Region: East Asia and Pacific (EAP)
Country: Hong Kong SAR, China
Keywords: Public Sector, PPP unit
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Public Private Partnerships (PPPs) are arrangements where the public and private sectors both bring their complementary skills to a project, with varying levels of involvement and responsibility, for the purpose of providing public services or projects. They are characterised by the following:
- Large scale expensive long-term projects usually involving the construction of a new facility designed to deliver particular services;
- The Government defines the quality and quantity of services, and the timeframe in which they are to be delivered;
- The private sector is responsible for delivering the defined service while the government is mainly involved in regulation and procurement;
- A long term relationship is established, typically between 10 years and 30 years, depending on the nature of the facilities, assets or services to be delivered;
- Responsibilities and risks are allocated to the party best able to manage them;
- The private sector and/or the Government finances the project (wholly or in part). The private sector and/or the Government would recoup its investment from charges on end-users or payments made by the Government during the life of the contract;
- The private sector is encouraged to make use of its innovation and flexibility to deliver good quality, cost-effective services throughout the project lifecycle; and
- The different functions of design, construction, operation and maintenance are integrated / use a whole-of-life approach.
Updated: March 28, 2021