Equilibrium between development and conservation : evaluation of the 'social' public-private-partnership (PPP) in heritage conservation based on the revitalising historic buildings through partnership scheme

Abstract

The Commissioner for Heritage's Office (.CHO.) was established as a response to the 2007-2008 Chief Executive Policy Address and was regarded as a milestone in stimulating heritage conservation in Hong Kong. One of the major initiatives implemented by the CHO is the Revitalising Historic Buildings Through Partnership Scheme (Revitalisation Scheme) for non-profit-making organisations (NPOs) to operate Government-owned historic buildings. There is a need to evaluate the 'social' public-private-partnership (PPP) of Revitalisation Scheme as it matures. As the Development Bureau is releasing more historic buildings under the Scheme and question arises if it is feasible in long-run and whether private enterprises can be eligible to participate to diversify our historic buildings.

An analysis of several cases under the Revitalisation Scheme and overseas case studies were used. Interviews were conducted with stakeholders from the public, private and third sectors of the Revitalisation Scheme to understand their relationships. Interviewees included operators of the historic buildings, project architects, advisory board member and academia. Stakeholders from overseas case study were also interviewed.

It was discovered that the use of partnership in the Revitalisation Scheme is successful in drawing funding from the public sector and expertise from the private sector. The establishment of CHO and its institutional arrangement had significantly reduced the risk of the private sector and risk of over-commercialisation of historic buildings. But the selection of historic buildings to be included in the Revitalisation Scheme, selection of applicants, financial stability, building requirements, management concerns and lack of private enterprise participation limits the effectiveness of heritage PPP.

In order to build upon the Revitalisation Scheme, NPOs and private enterprises should form a consortium for a better distribution of risks and responsibilities in the partnership. The private enterprise will be responsible for the primary business in operating the historic building, while the third sector can commit to community input and the protection of heritage values. A profit-sharing approach between the public, private and third sector will create long-term benefits for the Revitalisation Scheme. The Government as the public sector should apply appropriate zoning regulations and flexibility in the buildings codes to establish a long term strategy of the Revitalisation Scheme.

The connection and the theory between PPP and heritage conservation form a basis to evaluate the innovative approach of the Revitalisation Scheme. As we witnessed several award-winning projects under the scheme, this analysis will examine their implications and measures to ensure the feasibility of the Revitalisation Scheme in long run.