Copyright ⓒ 2011 Samsung SDS Co., Ltd. All rights reserved | Confidential Public Private Partnerships in Korea: A Private Sector Perspective from Samsung.

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