Pay-for-Success Pilot in Hong Kong

The Social Innovation and Entrepreneurship Development Fund (SIE Fund) seeks to promote ideas that can test new approaches to meeting social needs. To this end, the Fund is exploring new funding mechanisms including, among others, the Pay-for-Success (PFS) model, and considering piloting projects in this respect. 

PFS, also known as Social Impact Bond or Social Benefit Bond, is an innovative financing model for social services which has been gaining widespread interest across the globe.

The SIE Fund seeks to catalyse the pilot development of PFS in Hong Kong by linking up interested stakeholders, facilitating structuring of pilot PFS projects and assuming the role of Commissioner/Outcome Payor in worthwhile pilot PFS projects with the objectives of: 

• Testing the effectiveness of the PFS model in a local context in terms of, for example:
  • The roles, responsibilities and inputs of different players.
  • Performance/outcome/impact assessment and measurement.
  • Outcome-based payment.
  • Cross-sector collaboration.
  • Service innovation and development of preventive and integrated solutions, etc.
• Helping all parties gain learnings.
• Fostering cross-sector capacity building.
• Using the pilot projects as a showcase for government bureaux and departments and inspiring them to identify applications to other social and poverty-related issues.

PwC was engaged as the independent technical consultant to SIE Fund for this two-year pilot.