and project reports and Organization of training workshops, seminars capacity building and IEC related activities. Estimate of 8 Cr. given in the 11th five year plan for MIS of Urban basic services. SwarnaJayantiShahariRozgarYojana (SJSRY) Integrated Urban Poverty Monitoring System and MIS system developed Skills training and capacity building of the poor undertaken. Focus on gender budgeting in training modules for Capacity Building

  12. Ministry of Urban Development (MoUD) Projects National Urban Information System (NUIS) Scheme GIS Database: Digitised Maps for 1:10,000 and 1:2000 scale for 137 towns from Satellite and aerial platforms. Capacity Building: About 16 training programs for each three levels were organized Accelerated Urban Water Supply Programmes (AUWSP) Training in Public Health Engineering and Research in Monitoring and Management Information System (MMIS) was implemented.

  13. Asian Development Bank Indian Investment • Total Loan Investment 2007 $1.2 Billion • Potential Loan Investment 2008-2010 $3 Billion • Urban Development funding totalling $800 Million in 2007.

  14. World Bank Indian Investment • New lending in 2007-2008 $2.7 billion.  • 60 active projects with an ongoing commitment of approximately $14.3 billion. • Urban Development comprises at least half of total current investment in India. • ICT portfolio around USD 600 million

  15. Japan Bank for InternationalCooperation • Total Indian Loan Investment 2007 $2.25 Billion

  16. Dept . For International Development Indian Investment: • 2002-2007 Over £1 Billion • 2008-2011 £825 Million Planned • Urban Development investment over £266 Million

  17. Context and Background 1 2 Urban Sector Overview (E-Governance Perspective) 3 MPUSP: An Example 4 Key Issues and Learnings TSCPL Profile 5

  18. Madhya Pradesh Urban Services for the Poor (MPUSP) • MPUSP - a partnership between GoMP and GoUK’s DFID • 100% grant funded – total budget aprox GBP 41 million • 5 years duration (2006 to 2011) • Initially Four Cities – Indore, Gwalior, Jabalpur and Bhopal • 10 more cities added in 2008

  19. Transparency & Accountability Efficiency & Effectiveness Responsiveness & Sustainability Planning & Financial Reform Policy Reform & Partnerships Process & Personnel Reform E-Governance Madhya Pradesh Urban Services for the Poor MPUSPRole of E-Governance Improved Urban Governance & Management for more Inclusive Service Provision

  20. MPUSP Components and Initiatives • State Level • IT Equipment and Infrastructure Procurement • Urban Sector MIS and M&E System • UADD Website Development • ICT Capacity Building & Training • State Data Centre • Framework for Citizen Services Centres on PPP model • UADD Emailing system • ULB Level • IT Equipment and Infrastructure Procurement • Municipal Administration System( MAS) • Municipal GIS (MGIS) • Poverty Information System • Citizen Service Centres (CSCs) • Vehicle Tracking and Management System (VTMS) • Biometrics system for urban poverty programmes, Municipal Employees Attendance, Pensioners database, etc. • Training and Study visits • Data Entry and digitisation • Barriers to Access Study Finance & Accounting OD & HR Development Social Development E-Governance ICT / MIS / GIS Urban Planning Engineering & Infrastructure Project Management

  21. MPUSP Assistance Madhya Pradesh Urban Services for the Poor MP Urban Services for Poor Total e-Gov Assistance Approx. 4 million USD Software Hardware Services Training

  22. MPUSP : Components of E-Governance Technology People Process Policy Partnerships Hardware, Connectivity & Networking Infrastructure Systems & Application Software Data Compilation & Database Creation Consultancy and Technical Support Services

  23. MPUSP : Components of E-Governance Technology People Process Policy Partnerships Change Management & Orientation Partnership Approach & Effective Deployment of Staff Regular, Intensive & Extensive Training Role of Consultants & IT Professionals

  24. MPUSP : Components of E-Governance Technology People Process Policy Partnerships Business Process Reengineering (BPR) Redefining Systems & Procedures Redefining Roles & Responsibilities Revising Operation Manuals, Rules and Guidelines

  25. MPUSP : Components of E-Governance Technology People Process Policy Partnerships E-Governance Policy, ICT Policy, Telecom Policy & Security Policy Cyber Laws and Right To Information Act (RTI) Government Rules & Acts HR Rules & Service Conditions

  26. MPUSP : Components of E-Governance Technology People Process Policy Partnerships Revenue & Business Model Financial, Technical and Institutional Framework Information & Knowledge Sharing Crafting & Steering Contracts

  27. MAS Overview Geographic Information System (GIS) Citizens Interface System Municipal Management Information System Transaction Processing System (TPS) Financial Management System Revenue Management System Civic Services Management System Back Office Management System Assets Management System H.R. Management System Inventory Management System Poverty Management System Accounts Finance Treasury Auditing Budgeting Solid Waste Management Health Education Engineering Water Supply Sewerage & Drainage Planning & Design Lighting & Electricity Projects & Development Parks & Gardens IT GIS Law Secretary Press & I&PR Vigilance & Corruption control Estate Management Other Assets like Vehicles, Plant & Machinery, etc HR Database Payroll Provident Fund Pensions Cell Procurement Stores Supply Property Tax Building Fees Trade License Fees Water Charges Drainage Observation Fee Leased Properties Market Stallage Advertisement and car parking Amusement Tax User Taxes Poverty Database Bustee Services Programs & Schemes

