Potential Benefits of the Implementation of PPP

Topics: Cost, Government, Operating cost Pages: 4 (924 words) Published: October 12, 2013

Potential Benefits of the Implementation of PPP

PPP can take in different forms to meet the specific needs of individual cases. The following is the summary of the benefits of the implementation of PPP.

1. Allowing Government’s Strategic Development

The PPP approach is often appealing to the Government because it allows the Government to concentrate on its core competencies by minimizing its capital costs under a limited budget and consistent with its management philosophy - Maintaining a small government and lean civil services. Among PPP models, the BOT/DBOM models combining the design and construction responsibilities of design-build procurements with operations and maintenance are most often being used in Hong Kong. In fact, this project delivery approach is practiced by several governments around the world. These models transfer design, construction, and operation of a single facility or group of assets to a private sector entity. The Government could take advantage of operational efficiencies regularly associated with private sector participation and enhance unity of responsibilities for delivering services

2. Enhancing Social Development and Business Opportunities

The PPP approach not only alleviates the burden no matter in financial or managerial, but also creates the economic growth, employment and investment opportunities. The private sector entities could be brought into the provision of public services such that the social and public services could be developed sustainably without inducing a great burden to the Government. PPP projects focusing leisure and cultural facilities such as the Ice Sports Centre in Area 45, Tseung Kwan O, Leisure and Cultural Centre in Kwun Tong and the controversial project – WKCD are the examples which demonstrate that the involvement of private sector entities could be of potential benefit to society. Another PPP project, Cyberport, is an example for the government to generate new sources of revenue....
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