Chapter 12. Hong Kong SAR

Build-operate-transfer (BOT) was an initial most popular model for private sector involvement in infrastructure delivery in Hong Kong for a long time but in contemporary projects, PPPs in Hong Kong adopt design-build-operate (DBO), build-own operate-transfer (BOOT), BOT and build-own-operate (BOO). In Hong Kong, project proposals are submitted to the Legislative Council for approval, based on which specific policies are established for that particular project. The Efficiency Unit (EU) is a well-established institution to assist in the enhancement of private sector involvement in public infrastructure and service provision, established under the Chief Secretary for administration’s office in Hong Kong. The Hong Kong Disneyland Theme Park (HKDL), one of the leading tourist sites, is an example of a successful project procured using the PPP model. Each of the partners, Walt Disney and the Hong Kong government, had clear and mutually acknowledged objectives. The success of the ventures was not just in economic terms; it also helped build broader social capital. By contrast, in the less successful case, the Western Harbour Crossing, neither the economic nor the social objectives were fully achieved. The local community was not happy with the toll structure and their use of the crossing was far less than projected and complaints about affordability high. The Western Harbour Crossing never achieved the traffic volumes necessary to decongest the other harbour crossings, despite the enormous planning that preceded its conceptualization and implementation.