e-governance for the urban sector : challenges and opportunities

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E-Governance for the Urban Sector : Challenges and Opportunities

Sanjay SaxenaManaging DirectorTotal Synergy Consulting (P) Ltd.

12th November 2008

TSCPL Profile

Context and Background

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Urban Sector Overview (E-Governance Perspective)

MPUSP: An Example

Key Issues and Learnings

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Poor Financial Condition of Local Govt.

Local Govt.

Central & State Govt.

Increased pressure tocontrol expenditure& increase revenues

Central viewpoints & schemes thrust upon States

Loss of control & priority setting by Centre

Role of State reduced to Implementer of Central Schemes

Poor Level of Services Provided to the Citizens

Low Motivation and Capacity of Staff

Poor Administration and Collection of Local Taxes

Low Willingness of People to Pay Local Taxes

Increased Dependence on Central Funds

Background

Vicious circle of low resources of

Local & State Governments

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The urban context and challenge

Global trend towards urbanizationIncreasing poverty and insecurity Unsustainable urbanization patterns requiring preventive and adaptive approaches Limited local government implementation capacity is the main bottleneck

New approach to ‘good governance’Local authorities as ‘enablers’Emphasis on partnership for service deliveryFocus on inclusiveness of access to city benefits and decision makingPromising innovations, but need to scale up

“The key ingredient to realizing more inclusive cities is neither money nor technology, nor even expertise or legislative change (although all these are important), but good urban governance.”

The Global Campaign on Urban Governance, Concept Paper, 2nd Edition, March 2002

Changing roles of Governments

FROMSilos

EntitlementsRegulator

Agency-focusedProtective

Rule-based

TOIntegratedOutcomesFacilitatorCitizen-focusedCollaborativeKnowledge-based

Background

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What is NEGP• Key part of National development

plan• Goal: Improving government

service delivery through on-line delivery at local service centers

• Led centrally and implemented locally

• Total cost USD 4 billion and will be implemented over 8 year period

Funding sources• 3% of Existing ministry budgets • Existing State funds• Additional Central Assistance

(ACA) from GOI to States• External financing from WB and

other donor agencies • Private financing through PPPs• User charges

Allocation and Expenditure of e- Governance: Upto Sept 2008

Year Allocation Expenditure

2005-2006 3000.0 2998.7

2006-2007 4254.5 4338.4

2007-2008 5524.0 5478.2

2008-2009 8000.0 455.2

National E-Governance Plan

“Make all Government services accessible to the common man in his locality, through common service delivery outlets and ensure efficiency, transparency & reliability of such at affordable costs to realize the basic needs of the common

man”

(in Million Rs)

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NEGP MatrixCentral State Integrated

Services to Citizens (G2C)

Income taxPassport, visa & ImmigrationNational ID

Land recordsProperty registrationRoad transportAgricultureMunicipalitiesPanchayatsPolice

Common Service CentersIndia portal

Services to Business (G2B)

ExciseCompany affairs (DCA21)

Commercial taxes

EDIe-Biz

Services within Government (G2G)

Pensions Treasuries

Proposed Banking InsuranceNational GIS for Planning E-Posts

Employment Exchange EducationCivil Supplies

National e-Governance gatewaye-Procuremente-Courtse-Office

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E-Governance Budget Estimates (in Million Rs)

Class IPopulation in Lakhs

Class I Class II Class III Class I, II, III

(Year 2004) Mega Cities

>10 5-10 1-5 Total 0.5 -0.99

0.2-0.49 Total

No. of ULBs 6 29 34 354 423 401 1151 1975

Ist yr. Investment

547 1194 1082

9077

11900 4891 12197 28988

Annual cost 80 247 233 1977

2536 1189 3130 6855

State level – shared infrastructure and costs Total

State ERP packages 945

Hardware 1. Shared between all categories of Class I ULBs (excluding

mega cities)2. Shared between Class II and Class III ULBs

140140

Disaster back-up1. Shared between all categories of Class I ULBs (excluding

mega cities)2. Shared between Class II and Class III ULBs

15961596

Total shared costs by states 4417

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Objectives:•Integrated development of infrastructure services•Establishment of linkages between asset-creation & asset-

management •Ensuring adequate funds •Planned development of identified cities •Scale-up delivery of civic amenities •Provision of utilities •Focus on urban renewal program for the old city areas •Provision of basic services to the urban poor

Duration and Funding : 7 yrs from the year 2005-06. INR 50 billion

Jawaharlal Nehru National UrbanRenewal Mission “The JNNURM aim is to encourage reforms and fast track

planned development of identified cities. Focus is to be on efficiency in urban infrastructure and service delivery

mechanisms, community participation, and accountability of ULBs/ Parastatal agencies towards citizens.”

