ppp practice an emerging business unit for ict company

Public Private Partnership Practice as a New Profit Center for ICT Company

© BCausE Enterprise Pvt Ltd 2014

Content

• Demystify Public Private Partnership( PPP) – General Overview

• What is the Political - Economical theory behind this framework

• The Building Blocks of PPP Ecosystem – Lateral and Vertical Value Player

• PPP Operating Life cycle phases – Potential for BTGS

• Econometrics – PPP Spend and Sector

• What this “Frontier – PPP” exploration can lead to


Does the company Leadership align with below attitudinal Characters

Stimulate : The Para - Economic Senses “For Profit” institute before decide to

“make pursue or not”

Stimulating Metrics Attributes

Organisational and sponsor's/driver's interest served

and satiated

Participation with tangible give away and take away

within the turn around tolerance level of the role

players

Ensure dependency on us in every utility desired/

wanted out as per the maslow's hiearchy of needs

Pride of doing the work in hand with diligence and

integirty, with intent to stay progressive and

aggressive

Future fear upon the need to be defensive upon not

performing the task

Launch in multiple geographies/domains

simultaneously

Rise after fall - Consider the hurt out of fall is

random and adhoc ,while not a pradignm/pattern.

Stay invested and keep promoting for an extended

period.

Believe - There are multiple means to the end .

Indulgence

Appetite

Perseverence


Demystify Public Private Partnership( PPP) – General Overview

• PPP is a procurement framework by Government. • It is not Managed service , or divestment by the government . • Build and manage utility from the Public asset which otherwise lies dormant or under-utilised and under delivered . Eg . Public Asset :

Coastal belt for Port & harbour- through Port & Electricity ; Health and welfare of Citizen – Education and Health ; Air wave spectrum – Telecom and DataCom; etc

• It is a partnership where policy guides the ownership distribution of Equity and liability(Risk) between Government and the Operator . • Proponents for PPP strategy – a) Stretched government liabilities in build &delivery. b) Pro-economic liberalization stand to be industry friendly. c) Infrastructure asset build benefits,depending on too many non verifiable variables at the start of design . d) Risk owning for Operators with the incentive of concession benefits. e) Design , build delivery and operational limitation by the public machinery and policies. •


Social Welfare

Partner Economic welfare

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PPP Process Phase© BCausE Enterprise Pvt Ltd 2014

Overarching Objectives of PPP based partnership

• Involve Private skill & capability in legislature and governmental obligation to social economical upliftment. • Harness private sector efficiencies in asset creation, maintenance and service delivery • Bundling design, build and operation to a single entity eliminates the cracks arising out of no possibility of non verifiable variables at the early phase of program. • Provide focus on life cycle approach for development of a project, asset creation and maintenance over its life cycle. • Create opportunities to bring in innovation & technological improvements • Enable affordable and improved services to the users in a responsible and sustainable manner.

Reference : 1)Draft national PPP doc of DoEA,India

2) David Martimort & Jerome Pouyet, journal of economic lit. © BCausE Enterprise Pvt Ltd 2014

The Building Blocks of PPP Ecosystem Lateral and Vertical Value Player

Central & state Sectorial Ministry

Policy maker

Planning Commiss

PMO Legal

International treaty/

IMF/ADB

PPP Implementation agency

Technology & Industrial consultant

Bidding & sourcing agency

Financial & Process analyst

Operator

Technology & Solution provider

Manpower & Resource

Banks & Financer

Domain partners

Lateral Value Player

Ver

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ICT can provide service through - ICT Advise - ICT Hardware and Software product Portfolio


Federal Structure of the PPP Agency : The Implementer

PPP Agency Central

Department of Economic Affairs

Aviation

Ministry

Road & HW

Minsitry Power &

Energy

HealthCare

ministry

Education

ministry

SeaPorts

ministry

Central

PPP Agency AP

PPP Agency Kerala

PPP Agency Karnataka

PPP Agency Tamil nadu

PPP Agency Gujrat

PPP Madhya Pradesh

PPP Agency Rajasthan

PPP Agency Maharastra

PPP Agency Punjab

PPP Agency Haryana

PPP Agency Uttarprades

h PPP Agency J&K

PPP Chattisgarh

PPP Himachal Pradesh

PPP West

Bengal

PPP Assam


•PPP Operating Life cycle phases – Potential for ICT


ICT Role

Econometrics – PPP spend

Highlights

• Fifth consecutive year , India did drove the Private participation in PPP based project in south Asia till 2010. • 102 Projects got financially or contractually closed in the year 2010, involving investment commitments of US$ 47 Billion • Projects implemented during 1990 to 2009, attracted fresh investment/spend of US$ 26.5 Billion • 2010 saw 72 % more investment and 70 % more projects than 2009. • India implemented 94 new projects in 2010 ,of an investment/spend allocated to US$ 71.9 Billion • Sectors which are drawing Private participation and govt decided for PPP in India are

- Roads & Transportation - Health Care - Airport - Power & Energy - Sea Ports & Coast belt - Education & Tourism - Irrigation and Sewage

Source: PPI reports from world bank PPI database © BCausE Enterprise Pvt Ltd 2014

PPP Model Gaining momentum in Emerging and developing economies Econometrics


Increase in Investment across world – implies PPP model success and acceptance


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Da

ta R

ate

Low HighMedium

Integrity

Da

ta t

ran

sa

cti

on

High Sea Near Port Harbour

Proximity to

Coast

Technical

Maint.

Training &

qualification

Technical Repair

&

Replacement

Reporting &

Navigation

(operational)

Emergency

Messaging

Scanning & Supply

Chain logistics

(Multi operator

Integration)

Port to Port Comm

Ship to shore Comm

Server/Client

Application

High

Medium

Low

WICAN

Wireless Coastal

Area Network

ICT Involvement – In Port/Marine Business Value chain

Satellite

Broadcasting


What this Frontier – PPP exploration can lead to

• Add to Pipe-Line big large and solution based prospects. • Considering this projects are long term and Big in Nature

the cost of acquisition of for such project can justify the capability built internally & yield

New skills on new technology and domain , can be reused in other vertical and domain

Potential to have the Intellectual Property rights both in terms of Technology & Business

High Potential of Governmental recommendation for Partner countries under Treaty

• Easy access to Fund both equity and debt

• Contractual agreement with north bound vendors with better control and credit rating.



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ppp practice an emerging business unit for ict company

Business

ppp strategy

btgs econometrics ppp

frontier ppp exploration

overarching objectives

vertical value player

ict bcause enterprise

draft national ppp doc

public asset