HOW CAN WE CAPITALISE ON THE CONCEPT OF PPP? Presented by: Ir Dr - PowerPoint PPT Presentation

HOW CAN WE CAPITALISE ON THE CONCEPT OF PPP? Presented by: Ir Dr the Hon Raymond Ho Chung-tai, MBE, S B St J,JP Conference on “Public Private Partnerships - Opportunities and Challenges Hong Kong Convention and Exhibition Centre 22 February 2005 1

Difficulties facing local construction industry • Decline in private building projects • Government’s tight budget control on new public works • Unemployment rate of the sector is more than double that of the overall unemployment 2

Public Private Partnerships • Partnership between the public and private sectors • Involvement of private sector providers to develop facilities and/or deliver services for the use of the public 3

Advantages of PPPs • Allow the government to concentrate on its core competencies • More efficient and effective allocation of risks • Offer innovative financing • Provide the private sector with more business opportunities etc 4

Types of PPPs • Joint ventures • Partnership companies • Partnership investments • Franchises • Private finance initiatives (PFIs) • Design and build; design, build and operate; build, operate and transfer • Privatisation and corporatisation 5

Relevance of PFIs to HK • Encourage private companies to initiate more public works projects • Promote more creative and innovative projects with necessary incentives 6

Conclusion • PPPs provide the government with a new approach to develop facilities and/or services • Better delivery of public services and more employment opportunities 7

Thank you 8