Public‐Private Partnerships in Hong Kong: Good Governance – The Essential Missing Ingredient?¹

Abstract

In recent years the potential of the Public-Private Partnership (PPP) model in securing sustainable development has been emphasised by various international organisations including the United Nations(UN) and the Organisation for Economic Cooperation and Development (OECD). These bodies, however, have warned that for PPPs to fulfill their potential as development tools, then both a favourable business environment and key aspects of 'good governance' need to be in place and functioning. This article examines PPP policies and projects in the Hong Kong Special Administrative Region of the People's Republic of China (HKSAR) over recent years. Ranked by several key agencies as having the freest economy in the world, Hong Kong might appear to be a particularly promising location for using PPPs to attain economic and social infrastructure development goals. Surprisingly, however, many potential PPP projects there frequently fail to reach fruition. Asking why this should be so, the article argues that the lack of certain critical ingredients of 'good governance' in Hong Kong has had a direct and negative impact on the fulfillment of its PPP potential. Of particular concern is government's frequent disregard of public views and the exclusion of the public from early and meaningful participation. This reflects an approach that can perhaps best be described as reliance on 'Government-Private' rather than on 'Public-Private' Partnerships.

Partnership Networks for Urban Development: How Structure is Shaped by Risk

“…Bjornå and Aarsaether () explored the joint role of the private and public sector in economic development projects in regional Norway. The inclusive nature of such policy networks is fostered by governments because of the perceived benefits from greater levels of private sector involvement in the provision of public services and infrastructure (Hayllar, ; Hayllar & Wettenhall, ). Private and public partnerships have been used to develop critical infrastructure such as “public transport, waste management facilities, roads, water, and wastewater services” (Beh, ), finance and manage toll‐ways (Johnston, ), shipping ports (Klijn & Teisman, , 2005), airports, and railways (Beh, ).…”

Unpacking the Path‐Dependent Process of Institutional Change for PPPs

“…Beh () uses the example of Malaysia and suggests that the lack of transparent procurement processes and regulatory safeguards leads to the privatization of profits and not societal value in the case of PPPs. Hayllar () supports this view and points out that in the case of Hong Kong, the lack of institutions that support good governance of PPPs – specifically arrangements that foster meaningful societal participation – can lead to PPP projects not being able to fulfill their potential. Johnston (: p.s62) also concludes that ‘unpredictability… of the political environment and arrangements in which PPPs take place’ can lead to pitfalls.…”

Public Money and Mickey Mouse: Evaluating performance and accountability in the Hong Kong Disneyland joint venture public–private partnership

“…The first sign of a lack of community engagement and secrecy on the part of the Hong Kong Government came with the announcement of the HKDL project itself. Hayllar (2010) notes that like many recent large economic development partnerships in the territory, the partnership with Disney was abruptly revealed by the government executive without any prior consultation with the legislature or broader community. This appears to have set the tone for the project as a whole, as public accountability issues related to secrecy and transparency have long affected the performance of the project as a PPP.…”