Enhancing Good Government through
Public Enterprise (Privatization)
Spatial Information Management
What is Privatization?
A government policy of transferring the agencies
functions or assets of government into the hands
and control of the private sector.
1. Contracting out services
Ex: Invitation to Bid
– Is an open market competition among interested
contractors to post the lowest or highest bid
Request for Proposal (RFP).
– Mechanism that inviting all qualified group to
presents proposal to government that provides in
details how the group worked perform the service
2. Public-Private Collaboration
– A cooperative agreement between a
government and a private sector.
– It is sometimes what we called BOT (BuildOperate-Transfer), a scheme where one
party builds an infrastructure like roads or
markets and other entity operates it.
– Refers to right of the government to grant
program/service on an exclusive basis to private
individuals/groups in a defined locality.
4. Load/assets shedding
– Refers when a government sells out a
facility/equipment or simply discontinues the
individual/groups may come in to cover
particular service delivery.
– Volunteers serve as assistance in time of
Roles of Public Administration
1. Honest, accurate translation of political
leaders into more specifically designed policies
2. Flexibility in dealing with special cases at the
point of delivery
3. But this flexibility should not be used
4. Feedback of expert advices, active
imagination and assertive inquiry on the aprt of
5. Efficiency. It is a hope that all of these can be
done without costing too much.
1. Job separation
2. Price increase in the utility
Waves of Privatization
– President C. C. Aquino Proclamation No. 50-A
which provides policy and procedural
framework for privatization of government
The program aims to:
1. Improve efficiency and provide better quality
2. Focus government energies and resources on
providing basic public goods/services.
3. Create a favourable investment climate
4. Broaden ownership base & develop the capital
5. Generate revenues for priority government
During Aquino Administration:
– 296 public sector enterprise & 399 nonperforming assets transferred to government by
the PNB and DBP
Asset Privatization Trust (APT) was created to
dispose off GOCCs.
Government sold 230 assets with net proceeds
of 14.3 B
APT was defunct into Privatization Management
– He took initiative to amend BOT law to make it
flexible; allowing nine times of schemes, not only
BOT including Bill-Transfer-Bill Lease Transfer
– He proposed EPIRA Law & Water Crisis Act
– During His term, RA 6957 (Phil. Infrastructure
Privatization Program) and RA 7718 (Independent
Power Producers) are being passed.
Estrada Administration (1998)
– By virtue of E.O 12, he re-affirmed the private
sector in economic growth and expanded the scope
of privatization by directing other government
agencies including LGU to identify additional assets
or activities that are best handled by private sector.
– As a result, certain public services are being
privatized like the construction of public market
and garbage collection
Gloria M. Arroyo
– Approved the EPIRA law (June 2001)
– Paved the way for privatization of NAPOCOR.
What is GOCC?
– By virtue of PD 2097
A stock or non-stock corporation whether
performing government or proprietary functions
which is directly chartered by special law/organized
under the general corporation law which is owned
and controlled by government directly or indirectly
through a parent corporation (to the extent of at
least majority of stocks)
Aims of GOCC
1. To reduce involvement of the state;
2. To reduce the financial burden of the
3. To promote greater efficiency; and
4. To raise funds from the sale of GOCCs and their
Ground Rules for GOCCs
GOCC should perform efficiently and effectively
Basic types of Privatization
a. The sale of government assets such as railroads
to a corporation or public housing units to their
b. The private financing of public utilities such a
stool highways; and
c. The private provisions of service like garbage
GOCCs Technical Reform/Programs
1. Improving corporate governance;
2. Creation of effective oversight body;
3. Rationalization of GOCCs portfolio; and
4. Review of the performance evaluation system.
Public Private Enterprises
– Refers to the recognition of the primary role of
the private sector in economic development,
under the policies of deregulation, economic
liberalization and privatization.
– The private sector imbued with a sense of
responsibility, as they shall support worthy
social, civic, artistic and nationalistic projects for
the benefits of the community (Albueva as cited
What is e-Government?
– Refers to the use of Information Technology in
particular the internet, to deliver services in
much more convenient, customer-oriented and
altogether different and better way
The broader definition of e-Government is the
adoption of any information and communication
technology by government. (Owen, R.)
Medium of e-Government
– The technologies include video conferencing,
touch tone data entry, CD-Roms, Internet and
Private Intranet as well as technologies such as
interactive television and internet access via
mobile phone and personal assistance. (Owen,
Computerization and the application of
Technology advancement have been used as well
in governance, commerce & international
relations which made it accessible to the people.
Two (2) Phases of e-Government
1. Internal – Operation of Government itself.
• Electronic procurement;
• E-Forms; and
• Web-based management information
2. External – Online services offered to citizens
• Application form for employment and
• Bill payment portals
Public Administrators nowadays have embraced
technology as part of their daily lives to
promote/improve their performance in
allocating services to the public
Services of e-Government
A. Pushing Information over the Internet:
- Regulatory Policies;
- General Holidays;
- Public Hearing Schedules; and
- Brief Issues and Notification
B. Two-way communication between agency and
C. Governance, online polling, voting and
e-Government in the
– July 2000
Government Information System Plan
(GISP) was approved and adopted as a
framework for computerization programs in
government agency pursuant to E. O 265.
• Private Sector and e-Government
The private sector is recognized as partner in the
country's ICT development efforts.
Example of Government websites:
-- Office of the President
-- Department of Budget
-- Department of Social
Welfare and Development www.dswd.gov.ph