Following is a question by the Hon Audrey Eu and an oral reply by the Secretary for the Environment, Transport and Works, Dr Sarah Liao, in the Legislative Council meeting today (March 17) :
Question:
In the 2004 Policy Agenda, the Environment, Transport and Works Bureau proposed to adopt a Public-Private-Partnership ("PPP") approach in the delivery of large scale public works projects. In this connection, will the Government inform this Council:
(a) of the criteria for determining the types of public works projects to be delivered by way of the PPP approach;
(b) of the public works projects which will be delivered by way of the PPP approach in the next three years; and
(c) given that Article 73(3) of the Basic Law stipulates that the Legislative Council shall exercise the powers and functions to approve public expenditure, how it will ensure that the delivery of public works projects by way of the PPP approach will not contravene the spirit of that provision?
Reply:
Madam President,
(a) While considering the delivery of a public works project, it is essential for the Government to establish its justifications, urgency, economic benefits, technical feasibility and the government's affordability; and put into perspective its priority against other public works projects. Infrastructure development and community facilities can be implemented by an array of PPP approaches. A number of criteria will be considered by bureaux and departments when provisions are being made for new facilities. They include the policy objectives and needs of the respective bureaux and departments, the characteristics and requirements of the facilities concerned, the business opportunity brought by the project as well as the cost-effectiveness of the partnership. All these factors will be taken into account when selecting the best option for project delivery. There is no hard-and-fast rule for determining the types of public works projects to be delivered by way of the PPP approach.
(b) The Home Affairs Bureau has identified two pilot projects for PPP. One comprises the construction of an ice sports centre, a bowling centre and a town park in Tseung Kwan O. The other project is for a leisure and cultural centre in Kwun Tong. The Government has drawn up development plans for these two projects, and will invite the private sector to finance, build and operate the facilities after consulting the District Councils concerned and obtaining the support of the Town Planning Board. We have recently completed a preliminary feasibility study on the reprovisioning of the Sha Tin Water Treatment Works through PPP at a cost of some $6 billion, and the results are encouraging. We are now considering the way forward in the light of the findings from the study. We will continue to study and actively consider other possible projects for PPP implementation and follow up accordingly.
(c) Under the PPP approach, the private sectors can propose various financial arrangements with reference to the different nature of and requirements for public works projects. The Government will abide by the provisions in the Basic Law and be accountable to the Legislative Council when considering the proposals. Should the proposals involve public expenditure, the Government will apply for funding in accordance with legal requirements.
Ends/Wednesday, March 17, 2004
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