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The JNNURM Framework

Accounting reformsE Governance

Property tax with GIS

User chargesServices and funds for

the poorLand related reforms

DecentralizationCommunity participation

Disclosure laws

Urban renewalWater supply

SanitationStorm water

drainsTransport projects

Parking lotsHeritage areasPreservation of water bodies

An incentive

fund

GoI will fund these

Investmen

ts

IF the cities and states commit to

these reforms

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Integrated Low Cost Sanitation Scheme (ILCS)•1% of total central allocation for development of Monitoring Sys, MIS, Capacity Building & IEC components.

Building Materials and Technology Promotion Council (BMTPC)•First ever Geographical Information System (GIS) based landslide inventory map and landslide hazard zones maps of India prepared

Urban Statistics for HR and Assessment (USHA)•Development of MIS and knowledge repository

JNNURM•14 Cr allocated to meet the expenditure for preparation of appraisal and project reports and Organization of training workshops, seminars capacity building and IEC related activities.

•Estimate of 8 Cr. given in the 11th five year plan for MIS of Urban basic services.

Swarna Jayanti Shahari Rozgar Yojana (SJSRY) •Integrated Urban Poverty Monitoring System and MIS system developed

•Skills training and capacity building of the poor undertaken.

•Focus on gender budgeting in training modules for Capacity Building

Ministry of Housing and Urban Poverty Alleviation (MOHUPA)

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Projects

National Urban Information System (NUIS) Scheme• GIS Database: Digitised Maps for 1:10,000 and 1:2000 scale for

137 towns from Satellite and aerial platforms.• Capacity Building: About 16 training programs for each three

levels were organizedAccelerated Urban Water Supply Programmes (AUWSP)• Training in Public Health Engineering and Research in

Monitoring and Management Information System (MMIS) was implemented.

Ministry of Urban Development (MoUD)

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Asian Development BankIndian Investment

Total Loan Investment 2007 $1.2 BillionPotential Loan Investment 2008-2010 $3 BillionUrban Development funding totalling $800 Million in 2007.

Project Loan Amount

India Infrastructure Project Financing Facility. $300 Million

Madhya Pradesh State Roads Sector Project. $320 Million

North Karnataka Urban Sector Investment Program. $33 Million

Rajasthan Urban Sector Development Investment Program. $60 Million

Jammu and Kashmir Urban Sector Development Investment Program. $42 Million

World Bank

Indian InvestmentNew lending in 2007-2008 $2.7 billion. 60 active projects with an ongoing commitment of approximately $14.3 billion.Urban Development comprises at least half of total current investment in India.ICT portfolio around USD 600 million

Urban Projects (Partial List) Total Investment

Third Tamil Nadu Urban Development Project $435 Million

Mumbai Urban Transport Project $945 Million

Karnataka Municipal Reform Project $310 Million

Uttar Pradesh State Roads Project $615 Million15

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Japan Bank for InternationalCooperation

Urban Projects (Partial List) Total Investment

Bangalore Metro Rail Project $384 Million

Bangalore Water Supply and Sewerage Project $625 Million

Delhi Mass Rapid Transport System Project $905 Million

Total Indian Loan Investment 2007 $2.25 Billion

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Indian Investment:2002-2007 Over £1 Billion2008-2011 £825 Million Planned Urban Development investment over £266 Million

Dept . For International Development

Urban Projects (Partial List) Grant Amount

Madhya Pradesh Urban Services for the Poor £41 Million

Andhra Pradesh Urban Services for the Poor £95 Million

Kolkata Urban Services for the Poor £93 Million

TSCPL Profile


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MPUSP: An Example


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Total Rs 350 Crore

Slum Upgrading 160

Reforms & Training 100

Strengthened Communities 50

Supporting TA 40

MPUSP - a partnership between GoMP and GoUK’s DFID

100% grant funded – total budget aprox GBP 41 million

5 years duration (2006 to 2011)

Initially Four Cities – Indore, Gwalior, Jabalpur and Bhopal

10 more cities added in 2008

Madhya Pradesh Urban Services for the Poor (MPUSP)

