Decisions on PPPs, outsourcing and other contractual arrangements with the private sector have to be made carefully. Considerations include the quality and quantity of the resources available within the government as compared to those in the private sector, the potential costs involved in outsourcing, and the timetable that is applicable to the project.

There is no set formula for crafting a successful partnership with the private sector. However, UNESCO and the National Council for Public-Private Partnerships (US), among others, suggest that the following elements should be taken into account:

• Political Leadership: A successful partnership can be formed only if there is commitment from “the top.” Senior public officials should be actively involved in supporting the concept of PPPs or outsourcing and taking a leadership role in the development of each partnership.
• Planning: The responsibilities of both parties to the partnership should be clearly articulated in a fully-developed plan. These plans often take the form of a detailed contract. In addition to outlining areas of respective responsibilities, a good plan or contract will include a clearly defined method of dispute resolution.
• Legal Framework: There should be a solid legal and policy foundation for the implementation of each partnership.
• Private Partner Compensation and Commitments: Private partners enter PPPs to make a profit. Therefore the terms of the PPP contract must be explicit in terms of revenue, fees to be charged to the public and other cost and expenditure factors. and other The best partnerships will involve shared burdens and shared rewards for both the public and private participants. The private partner should not be viewed merely as an entity for outsourcing work; it should contribute to the project as a genuine partner, drawing on its unique skills and capabilities for the benefit of the project.
• Public Sector Oversight: Once a partnership has been established, on-going monitoring by the public sector is important in assuring its success.
• Consultation with Stakeholders: Civil servants, citizens, and other stakeholders will be affected by the partnership. It is important to consult closely with these stakeholders in planning, implementing and overseeing any PPP.
• Selecting the Right Partner: As with government procurement, awarding contracts to the lowest bidder is not always the best choice for selecting a partner. Awarding contracts based on the best value is critical. A potential partner’s knowledge and experience in the areas required by the project under consideration are important factors in identifying and selecting the right partner.
• Intellectual Property Rights: During the implementation of e-Government projects, assets in the form of products, technologies, and business models may be created. It is important to define who will own the intellectual property represented by these assets.
• Security and Privacy: In PPPs involving information systems, the government must ensure that the sensitive data collected about individuals and entities is protected against misuse. A private partner should not be able to use the government’s data for private purposes.

Resources:

• The National Council for Public-Private Partnerships (US), “Keys to Successful Public Private Partnership.”
• UNESCO, E-Government Toolkit for Developing Countries, Chapter 6, Partnerships (2005).
• Subhash Bhatnagar, “PPP in Delivery of e-Government Services to Urban and Rural Citizens: Key Lessons in Implementation.”

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