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Transcript of Copyright ⓒ 2011 Samsung SDS Co., Ltd. All rights reserved | Confidential Public Private...
Copyright 2011 Samsung SDS Co., Ltd. All rights reserved | Confidentialⓒ
Public Private Partnerships in Korea: A Private Sector Perspective from Samsung
Public Private Partnerships in Korea: A Private Sector Perspective from Samsung
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e-Government Solutions
Table of Contents
1. Objective and Benefits of Private Public Partnership
2. Models of PPP
3. PPP in e-Government and Korean Case
4. Critical Success Factors of PPP
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e-Government Solutions
Benefits for Public Sector
Objectives & Benefits of Public Private Partnership
▶ Public Private Partnership is any contract between public and private sec-tor that share risks and returns of the projects
▶ Objectives of Public Private Partnership is to build Win-Win relationship that maximize efficiency of both government and private partner
• Increase of efficiency in Operation and Management
• Create new jobs in private sector • Timely adaption of new technologies• Focus more on government administration• Sharing Risk
Benefits for Private Sector
• Maintaining longer term relationship with government
• Creating new business opportunities that may generate long term profit
• Enrich capability in implementation, operation and management
• Sharing Risk
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e-Government Solutions
Models of Public Private Partnership
Management Contract
• Management control and authority are transferred to private sectors
• Asset ownership and commercial risk remains with the government
• Government can save time and focus its core services• Low risk and low return for private partners
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e-Government Solutions
Models of Public Private Partnership
Build Operate Transfer (BOT)
• A private developer is financing, building, and operating facility for a specified period. Afterwards the facility is returned to the Government.
• The government will typically pay the BOT partner at a price calculated over the life of the contract to cover its construction and operating costs, and provide a reasonable return.
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e-Government Solutions
Models of Public Private Partnership
Variations to BOT
• Build Transfer Operate
It is similar to BOT, but private partner has to transfer ownership first. Construction of Bridges, Highways, Railroads where usage charge can be collected easily.
• Build Own Operate After contract period 15 to 20 years, private partner may extend the
contract or sell the property. BOO contracts are common in the businesses with higher risks.
• Build & Lease Government operate and only pay the lease payment.
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e-Government Solutions
Public Private Partnership in e-Government
Possible Models of PPP in e-Government
• Management contracts are the most common model since it is hard to make profit out of operating the systems. e-Government services are provided at free of charge in most countries
• BOT or variation model could be applicable to e-Procurement, e-Customs, e-passport. Private partners could make profit by charging transaction fees to users with minimum revenue guarantee from the Government.
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e-Government Solutions
Public Private Partnership in e-Government
Korean Cases
• Management contract or outsourcing contract are the most common models
• Share of Intellectual Properties with the Private Partners who developed the systems
• Private sector has to develop chargeable services that citizens are willing to pay
• Very active in transportation areas rather than e-Government
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e-Government Solutions
Critical Success Factors of Public Private Partnership
Critical Success Factors with Private Sector Perspective
• Stable Government
• Comprehensive Planning with Feasibility Study
(Revenue and Costs Estimate)
• Solid Legal Framework
• Optimal Risk Transfer to Private Sector
• Proper Communication to Public by the Government