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MPUSP Role of E-Governance

Improved Urban Governance & Management for more Inclusive Service Provision

E-GovernanceE-Governance

Transparency & Accountability

Efficiency &Effectiveness

Responsiveness& Sustainability

Policy Reform & PartnershipsPolicy Reform & Partnerships

Process & PersonnelReform

Process & PersonnelReform

Planning & FinancialReform

Planning & FinancialReform

Madhya Pradesh Urban Services for the Poor

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Finance & Accounting

OD & HR Development

SocialDevelopment

E-Governance ICT / MIS / GIS

Urban Planning

Engineering &Infrastructure

MPUSP Components and Initiatives

Project Management

State Level• IT Equipment and

Infrastructure Procurement

• Urban Sector MIS and M&E System

• UADD Website Development

• ICT Capacity Building & Training

• State Data Centre • Framework for Citizen

Services Centres on PPP model

• UADD Emailing system

ULB Level• IT Equipment and

Infrastructure Procurement

• Municipal Administration System( MAS)

• Municipal GIS (MGIS)• Poverty Information

System• Citizen Service Centres

(CSCs)• Vehicle Tracking and

Management System (VTMS)

• Biometrics system for urban poverty programmes, Municipal Employees Attendance, Pensioners database, etc.

• Training and Study visits• Data Entry and

digitisation• Barriers to Access Study

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MPUSP Assistance

MP Urban Services for Poor

ServicesSoftware TrainingHardware

Total e-Gov Assistance Approx. 4 million USD

Madhya Pradesh Urban Services for the Poor

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Partnerships

Technology People PolicyProcess

Data Compilation & Database Creation

MPUSP : Components of E-Governance

Hardware, Connectivity & Networking Infrastructure

Systems & Application Software

Consultancy and Technical Support Services

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Partnerships


Regular, Intensive & Extensive Training

Change Management & Orientation

Partnership Approach & Effective Deployment of Staff

Role of Consultants & IT Professionals


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Partnerships


Redefining Roles & Responsibilities

Business Process Reengineering (BPR)

Redefining Systems & Procedures

Revising Operation Manuals, Rules and Guidelines


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Partnerships


Government Rules & Acts

E-Governance Policy, ICT Policy, Telecom Policy & Security Policy

Cyber Laws and Right To Information Act (RTI)

HR Rules & Service Conditions


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Partnerships


Information & Knowledge Sharing

Revenue & Business Model

Financial, Technical and Institutional Framework

Crafting & Steering Contracts


Municipal Management

Information System

Financial Management System

Accounts

Finance

Treasury

Auditing

Budgeting

Revenue Management System

Property Tax

Building Fees

Trade License Fees

Water Charges

Drainage Observation Fee

Leased Properties

Market Stallage

Advertisement and car parking

Amusement Tax

User Taxes

Inventory Management System

Procurement

Stores

Supply

Assets Management System

Estate Management

Other Assets like Vehicles, Plant & Machinery, etc

H.R. Managemen

t System

HR Database

Payroll

Provident Fund

Pensions Cell

Civic Services

Management System

Solid Waste Management

Health

Education

Engineering

Water Supply

Sewerage & Drainage

Planning & Design

Lighting & Electricity

Projects & Development

Parks & Gardens

Back Office Management System

IT

GIS

Law

Secretary

Press & I&PR

Vigilance & Corruption control

Citizens Interface System

GeographicInformation System

(GIS)

Poverty Management

System

Poverty Database Bustee Services

Programs & Schemes

Transaction Processing System (TPS)

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MAS Overview

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Providing Different Options to Citizens

CITIZEN

Hardware : Pvt. Kiosk OperatorSoftware : MP OnlineManpower : Kiosk ownerWho Pays : User pays( Rs 10 – 15 per transaction paid by the citizen to the kiosk operator who pays to MP online, who then pays to BMC )

Kiosks

Citizen Service Centers

CITIZEN

CITIZEN

MP Online(www.mponline.org)

All MCs&

ULBs

Hardware : User / CitizenSoftware : MP OnlineManpower : User / CitizenWho Pays : User pays( Rs 10 – 15 per transaction paid by the citizen to MP online by credit card, who then pays to BMC )

Hardware : BMC / MPUSPSoftware : MP OnlineManpower : BMCWho Pays : Free( No additional fee is charged from the citizen )

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TSCPL Profile


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MPUSP: An Example


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People

Process

e-gov

Technology

Policy

E-Governance requires process, policy & organizational and technological transformation


Vendors tend to focus exclusively on technology which is only 20% of the solution

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Open Source software Vs Proprietary software

“Open Source” software (not necessarily “Free” software) has a higher appeal for customers, specially government sector.

