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Public–Private Partnerships for Critical Infrastructure Development: The Hong Kong Experience

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Part of the book series: Competitive Government: Public Private Partnerships ((CGPPP))

Abstract

Due to the accumulation of its budget deficit following the Asian financial crisis, the Hong Kong government, inspired by the success of public–private partnerships (PPPs) in the UK and Australia, has introduced PPPs for the delivery of public services and infrastructure (Smith 2004). PPP schemes, as part of the government’s Private Sector Involvement (PSI) initiative, are expected to deliver quality infrastructure projects with more involvement from the private sector. This chapter presented a general background of PPP establishment in Hong Kong. A summative review of the past and present PPP projects was given. The chapter also explored the opportunities for expanding PPP services and identified the trends and lessons learned from experiences.

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Notes

  1. 1.

    Description of the highway and tunnel projects in this section was mainly based on Mak and Mo (2005) and Wong (2003).

  2. 2.

    This section summarized with modification some discussion of PPP for railway projects by Chan (2017) in the 10th APEC Transportation Ministerial Meeting.

  3. 3.

    This part described four more generic infrastructure projects, which were based on Lee (2005) and Lam and Javed (2016).

  4. 4.

    According to Xinhua Finance Agency (2015), the proposed multilateral bank has an authorized capital of $100 billion, 75% of which comes from Asian and Oceania countries. China is the single largest stakeholder, holding 26% of voting rights. The bank started operation by year end of 2016.

Abbreviations

AA:

Airport Authority

AIIB:

Asian Infrastructure Investment Bank

APEC:

Asia-Pacific Economic Cooperation

AWE:

Asia World-Expo

BFA:

Boao Forum for Asia

BOO:

Build-own-operate

BOOT:

Build-own-operate-transfer

BOT:

Build-operate-transfer

CWTC:

Hong Kong Chemical Waste Treatment Center

DBFO:

Design-build-finance-operate

DBO:

Design-build-operate

EU:

Efficiency unit

FC:

Franchises and concessions

JV-WMI:

Joint ventures and wider market initiatives

NENT:

North East New Territories Landfill

OBOR:

One belt one road initiative

PCI:

Partnership companies and investments

PFI:

Private finance initiatives

PPP:

Public–private partnership

PRD:

Pearl river delta

PSI:

Private sector involvement

SENT:

South East New Territories Landfill

WENT:

West New Territories Landfill

WKCD:

West Kowloon Cultural District

WKR:

West Kowloon Reclamation

XRL:

Guangzhou-Shenzhen-Hong Kong Express Rail Link

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Acknowledgements

This work was supported by The Education University of Hong Kong under a departmental research grant. The author wishes to thank his research and student assistants for their outstanding assistance on this work.

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Correspondence to Eddie W. L. Cheng .

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Cheng, E.W.L. (2019). Public–Private Partnerships for Critical Infrastructure Development: The Hong Kong Experience. In: Clark, R.M., Hakim, S. (eds) Public Private Partnerships. Competitive Government: Public Private Partnerships. Springer, Cham. https://doi.org/10.1007/978-3-030-24600-6_11

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