Implementation of Public Private Partnership in Hong Kong

A company the size of the Global Infrastructure Group has many options when considering a project selection process. Any project taken on by the company must align with its goal and corporate strategy. Morris and Jamieson (2004) and Dey (2006) argue that project portfolio management is a “bridge between strategy and operation” and enables organizations to transform the organization's vision into realities or successfully implement their corporate strategies (Khalili-Damghani & Tavana, 2014). In project selection, the company’s senior managers must establish strategic intent. Strategic intent will contain the company’s objectives and should result in a strategy map. Goals should be clear, realistic and measurable. Goals should also have an end state e.g. President Kennedy established a goal of landing a man on the moon within a decade. The Global Infrastructure Group’s senior managers should be leading by establishing a clear strategy and obtainable goals to get all projects focused on meeting these goals by aligning to the organization’s strategy. Once strategy and goals are defined, those involved in the project selection process should consider how the proposed project will align with the goals and strategy. Factors they should consider

A privately financed project was a specified from of PPP that involved not only private sector financing but also controlling ownership. PFPs differed. From the outsourcing or construction by the government. There has been widespread adoption by Governments across the world of Public Private Partnerships (PPPs) as a way of providing public infrastructure. Grimsey and Lewis report that the UK version of PPPs,

Measuring the success of project management has many success criteria. Atkinson states that the early definition of project management success is mainly determined by achieving “The Iron Triangle” including cost, time and quality, which used by Oisen from the 1950’ and continue to be used today (Atkinson, as cited in Oisen, 2009). Atkinson also mentions that using “The Iron Triangle” to measure the success of project management as a discipline has not changed in almost 50 years. Even if project managements meet the success criteria, cost, time and quality, there are many projects continue to be failed. The author suggests using the “Square Route” instead of the “Iron Triangle”. That is because the “Iron Triangle” only takes the limited measurement into consideration but ignores the effects on the stakeholders. This means a successful project has to balance the benefits of organizations and the satisfaction of stakeholders. As suggested in the “Square Route”, different groups of people who can receive benefits from the projects are engaged in the measurement of success (Atkinson, 2009).

Other quantitative measurements should also be considered such as the length of the project, the anticipated payback period and the amount of the initial investment. In addition, this singularly-focused method does not take into consideration the many qualitative factors associated with projects such as their risk, their urgency, and their alignment with corporate strategy.

(Canada, New Zealand, and others soon followed.) Founded on a client-centric philosophy, reforms in government structures, civil service, and public finances have aimed to help public services become more flexible and cater better to individual needs. In particular, this shift toward a delivery-based philosophy has encouraged (i) changes that move the civil service from being a body giving policy advice to one that assures the availability of quality public goods and services; (ii) the discovery of new avenues to finance public sector activities and their servicing; and (iii) greater reliance on the private and not-for-profit sectors, away from a monopoly state provision model to that of a public service economy.7 Increasingly, the lines between private sector and public sector models, depicted one-dimensionally in Table 1, are blurring; managers should not regard the private–public context as a dichotomy but rather as a continuum from “pure private” to “pure public.” At one end of the continuum, one might find transactional marketing, rooted in classical economics, and dealing with one transaction at a time. At the other would be relationship marketing, focused on building relationships. At the core of such relationship building would be trust. Table 1: Private and Public Sector Models

According to the author Munns.K.A, Bjeirmi.F.B (1996), organizations are using different techniques to manage projects. The perception of project management is varied from company to company and country to country. For example, government projects will have different control mechanisms compared to the private sector commercial projects. In private sector the return on investment in financial terms is a priority, and social benefits are the main focus for federally funded projects. Political influences and bureaucrats interferences in the execution and outcome of projects are rampant in public funded initiatives. As the author Munns.K.A, Bjeirmi.F.B (1996) argued, the role of different project management techniques to implement projects successfully has been widely established in areas such as the planning and control of time, cost and quality.

NPV = PV inflows - Cost = Net gain in wealth. Accept project if NPV > 0. Choose between mutually exclusive projects on basis of higher NPV. Adds most value.

To improve infrastructure many possible ways are used in history. One of the popular methods is Public Private Partnership or PPP. PPP is a joint venture of both government authority and private business.

The privatisation initiative in Malaysia was introduced at the correct juncture in the country's development. It is undeniable that the basis for privatisation was in keeping with current economic thinking. The rationale for privatisation is based on the premise that governments should restrict themselves to governing and not venture into running businesses. There are several reasons for this argument, including the undesirability of a large bureaucracy, the inefficiencies of centralised planning and the crowding-out of private investment. The implementation of privatisation could be undertaken in such a manner as to undermine the benefits that would otherwise accrue. The proper conduct of privatisation requires that efficiency and transparency should be considered in the implementation process. Otherwise, the outcomes might not be efficient and there will be an extremely welfare loss.

Public Private Partnership as it became increasingly popular and in maintaining the concept of trying to advertise participation between Private and Public organizations. According to Yescombe (2007) Public and Private Partnerships tries to become a stable part of trying to address key issues and problems that the National is having a hard time in addressing with, as the Local government, having no key powers and as being a liability to the National government is becoming more of a transcending factor in trying to create a more cooperative arrangement between its own public, the government and the private sectors and typically, it serves as more of a long-term nature than of a short term. The Build-Operate-Transfer is having similarities and yet fairly differences on how Public-Private Partnership work. It is better to express the similarities than its differences as both creates both National and Local empowerment to create and convey its own criteria in creating projects that would rather be heavy enough to be dealt with the National level as they needed the cooperation of Private entities.

Haarhoff (2008,14) states that private public partnerships “PPP” can be defined as a concept involving the public and private sectors working in co-operation and partnership to

In recent decades, the rapid urbanisation in China has led to the fast economic growth alone with many social issues, especially housing problem. The Chinese government tried to build public housing to ease this situation. However, the lack of incentives and benefits in local government often obstruct the public housing projects from implementing. Thus, the increasing urbanisation, with most jobs concentrated in large cities, made the housing issue acute in major metropolitan areas. For example, the demand for public housing exceeds supply by approximately 2.6%, 4.2%, and 5.1% per year in Beijing, Shanghai, and Shenzhen, respectively (Zheng, 2012). The public housing problems not only lie in the quantity but also quality. The public housing provided by the local governments are questioned at different levels.

Project financing discipline includes understanding the rationale for project financing, preparation of the financial plan, assessment of the risks, designing the financing mix, and raising the funds. In addition, one must understand the cogent analyses of why some project financing plans have succeeded while others have failed. A knowledge-base is required regarding the design of contractual arrangements to support project financing; issues like the host of legislative provisions, government and administrative constrains, public and private infrastructure partnerships, public and private financing structures; credit requirements of lenders, how to determine the project 's borrowing capacity; how to prepare cash flow projections and use them to measure expected rates of return; tax and accounting considerations; and analytical techniques to validate the project 's feasibility.

The key difference between the PPP and privatization is that the responsibility for delivery and backing a particular activity lies with the private sector in privatization. The PPP, on the other hand, involves full retention of responsibility by the government for rendering services. Under privatization, all the risks inherent in the business rest with the private sector while, under the PPP, risks and rewards are shared between the government and the private sector.

PPP or Public-Private Partnership is another program that aims to support government effort to alleviate the economic status in the countryside. PPP is a scheme implemented by the Aquino administration, tapping both