Bulacan State University City of Malolos, Bulacan S.Y.

: 2013 2014

Midterm Project In Financial Management

Submitted by: Jhoana Jane A. Joson BSMba-3b Submitted to: Ms. Angelica Madaraog (Instructress)

Privatization and Public-Private Partnership, at first, I actually dont like the thought that came with it, but at the time that I had read and analyzed something in relation to it, as possible as I can, it turned out and seemed to be an effective idea. Basically on how to constitute a widespread as well as a sustainable growth on our economy, that might lead into a firm financial stability of our country, also, to make a change, and give way for much better country. Privatization, it is a method of reallocating assets and functions from the public sector to the private sector. Whereas, Public-Private Partnerships (PPP) are partnerships between governments and private entities typically formed with a view to delivering more efficiently certain public goods and services, such as infrastructure development. From the given definition of the two terminologies, lot of thoughts and questions got onto me like: Can it help? Why do we need to adopt those methods? It looks like the public sector is out of fund in order to go with the matter and all the dealings in the business. However, if we identify and realized the initiative of it, we can say that yes, those methods is worth risk taking. If a country embraces the Privatization and Public-Private Partnership method, it doesnt always mean that they have insufficient funds. Nowadays, those methods are used to widen or expand the business within the country. Yes, those have a lot of risks to take for both sector, but if both of them are careful and dedicated on what they want to achieve, then there is a high possibility that the result is great. As regards of its effect on our countrys financial stability, I can say that there is an advantage as well as disadvantage on it. The Philippines is said to be undergoing an era of reform at the present time. One of the reasons is because our government put up a lot of program and line-up that allows different investors to do business with them in a stable economic environment strengthens by reliable and consistent governance. As a result, various investors take the risk and put up their money for the project or business, and since it has sufficient funds or maybe an ample, both sectors may now plan to improve and expand it from a small into a country-wide project. Thus, doing the project create services and job opportunities, that helps to improve the countrys financial stability and reduced the poverty on it. The best example occurs in the country is the

privatization of Manila Water Company (MWCI), earlier known as Manila Metropolitan Waterworks and Sewerage Services (MWSS). MWSS has a poor performance, until it was privatized. They expand it coverage, and later increased operational efficiency to achieve profitability. It has yet to remove the entire governmental financial burden. Nevertheless, those methods are not always a good idea. There are some points wherein privatization and PPP tend to bring down the financial stability of the country. Probably because there is no comprehensible agreement between both of the public and private sector, or maybe one of the two sectors is overpowering, or its just that the project failed to attract investors interest. Generally speaking, it has always been an advantage and disadvantage on it. It just matter on how both sector deal and handle the project for the countrys sustainable development and financial stability.