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PPP - A Small Step Forward

Following many years of discussion and debate, it looks as though Hong Kong may finally be making moves to proceed with its first classic Public Private Partnership (PPP) Project.

The Hospital Authority has issued invitations for tender to advise it on the business case for PPP options for the hospital extension at Phase Two of the North Lantau. At this stage the consultancy role on offer is to look at the options for the implementation of the extension. The successful tenderer will face the difficult challenge of satisfying the need to develop a bankable project. whilst addressing the concerns of a new Legislative Council and labour representatives. This is likely to prove a difficult balancing act, upon which the future PPP in the city is likely to turn.

Lovells was involved in the drafting of the original UK National Health Service PPP standard form of contract and it is likely that any health related PPPs that progress in Hong Kong would utilise many elements of that UK approach. Within South-East Asia, Singapore is the country that is perhaps most progressed in terms of PPP delivery of infrastructure and Lovells has been involved in all PPPs that have progressed in Singapore, including, notably, the multi-billion dollar SportsHub PPP for a new national stadium, currently in its final procurement stages.

Lovells, Asia Projects (Engineering & Construction) Newsletter
September 2008

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