​In response to HKSAR Government’s public consultation for the Chief Executive's 2023 Policy Address, IPPP has submitted the Recommendations on the 2023 Policy Address regarding the PPP Project Delivery Model for the Northern Metropolis on 12 October 2023. The Chief Executive, Mr John Lee, will deliver his second Policy Address on 25 October 2023. IPPP's recommendations are shown below.

 

 

The Northern Metropolis comprises a number of major development projects, including Kwu Tung North, Hung Shui Kiu and Yuen Long South New Development Areas which are under construction, and San Tin Technopole, New Territories North New Town which are under planning study. These planning studies will be largely completed by 2024, to be followed by detailed design stage for engineering works.

The Northern Metropolis also involves a number of transport infrastructure projects such as the Hong Kong-Shenzhen Western Rail Link, the Northern Link Main Line and Spur Line and the Northern Metropolis Highway which the relevant studies have commenced progressively.

The Financial Secretary announced in the 2022-23 Budget that $100 billion would be set aside from the cumulative return of the Future Fund to set up a dedicated fund in order to expedite the development of land, housing and transport infrastructure projects within the Northern Metropolis.

Financial assessments will be made when conducting relevant studies. The Government will explore the use of different approaches and financial options; including bond issuances or public-private partnership to take forward the projects.

 

The Institution of Public and Private Partnerships (IPPP) is a non-profit making learned organization registered in Hong Kong in 2017. The primary objective is to promote the public private partnership (PPP) project delivery model for the Belt and Road Initiative. IPPP acts as a professional body for exchange of PPP information, with the ultimate aim of implementing infrastructure development projects in an efficient and sustainable way via PPP.

IPPP fully supports the World Bank Group PPP Certification Program which promulgates internationally recognized good practice in the formulation and implementation of PPP projects by both public and private sector.

IPPP proposes recommendations to the 2023 Policy Address regarding the PPP project delivery model for the Northern Metropolis.

 

 

At present, there is no dedicated Centre within the Government to advocate the advancement of PPP project delivery model and to maintain a library of up-to-date PPP project documentations. The private sector is unable to obtain the latest information on PPP projects from the Government and also unable to acquire the best practices and lessons learnt of PPP projects in Hong Kong.

 

It is recommended that the Government consider collaborating with PPP professionals in Hong Kong and set up the Hong Kong PPP Centre for the advancement of PPP projects. The basic objectives of the PPP Centre are:

 

Hong Kong has in fact successfully implemented many major PPP infrastructure projects since 1980’s such the road tunnels, cross harbour crossings and MTR lines. The construction industry has grown enormously from the import of capital and expertise due to these PPP projects. However, the general public’s perception of PPP has not been properly managed and the benefits of PPP have not been clearly communicated. The publicity of PPP to the general public needs to be strengthened in order to gain their support for the use of PPP project delivery model in the Northern Metropolis.

 

It is recommended that the Government consider collaborating with PPP professionals to strengthen the publicity of PPP model for major infrastructure projects and commercial developments in Hong Kong.

 

At present, there is no comprehensive PPP legislation and procedure for the procurement process of PPP projects by different procurement entities. The performance of the procurement entities is dependent on the competency of the PPP professionals involved in each particular PPP project.

 

It is recommended that the Government consider imposing training and qualification requirement for PPP professionals involving with the procurement and implementation of PPP projects.

 

At present, PPP projects in Hong Kong are usually initiated by individual government departments or statutory corporations and authorities which have their own governance structures. There is no comprehensive PPP legislation and the procurement process for PPP projects may vary depending on the procuring authority and its internal governance rules. Transparency and uniformity of PPP processes are important in order to gain general public’s support on future PPP projects.

It is recommended that the Government consider setting up the PPP law and formalized PPP processes to effectively and efficiently manage the PPP projects.

 

Transparency and effective dissimulation of up-to-date project information is particularly important for PPP projects. At present, there is no dedicated portal within the Government to undertake the coordination and up-keeping of PPP project information and reference documentations.

 

It is recommended that the Government consider setting up of dedicated PPP portal to undertake the up-keeping of PPP project information.

 

Developing a culture of continuous improvement and sharing of best practice in PPP projects can certainly enhance the effectiveness of PPP project delivery model. Similar to other professional organizations, providing annual awards can provide excellent networking opportunities for professionals from both public and private sectors.

 

It is recommended that the Government consider organizing annual awards on outstanding PPP projects.

 

Mr. Walter Chan, Founder Member of IPPP

Mr. KM Yeung, Founder Member of IPPP

Mr. Billy Tam, Chairman of IPPP

Mr. Francis Sootoo, Vice Chairman of IPPP

Mr. Steven Lai, Vice Chairman of IPPP

Ms. Moon Wei, Honorary Secretary of IPPP

Mr. Ken Tong, Honorary Treasurer of IPPP

 

Recommendations prepared by the IPPP

12 October 2023