XN000022-1997-04-05 — Page 3

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Private sector is the engine of growth: S for Tsy

Hong Kong believes that the private sector is the engine of growth. As a corollary to that, strict control over government spending is maintained so as to leave as much resources as possible in the economy for further private-sector-led growth.

The Secretary for the Treasury, Mr K C Kwong said this today (Saturday) when making an intervention at a plenary session of the Finance Ministers Meeting of the Asia Pacific Economic Co-operation (APEC) being held in Cebu, the Philippines.

Mr Kwong said unlike many other places, a large part of Hong Kong's infrastructural developments was thus financed ab initio by the private sector.

He cited the eight container terminals in Hong Kong, its domestic and international telecommunications systems, its local electricity supply as notable examples of such infrastructural developments.

"The private sector is also actively involved through other modes of financing in infrastructure development in Hong Kong," Mr Kwong said.

They include

joint ventures with Government, franchises, Build-Operate- Transfer schemes and capital financing.

Mr Kwong said that whichever mode was chosen, the Government played a pivotal role as a facilitator and promoter.

"Specifically, we provide a level playing field for investors through the establishment of a clear and transparent tendering system, a clear legal and contractual framework for the projects which would reduce business risks and at the same time protect the interests of the community as well as a pro-active government input to ensure efficient co-ordination and collaboration between Government and the private sector," he said.

"We have, over the years, developed a set of practices which are clean, open and transparent. This is crucial for business confidence.

"Our tendering and procurement procedures, which allow for competitive bidding and objective assessment on the basis of pre-determined criteria, are consistent with the WTO Government Procurement Code.