Public-Private Partnerships and Corporate Social Responsibility © Vinod A. Iyengar A-505 & 506, UNESCO Apt; 55, I. P. Extension; New Delhi – (India) Mob:

What is Public-Private Partnership? Long-term, contractual partnership between government agencies & private parties (corporations, NGOs, etc.) For: infrastructure facilities and/or services traditionally provided by the public sector Involves: financing, designing, implementing and operating PPP projects 2Vinod A. IyengarMay 2012

Why PPPs? To improve implementation, which suffers d ue to (among other reasons): o Lack of motivation/shared vision o Red-tape o Poor management skills Resulting in (among others): o Delays and cost escalations o Leakages (corruption) o Cancellation of projects 3Vinod A. IyengarMay 2012

GOI definition The PPP project means a project based on contract or concession agreement between a government or statutory entity on the one side and a private sector company on the other side, for delivering infrastructure service on payment of user charges. 4Vinod A. IyengarMay 2012

PPP models popular in India 1) BOO (build, own, operate), in which: a)Government provides land/building/funds/etc. b)Private partner brings-in money, management expertise, technology, people and equipment c)Private partner operates the enterprise 2) BOOT (build, own, operate, transfer) Note: BOOT similar to BOO but, in this case, the project is eventually transferred to government 5Vinod A. IyengarMay 2012

PPP roadmap Execution Acquiring personnel & resources, deployment, project management Formation of delivery vehicle Partner identification, allocating responsibility, contract signing, etc. Feasibility study & detailed project report Beneficiaries, resources, know-how, process, cost, funds-flow, benefits 6Vinod A. IyengarMay 2012

Popular PPPs in India Infra- structure Healthcare Education Airports Roads, bridges Waste mgt. Hospitals MMUs Telemedicine Schools Distance edu. Livelihoods 7Vinod A. IyengarMay 2012

Corporate Social Responsibility & PPPs - whats in it for corporations? o High visibility among stakeholders o Platform for displaying mgt. and other abilities o Chance to showcase its social commitment o Constant publicity throughout PPPs duration o Opportunity to scale CSR at low cost (Government funds and other resources) o Occasion to try out new technologies 8Vinod A. IyengarMay 2012

Why CSR? To sustain a corporations activities and processes What is sustainability? The capacity to endure in any opposing or fatal condition (Note: This is the most important asset of any successful enterprise) 9Vinod A. IyengarMay 2012

CSR roadmap Identification of stakeholder need Feasibility study Project report Identification of partners (e.g., Govt./NGOs/etc.) Agreeing on resources and responsibilities Contract Acquiring resources Deployment Project management 10Vinod A. IyengarMay 2012

CSR study - Investors Investor uncertainty because of: Increased competition in traditional business from: New companies doing same business cheaper Foreign companies (some existing customers) setting-up shop in India Lower profits Decreasing growth rate vis-à-vis share-value 11Vinod A. IyengarMay 2012

CSR study - Personnel Insecurity among personnel, who feel: They are missing out on new opportunities Colleagues were learning new technologies, gaining experience and earning more High attrition-rates in trained people Bench-strength depleting as people seek better jobs Experienced people enticed by competition 12Vinod A. IyengarMay 2012

CSR study – Customers & Suppliers (Other than contractual issues) Congestion Pollution Health issues Feeling of insecurity 13Vinod A. IyengarMay 2012

CSR study - Government Unable to provide/ensure: Quality education, training and jobs Basic civic amenities Effective law-enforcement/emergency services Deliver consistent quality healthcare To ensure above, governments willing to: Take help from corporates and NGOs Partner with them where necessary Provide relevant resources 14Vinod A. IyengarMay 2012

CSR study - Society Perception that IT sector responsible for: Flood of over-paid youngsters Spiralling land, building and food prices Increased crowds, traffic and pollution Falling health and utility services Slums, beggars, and street-children Influx of shady characters 15Vinod A. IyengarMay 2012

CSR study - Analysis Our sense… Influx of people/problems due to poverty: Lack of education and technology Limited livelihood opportunities Poor health and emergency services Increased dependence on moneylenders Helpless feeling - running hard but getting nowhere 16Vinod A. IyengarMay 2012

Solutions Off-setting misconception & reversing tide Limit influx of people into cities through: Quality distance education & technical help Improved livelihood opportunities Innovative health service delivery Improve urban quality-of-life through Defensive driving and traffic management Innovative health, police, and other services Green energy technologies 17Vinod A. IyengarMay 2012

Opportunity Realization addressing the problems: Opportunity to come up with new products New businesses & markets boon for investors Bench-strength satisfaction Needs of customers, suppliers & society met Assist Central & State Governments and people of India 18Vinod A. IyengarMay 2012

Public-Private Partnership Examples Emergency Services (15-Aug-05) Police, fire, and medical emergencies Services available through toll-free number Operational in 11 states (2 in pipeline) Capital: between Rs. 15 and 50 crore/state 95% funds from NRHM, 5% from Satyam Health Services (15-Aug-07) 24 x 7 health advice over the telephone Mobile medical units reach the last mile Doctors, psychiatrists and ASHA workers Capital over Rs. 250 crores (in AP) 95% funds from NRHM, 5% from Satyam 19Vinod A. IyengarMay 2012

Highlights (AP) 99.8% calls answered in two rings React to more than 4,250 emergencies per day (Medical: 96.5%, Police: 3.0% and Fire: 0.5%) More than108 lives saved/day (over 1 lakh lives saved so far) 582 ambulances, 15 PRICE vehicles Response time (Minutes): 14 (urban areas) & 22 (rural areas) 100% virtual handholding for critical and serious cases 3,331 private hospitals in the network 108 brand awareness – 75% 4,400+ passionate associates (Support: 5%, ERC: 5%, Ambulance: 90%) 20Vinod A. IyengarMay 2012

Highlights (AP) Catering to over 80 million people 104 Advice (Telemedicine) 24x7 via toll-free number (104) 1,800 doctors, counselors, and healthcare specialists More than 60,000 calls per day (90% from rural areas) 104 Mobile (Mobile medical units) 475 MMUs that service people at the last mile 1,450 trained medical technicians 750 ASHA (Accredited Social Health Associates) 21Vinod A. IyengarMay 2012

The Model The Model 22Vinod A. IyengarMay 2012