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