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David McDermont International Governance Solutions david.mcdermont@intgov

David McDermont International Governance Solutions david.mcdermont@intgov.com. PUBLIC / PRIVATE PARTNERSHIPS in e-GP A Government View. ALTERNATIVE TITLES. MARRIAGES IN HEAVEN AND HELL Who's IDEA WAS THIS? PPP ’ s are becoming more common worldwide. Major successes and some failures

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David McDermont International Governance Solutions david.mcdermont@intgov

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  1. David McDermont International Governance Solutions david.mcdermont@intgov.com PUBLIC / PRIVATE PARTNERSHIPS in e-GP A Government View

  2. ALTERNATIVE TITLES • MARRIAGES IN HEAVEN AND HELL • Who's IDEA WAS THIS? PPP’s are becoming more common worldwide. Major successes and some failures Require real commitment and effort to set up

  3. Prethinking: Why a PPP? • Lack funding - reduced risk in return for benefits • Build expertise – opportunity for growth • Part of local business development strategy • Better outcomes by joint decision making • Building public private understanding • Government’s political exposure and impact on agenda Is a PPP the best way?

  4. Prethinking: What outcomes do we seek? • Better service outcomes (integration of components) • Build government/business expertise • Improved business capacity • Better understanding between the public and private sectors • Best use of resources

  5. Prethinking: Implications of PPP • Equal strength of partners or recognised contribution? • Out source functionality but not accountability • Risks to partners (Govt held to ransom, political exposure) • Funding and cost recovery X • Shared decision making • Clear roles are required • High level of trust • Relationship building • Ownership of IP • Possible future of PPP • How ready is our team?

  6. Funding Implications of PPP • System acquisition, modification or new development? • Options of initial funding, licence, transaction fees • Long term cost • Accommodating change in e-GP • Future royalties revenue opportunities

  7. Selecting a Partner • Use a public tendering process – don’t rush • Specify government objectives, outcomes and a preliminary view of how PPP would work • Private Sector Partner should have: • Previous PPP experience (good / bad) • Credibility in the market • Ability to adapt its services/technology • Culture of shared decision making, relationship building • Research and development capability • Management and staff stability • Onus on partner demonstrating capability and responding to government view of PPP

  8. Negotiated Issues #1 Expect very robust negotiation! • Accountability – government, not negotiable • Strategy and guidance (joint input) • Financial management and recouping of costs • Service management and reporting • Marketing/public relations • System and service development • Performance management (SLA & PPP)

  9. Negotiated Issues #2 • Ownership of current IP, and future IP from the PPP • Future service development and marketing opportunities • Skills transfer and development • Roles in the PPP • Working arrangements • Dispute resolution

  10. Contractual Arrangements • Focus on outcomes, clarity of roles, service specification SLA’s and working arrangements • Minimise punitive arrangements maximise problem solving • Withdrawal arrangements for termination, contract completion.

  11. THANK YOU QUESTIONS?

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