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Public Private Partnership: Framework For E-Service Delivery
Public Private Partnership: Framework For E-Service Delivery
Background
New Policy and Strategy for Public-Private Partnership (PPP) was approved by the Cabinet and the gazette was published on August 02, 2010 and replaced BPSIG The Guidelines for large, medium and small projects have also been approved
Approach
Definition: providing public goods and services using private investment Office of the PPP: A strong and independent lead agency for PPP under PMO, CEO directly reporting to the PM Streamlined and simplified process
Formulation, appraisal, approval
Empowered line Ministries/implementing agencies Flexibility: Generic Policy and Strategy has been proposed and guidelines may be updated time to time based on the needs and experience of implementation CCEA can specify guidelines
Investment size
Small (BDT <500 mil.), Med (BDT 500-2500 mil.), Large (BDT >2500 mil.)
Linked components
Implemented by government Financed by public and/or private funds
Institutional Framework
Entity PPPAC Chair Prime Minister ToR Guide Office of PPP, line Ministries to expedite Break down bottlenecks Review progress at national level
CCEA
Finance Minister Approve guidelines, procedures, model docs Review contingent liability for Large projects Approve incentives Approve In Principle for Med and Large; Approve Large Approve org. structure of PPP Cell Recommend PPP-related laws Prepare model docs and guidelines for approval Promote PPP projects to investors To select a panel of experts and transaction projects Support line Ministries/impl. Agencies in formulation, pre-feasibility, feasibility, technical and contractual parameters Build capacity of line Ministries/impl. Agencies on PPP
Finance Division Issue procedures and guidelines for financial participation by the government Approve funds for TA for proposed and VGF for selected projects based on concession agreements Channelize funds for infrastructure financing Planning Commission Fast-track Linked Components (part of ADP) Review ADP to prevent duplication
L M
OPPP
OPPP
OPPP
Applicability of PPP
Any project that generates public goods and services may be considered under the public-private partnership, if at least one of the following circumstances exist for the project :
1. 2. The implementation of the project is difficult with the financial resources or expertise of the government alone; Private investment would increase the quality or level of service or reduce the time to implement compared to what the government could accomplish on its own; There is an opportunity for competition, where possible, among prospective private investors, which may reduce the cost of providing a public service; Private investment in public service provides an opportunity for innovation; and There are no regulatory or legislative restrictions in taking
3.
4. 5.
Sectoral Coverage
Any project fulfilling one or more of abovementioned applicability criteria in any economic sector, according to the International Standard Industrial Classification (ISIC) of all Economic Activities, Revision 4, specified by the United Nations, is eligible for PPP.
5.k: Telecommunication systems, networks and services including information and communication technology (ICT) (ISIC 60-63) 5. n: IT park (ISIC 81-82) 5.o: social infrastructure e.g. health, education, human resource development, research and development, and cultural facilities, (ISIC 85-88) 5.p: e-service delivery to citizens (ISIC 85) 5. q.iii: Rural Internet projects (ISIC 61)
Eligibility Criteria
Any for-profit or not-for-profit entity legally registered in Bangladesh or abroad at the time of submission of proposals in response to Request for Qualification or unsolicited proposals is eligible for participation in PPP projects. However, at the time of contract awarding, the foreign entity is required to be registered as a legal
Fiscal Incentives
Reduced import tax on capital items under PPP projects Tax exemption or reduced tax on profit from operating/managing for a specific time period Others specified by LM/ IA
Special Incentives
Any specific project may get special unique incentives with the approval of the CCEA which shall be declared in the RFP documents. Special incentives may be extended to PPP projects targeted for rural or/and underprivileged population Special incentives may be given to non-resident Bangladeshis (NRBs) to invest in PPP projects.
Infrastructure Financing
The infrastructure financing is an arrangement for extending financing facilities for the PPP projects in the form of debt or equity through specialized financial institutions
Highest Composite Index on KPI Lowest cost Highest revenue sharing Highest Composite Index on KPI Highest fixed cost investment by private sector
Services with partial cost recovery ( in many cases, fixed cost recovery is not possible)
e-Procurement
User charges as fees for service enhancement from participating government agencies, subscription fees from prospective suppliers User charges as fees for service enhancement from citizens and businesses (in addition to the usual fees charged for issuing certificates and licenses) Viability gap funding User charges as fees for service enhancement from the government Viability gap funding User charges as fees for service enhancement from the government
% share of the service enhancement fees, per distribution % share of the service enhancement fees, per distribution
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BCS Priority
G2C Tax related Social Benefits related Property related Agriculture related Education based Health based Tourism related G2B Tax related Corporate Compliance related e-Procurement Auctions Treasury Automation x --
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