(Source: Barracuda Networks)


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Customers want the most “workable” solution instead of “state of art” technology


Need to understand the ‘business needs’ of the customers not the ICT needs.

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Customers are becoming better informed and hence more demanding.

Customer engagement model has to align with customers’ evolving needs and expectations. “Partners” as opposed to Vendors.


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To laymen, Microsoft is predominantly seen as a ‘personal productivity’ software vendor, not as a provider of business solutions for the public sector.

Need for improving customer awareness and perception management about ERP / CRM / SCM / DSS suites.


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Need to address the bottom of the pyramid


Insanity is doing the same thing over and over again, expecting different results.

- Rita Mae Brown

Need for designing solutions to address the digital and hence the economic divide.

http://en.wikipedia.org/wiki/Image:Anti-capitalism_color.jpg

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Integrated Systems & Procedures

Internet Mail

ServiceProviders

Suppliers & Partners

E-Mail KioskCounter Call Centre

Integrated Citizen Service Centre

Customers want ‘best of breed’ and integration !


Need for improved vendor collaboration with each other.

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Don’t promise what can’t be delivered.Improve customer support.

Customer support still remains an important challenge.


Extent of Software Piracy in BRIC FY 2007 India 69%China 82%Russia 73%Brazil 59%

(Source – Business Software Alliance Study)Politicians are the same all over. They promise to build a bridge even where there is no river.

- Nikita Khrushchev

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Extensive handholding and piloting support required to create flagships and champions


The art of taxation is in so plucking the goose as to obtain the maximum amount of feathers with the minimum amount of squawking.

Ancient Chinese proverb

Need for long term commitment.

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Customers Side

Preference to spend on hardware Multiple decision makersFrequent changes in senior managementHigh risk – high return projects – need championsPrefer PPP – “User Pays” / BOO modelNeed to address unique needs.

Vendors Side

Significant investments required for business developmentEasier to sell products than solutionsPreference for outright sales as opposed to transaction feePosition bespoke or COTS solutionsChallenges of localisation and customization – heterogeneity.


Vendors need to work with ‘Connectors’ and ‘Mavens’, in addition to the Salesmen.

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TSCPL Profile


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MPUSP: An Example

Key Issues and Learning's

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TSCPL ProfileFounded in 1988, Total Synergy Consulting Private Limited (TSCPL) provides management and IT consultancy and services to a range of national and international clients in both the public and private sector.

Executed over 100 ICT and management consultancy projects for the Public Sector

Interdisciplinary team of over 200 staff and consultants (national as well as international).

Institutional Development

Human Resource Development

Micro FinanceMarket Scan

GovernanceFunctional

ReviewsCapacity

BuildingFinancial

RestructuringPublic Private

Partnership

Civil, Fiscal & Financial Reforms

ICTsMISGISE-BusinessERP/CRM/

SCMBPRProcurement

& Product Management

E Governance

Monitoring & Evaluation

SWAPBenchmarkingIncentive

SystemsReport Card

Performance Evaluation

Poverty Reduction Community Mobilization & Development

Participative Rural Appraisal

Social Development

TSCPL : Core Practice Areas

TSCPL Public Sector Clients

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National Governments

State Governments

Municipal Corporations

Parastatal Bodies

Bi-lateral & Multi-lateral

Funding Agencies

India

Sri Lanka

Bangladesh

Cambodia

Uttaranchal

Maharashtr

a

Andhra

Pradesh

Karnataka

Orissa

Madhya

Pradesh

Tamil Nadu

Uttar

Pradesh

Uttaranchal

Kolkata

Bangalore

Hyderabad

Mysore

Mangalore

Jaipur

Bhopal

Indore

Gwalior

Jabalpur

NEIPA

NTPC

NHPC

NIPCCD

PCRA

CRPF

SAIL

IOL

The World

Bank

ADB

DFID

USAID

UNICEF

UNDP

Royal

Netherlands

Embassy

S 85 Greater Kailash II, New Delhi 110048 INDIATeleFax : +91-11-29219397 / 41435754

Mobile : +91-9811083474Email : [email protected]

Home Page : www.tscpl.com

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e-governance for the urban sector : challenges and opportunities

Documents

good urban governance

local service centersled

government service delivery

expenditure of e

na egovernance plan

central state govt

urban context

governance budget estimates