Public Private Partnerships are collaborative arrangements between government and private sector entities with the aim

of introducing private sector resources and expertise to provide public infrastructure, community services and related services. The investment, risk, responsibility and profit is shared between both the parties. PPP in e-government provide potential solutions to the constraints faced by government.

PPPs are effective in helping governments respond quickly to the demand of public goods and services. PPPs help governments to deliver more with less. These are politically safer than privatization. They help in tapping into the skills of the private sector to deliver government in a more professional manner, which is essential for providing government services efficiently.

Technical Issues

Financial Issues
Period of the contract

Conflict management in case of contractual default

Ownership of public information

Human resources development

IPR Sharing

Traditional Procurement

PPPs Concessions Management Contracts Joint Ventures Design Build Finance and Operate Part-Privatization Private Finance Build Operate Transfer

Privatization

More Private Less Public Control

Service Compos ition

Computational Infrastructure (Servers and Storage) Networks and Connectivity

Ownership issue is one of the biggest challenges faced by PPP contracts today. The list below shows some dimensions where ownership of risk and reward should be decided. Technology Dimensions-includes the risks involving the network, database server, hardware, software, OS, data, database etc. Geographical Dimension-ownership of asset at different geographic locations. Force Majeure-responsibilities which may arise due to unforeseen circumstances like acts of nature. Financial Dimensions-focuses on the financial issues of the PPP. It specifies the responsibilities for financial issues like revenue model, user fee, revenue supported by Gov. etc.

Event Based Dimensions-includes all the penalties. Organizational Dimensions-training of work-force and recruitment, payment of salaries and all other liabilities. Monitoring and Evaluating Dimensions-Auditing and financial management, inspection of the implementation, meeting deadlines to operate the initiative.

PPPs are complex and its procurement process is even more complex. Government need to demonstrate greater understanding and political will, develop appropriate policy and legislative frameworks where required and commit resources to developing institutional capacity. PPP Rating-it is important to have a rating agency for rating the private players and PPP contract. These ratings facilitate selection of appropriate partners and also in unlocking the value of the PPP by better valuation in capital market.

Rating of Private Players-Having a rating of private parties based on their past behavior would be useful while shortlisting of the private parties in a PPP initiative. This Rating should be done on the basis of the following parameters Financial stability Quality of service Timely delivery of service Adherence to the terms and conditions Abiding by the constitution

Rating of PPP Contract-This rating helps in unlocking the value of the PPP initiative in capital market. In most cases, a PPP initiative in e-Government gives a monopoly to the PPP consortium and hence there is tremendous value that is created through PPP. The absence of an agency that could rate PPP initiative, makes it difficult for firms to go through conventional rating agencies. In the UK Fitch ratings has proposed a mechanism to rate PPP contracts. The various parameters proposed in Fitch ratings are: Construction risk Credit risk of player Market risk Legal framework and government support Financial and sensitivity analysis Operations/performance risk

In order to protect the interest of all the stakeholders involved in a PPP project, there is a clear need for some rules and regulations and hence there is a need of a single regulatory authority to see these issues. This kind of authority is needed to provide a framework which encourages private players to enter into such contracts and to protect the interest of all the stakeholders of such projects. This authority should ensure that the contracts should not put undue pressure on the private player in terms of unreasonable penalties. Government should be made equally responsible and accountable for any lapse on its part.