ASSESSMENT OF THE VIABILITY OF PUBLIC-PRIVATE PARTNERSHIP (PPP) METHOD FOR SUSTAINABLE HDB CONSTRUCTION

Abstract

The development of public housing in Singapore has always been the sole responsibility of Housing and Development Board (HDB) for the past 50 years and HDB has achieved considerable success in undertaking the responsibility. With the population of Singapore expected to reach 6.5 million people by the year 2030, Singapore government will be required to provide more public housing to cater to the growing population. With the threat of climate change looming, it is important for HDB to develop sustainable public housing. With governments in many countries experiencing constraints in terms of public funds due to the economic downturns and competing demands of different infrastructures, some countries have started turning to Public Private Partnership (PPP) as an alternative procurement method for infrastructure development. The concept of PPP was introduced to Singapore in 2003 with the Water Desalination Plant being the first PPP project. Although PPP concept has been used in Singapore since then, not a single public housing project has ever been developed as a PPP project. Therefore, this dissertation aims to examine the need for sustainable public housing in Singapore and to examine whether private sectors could be engaged under PPP for the development of sustainable public housing. Hence, the aim of the dissertation is to find out whether Public Private Partnership is feasible for the development of sustainable public housing. As part of the research methodology, a survey was conducted to investigate the residents’ perceptions of sustainable public housing and their level of willingness to purchase HDB units built as sustainable housing. Interviews were also conducted with the Housing and Development Board (HDB) as well as private sector’s parties to find out their opinions as regards the implementation of PPP for the development of sustainable public housing in Singapore. From the survey, it was found that a significant portion of Singapore residents still lack awareness about the need for sustainable housing. Their primary concerns when purchasing green HDB are the price, the health factor as well as the energy efficiency of green HDB. Based on the interviews, it was found that PPP in sustainable public housing development might not be viable for reasons such as HDB being the frontrunner in green technology in housing, the efficiency of the current procurement system, and the little amount of value added that the private sector can contribute for the development of sustainable public housing. Thus, based on the findings, it can be concluded that Public Private Partnerships (PPP) is not viable for the development of sustainable public housing in Singapore. Nevertheless, a number of recommendations have been made by the interviewees, which, if implemented, could create the opportunity for the use of PPP in sustainable public housing development.