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Private Sector Involvement, Complaints Handling and Research – Induction Training 2011. Byron Lam ADEU(3) 21 December 2011. Today's Topics – Private Sector Involvement (PSI). What is PSI? Outsourcing Public Private Partnership (PPP) EU's Role in PSI Programme.

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byron lam adeu 3 21 december 2011

Private Sector Involvement,

Complaints Handling and Research

– Induction Training 2011

Byron Lam


21 December 2011

today s topics private sector involvement psi
Today's Topics – Private Sector Involvement (PSI)
  • What is PSI?
  • Outsourcing
  • Public Private Partnership (PPP)
  • EU's Role in PSI Programme
today s topics complaints handling
Today's Topics – Complaints Handling
  • Value of Complaints
  • Policy Address 2008-09
  • The Government's Performance in Complaints Handling
  • Helping Departments to Improve their Complaints Handling Mechanisms
today s topics research
Today's Topics – Research
  • Why research?
  • A recent example
what is psi

A strategy for improving public services by involving the private sector

  • Make the best use of both the public and privatesectors
  • Optimise Government's share of gross domestic product
  • Public and private sectors complement each other
    • Private sector: inject new thinking and initiatives
    • Government: focus on core services
What is PSI?
why psi


  • Focus on core activities
  • Contain size of civil service
  • Improve service quality / output
  • Access to private sector skills / expertise / technology
  • Ageing in the public service

The Target

  • Optimising private sector involvement
Why PSI?

Marine refuse scavenging of Marine Department

level of private sector involvement
Level of Private Sector Involvement

Corporate Structures

Trading Fund


Level of private sector involvement

Contracting in

Public Private Partnerships(PPPs)




Private Sector Processes

common forms of private sector involvement


  • According to EU's outsourcing survey in 2010
    • ~5,000 outsourced contracts
    • Total annualisedoutsourcing expenditure ~HK$52 billion
Common Forms of Private Sector Involvement
  • Public Private Partnership (PPP)
  • Used for development of economic infrastructure + service provision
  • Recent examples
    • Hong Kong Disneyland
    • Asia World Expo
    • Ex-Marine Police HQs
    • Ngong Ping 360°
outsourcing process
Outsourcing Process

Business case development

Tendering and selection

Managing the contract

survey trend in government outsourcing
Survey - Trend in Government Outsourcing

No. of contracts

Contract value ($ M)

what is ppp

An approach where the public and the private sectors both bring their complementary skills to a project, with varying levels of involvement and responsibility


  • Large scale
  • Long term
  • Involves development of facilities anddelivery of services
  • Whole of life approach
  • Private / public finance
What is PPP?


Former Marine Police Headquarters

types of ppps in hong kong

Early experience mainly on infrastructure facilities:

  • Build - Operate - Transfer (BOT)
    • Cross-harbour tunnels in mid-1970's
  • Design - Build - Operate (DBO)
    • Solid waste facilities, refuse transfer stations, landfills in late 1980's
  • Private Sector ParticipationScheme
    • Public housing estates
Types of PPPs in Hong Kong
ppp projects recent experience

Ngong Ping 360o

  • A Build-Operate-Transfer project
  • 30-year franchise to the MTR Corporation Limited (MTRCL)
  • Initial investment of HK$750 million by MTRCL
PPP Projects – Recent Experience
challenges to psi projects
Challenges to PSI Projects

Town Planning andLand Use

Need to construct Business Case

for PSI Projects

Transparency andaccountability

Availability of expertiseand experience




promoting private sector involvement

Assist government bureaux and departments to enhance private sector involvement in the delivery of public services

  • Provide consultancy services
  • Organise training courses, seminars, experience sharing sessions, etc.
Promoting Private Sector Involvement
promoting private sector involvement1
Promoting Private Sector Involvement

Promulgate best practices

how we are performing citizens impression
How we are performing – Citizens' Impression

Hong Kong Government Service Excellence Index (HKGovSEI)

Ratings on Satisfaction with Departments' Complaints Handling

Passing mark

typical complaints handling issues
Typical Complaints Handling Issues
  • Discouraging complaints
  • Not recording complaints
  • Little / no follow-up
  • Cross-departmental weaknesses
  • Reports not compiled
  • Reports not seen by senior officials
  • Not learning from complaints

What have we done to help departments (1)?

  • Surveys (reports available at
  • Survey on departmental complaints handling mechanisms in October 2008
  • Survey on departmental public enquiries regimes inJanuary 2009
  • Survey on departmental complaints and public enquiries handling mechanisms in March 2010
what have we done to help departments 2
What have we done to help departments (2)?
  • Seminars
  • Complaints Handling Seminar for Directorate Officers in December 2008
  • Seminar cum Exhibition on Complaints Handling in October 2009
what have we done to help departments 3
What have we done to help departments (3)?
  • General Circular and Publications
  • Public Sector Reform Reporton Complaints Handling in January 2009
  • General Circular No. 6/2009on Complaints Handling Mechanism in August 2009
  • A Guide to ComplaintsHandling and Public Enquiriesin August 2009
why research
Why Research ?
  • Understand the current trends on overseas PSR initiatives
  • Explore opportunities to adopt new ideas of PSR in local context
  • Design, promote and deliver new services to B/Ds
a recent example

Efficiency Unit Sustainability Index

A recent example

A Balanced Assessment Framework for Public Organisations

Overseas Publications




Academic Research

An idea on

productivity measurement





Development of EUSI

More comprehensive!

More comprehensive … More comprehensive …

More comprehensive … More comprehensive …

More comprehensive … More comprehensive …

How about a more comprehensive evaluation on B/Ds’ performance?

Good idea …

How about … ?

It doesn’t work because…

Better if …

Revise the proposal to incorporate various comments

Collect insights from senior management on initial proposal (be prepared for challenges…)



development of eu si
Development of EUSI


A comprehensive framework to Measure B/Ds’ performance

Economy& Community

Service Outcome



Learning & Growth


Proposal revised

development of eu si1
Development of EUSI



Introduce the service through CRM visits

Go ahead.

Senior management’s endorsement



Deliver service to clients