Paying the eGovernment Bill eGovernment and Sectoral Development in the Caribbean State

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Paying the e-Government Bille-Government and
Sectoral Developmentin the Caribbean State
David Spiteri Gingell Chief Executive Officer,
Malta Information Technology and Training
Services Ltd Chief Information Officer (Malta
Public Service), CIMU
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Minimising Cost of Ownership for e-Government

• Holistic e-Government Strategy
• One e-Government Architecture
• One consolidated e-Government Infrastructure
• Registration and Authentication
• Payment Gateway
• Government Portal

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Minimising Cost of Ownership for e-Government
(cont)

• Defining Standards
• Inter-operability Framework
• Authentication Framework
• Defining appropriate Security and Technology
  levels
• Minimising retro-fitting and reigning in Lone
  Rangers

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Investment For What?

• Setting up of Technical Infrastructure
• Introducing of Multiple and Social Inclusive
  Delivery Channels
• Developing and Operating the Middleware
• Establishing Vertical Services
• Process Re-engineering and Establishing
  Horizontal Services

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Financing in the Immediate Term

• Centralised Direct Capital Investment for
  e-Government programmes under one owner for
  Public Service and Public Sector
• Drawing in the Telecommunications Transport
  Providers to co-finance the inclusive delivery
  channels
• Exploiting potential regional financing bursaries
  by Supra-national Organisations

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Financing in the Medium and Long Term
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Option 01 Convenience Financing

• Presentation of surcharge to user for increased
  convenience
• Requires excellent branding and communications to
  user of advantages of using e-Services
• Utah, U.S.A establishes electronic calculators to
  provide users with comparisons of surcharge for
  e-service as against cost to user of using
  traditional service

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Option 02 Transaction Financing

• Financing done by supplier and payment to
  supplier by means of a transaction fee
• ROI dependent on volume of transaction vs cost of
  transaction fee
• Ideal for market place and e-procurement
  solutions

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Option 03 Performance Based Funding

• Based on Private Financing Risk-Reward models
  where efficiencies cost reduction is determined
  and private vendor is financed by means of direct
  capital investment to n of cost of investment
  and remainder on of efficiencies attained
  against benchmark set
• Determination of Performance Benchmark may lead
  to disputes due to ownership on resolution of
  issues

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Option 04 Public Private Partnership

• A Case Study where the approached worked
• German State of Bavaria Multi Regional Market
  Place Portal
• Seven district councils, 71 counties, more than
  2000 municipalities and 12 million inhabitants
• European Call for Tender issued at end of 1999
  and more than 20 offers received

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Option 04 Public Private Partnership

• A Case Study where the approached worked (cont)
• German State of Bavaria Multi Regional Market
  Place Portal
• Tender won by SAP and Siemens Consortium
• Baynet launched in December 2000 on
  self-financing business model
• Enterprises advertise at hybrid fee structure of
  monthly fee and 3 transaction charge

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Option 04 Public Private Partnership

• A Case Study where the approached failed
• MiGov Ltd PPP between Government of Malta and HP
  Led Consortium
• Tender for PPP issued in March 2001
• Evaluation concluded in December 2001
• Negotiations with Compaq (later HP) Consortium
  (including UK Deliotte Touche, and eGS)
  initiated March 2002

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Option 04 Public Private Partnership

• A Case Study where the approached failed (cont)
• MiGov Ltd PPP between Government of Malta and HP
  Led Consortium
• Recommendations for setting up of MiGov Ltd
  submitted to and approved by Cabinet in July
  2002
• Financing based on hybrid model of Direct
  Government subvention to MiGov Ltd, convenience
  charging and transaction charging

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Option 04 Public Private Partnership

• A Case Study where the approached failed (cont)
• MiGov Ltd PPP between Government of Malta and HP
  Led Consortium
• Collapse of establishment of MiGov Ltd in
  November 2002
• Independent PA Audit shows that technical
  solution presented by Consortium gt UK On Line
• Trust undermined

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Conclusion

• Centralised Approach to e-Government Mandatory
• Direct Capital Investment still necessary
• Public Private Partnership and Hybrid Financing
  Models have chequered history but can work and do
  provide an alternative source of financing