Suitability of procuring large public works by PPP in Hong Kong

Abstract

PurposeThe Hong Kong Special Administrative Region (hereinafter referred to as Hong Kong) is an international leading commercial hub, particularly in Asia. In order to keep up its reputation a number of large public works projects have been considered. Public‐private partnership (PPP) has increasingly been suggested for these projects, but the suitability of using this procurement method in Hong Kong is yet to be studied empirically. The purpose of this paper is to specifically consider whether PPPs should be used to procure public works projects in Hong Kong by studying the attractive and negative factors for adopting PPP.Design/methodology/approachAs part of this study a questionnaire survey was conducted with industrial practitioners. The respondents were requested to rank the importance of 15 attractive factors and 13 negative factors for adopting PPP.FindingsThe results found that in general the top attractive factors ranked by respondents from Hong Kong were efficiency related: these included “Provide an integrated solution (for public infrastructure/services)”, “Facilitate creative and innovative approaches”, and “Solve the problem of public sector budget restraint”. It was found that Australian respondents also shared similar findings to those in Hong Kong, but the UK respondents showed a higher priority to those economic driven attractive factors. Also, the ranking of the attractive and negative factors for adopting PPP showed that on average the attractive factors were scored higher than the negative factors.Originality/valueThe results of this research have enabled a comparison of the attractive and negative factors for adopting PPP between three administrative systems. These findings have confirmed that PPP is a suitable means to procure large public projects, which are believed to be useful and interesting to PPP researchers and practitioners.