  28. Hardware : Pvt. Kiosk Operator Software : MP Online Manpower : Kiosk owner Who Pays : User pays ( Rs 10 – 15 per transaction paid by the citizen to the kiosk operator who pays to MP online, who then pays to BMC ) Kiosks All MCs & ULBs CITIZEN Hardware : User / Citizen Software : MP Online Manpower : User / Citizen Who Pays: User pays ( Rs 10 – 15 per transaction paid by the citizen to MP online by credit card, who then pays to BMC ) MP Online (www.mponline.org) CITIZEN Hardware : BMC / MPUSP Software : MP Online Manpower : BMC Who Pays: Free ( No additional fee is charged from the citizen ) CITIZEN Citizen Service Centers Providing Different Options to Citizens

  29. Context and Background 1 2 Urban Sector Overview (E-Governance Perspective) 3 MPUSP: An Example 4 Key Issues and Learnings TSCPL Profile 5

  30. Process Policy e-gov People Technology Key Issues and Learnings E-Governance requires process, policy & organizational and technological transformation Vendors tend to focus exclusively on technology which is only 20% of the solution

  31. Key Issues and Learnings Open Source software Vs Proprietary software (Source: Barracuda Networks) “Open Source” software (not necessarily “Free” software) has a higher appeal for customers, specially government sector.

  32. Key Issues and Learnings Customers want the most “workable” solution instead of “state of art” technology Need to understand the ‘business needs’ of the customers not the ICT needs.

  33. Key Issues and Learnings Customers are becoming better informed and hence more demanding. Customer engagement model has to align with customers’ evolving needs and expectations. “Partners” as opposed to Vendors.

  34. Key Issues and Learnings To laymen, Microsoft is predominantly seen as a ‘personal productivity’ software vendor, not as a provider of business solutions for the public sector. Need for improving customer awareness and perception management about ERP / CRM / SCM / DSS suites.

  35. Key Issues and Learnings Need to address the bottom of the pyramid Need for designing solutions to address the digital and hence the economic divide. Insanity is doing the same thing over and over again, expecting different results. - Rita Mae Brown

  36. Counter Call Centre Internet E-Mail Mail Kiosk Integrated Citizen Service Centre Integrated Systems & Procedures Service Providers Suppliers & Partners Key Issues and Learnings Customers want ‘best of breed’ and integration ! Need for improved vendor collaboration with each other.

  37. Don’t promise what can’t be delivered. Improve customer support. Key Issues and Learnings • Extent of Software Piracy in BRIC FY 2007 • India 69% • China 82% • Russia 73% • Brazil 59% • (Source – Business Software Alliance Study) Politicians are the same all over. They promise to build a bridge even where there is no river. - Nikita Khrushchev Customer support still remains an important challenge.

  38. Key Issues and Learnings Extensive handholding and piloting support required to create flagships and champions The art of taxation is in so plucking the goose as to obtain the maximum amount of feathers with the minimum amount of squawking. Ancient Chinese proverb Need for long term commitment.

  39. Key Issues and Learnings Customers Side Vendors Side Significant investments required for business development Easier to sell products than solutions Preference for outright sales as opposed to transaction fee Position bespoke or COTS solutions Challenges of localisation and customization – heterogeneity. • Preference to spend on hardware • Multiple decision makers • Frequent changes in senior management • High risk – high return projects – need champions • Prefer PPP – “User Pays” / BOO model • Need to address unique needs. Vendors need to work with ‘Connectors’ and ‘Mavens’, in addition to the Salesmen. 40

  40. Context and Background 1 2 Urban Sector Overview (E-Governance Perspective) 3 MPUSP: An Example 4 Key Issues and Learning's TSCPL Profile 5

  41. TSCPL Profile Founded in 1988, Total Synergy Consulting Private Limited (TSCPL) provides management and IT consultancy and services to a range of national and international clients in both the public and private sector. Executed over 100 ICT and management consultancy projects for the Public Sector Interdisciplinary team of over 200 staff and consultants (national as well as international).

  42. Civil, Fiscal & Financial Reforms Social Development E Governance Performance Evaluation • Governance • Functional Reviews • Capacity Building • Financial Restructuring • Public Private Partnership • Poverty Reduction • Community Mobilization & Development • Participative Rural Appraisal • ICTs • MIS • GIS • E-Business • ERP/CRM/SCM • BPR • Procurement & Product Management • Monitoring & Evaluation • SWAP • Benchmarking • Incentive Systems • Report Card • Institutional Development • Human Resource Development • Micro Finance • Market Scan TSCPL : Core Practice Areas

  43. TSCPL Public Sector Clients

  44. A Presentation S 85 Greater Kailash II, New Delhi 110048 INDIA TeleFax : +91-11-29219397 / 41435754 Mobile : +91-9811083474 Email : sanjaysaxena@tscpl.com Home Page : www.tscpl.com

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