What is Privatization? Privatization is the process of transferring ownership of a business, enterprise, agency or public service from the public sector (The state or government) to the private sector (business that operate for a private profit) or to private non profit organizations. -

PRIVATIZATION Involving the sale or lease of government assets, power companies, banks, water companies, telecommunication companies, etc. and in the infrastructure sector, can be achieved through various means in a public/private partnership: 1. BOOT or BOO system; 2. Rehabilitate-Operate-Transfer (ROT); 3. Build-Transfer-Operate (BTO) -

BUILD-OPERATE-TRANSFER- is a form of project financing wherein a private entity receives a concession from the private or public sector to finance, design, construct and operate a facility stated in the concession contract. WHAT IS BUILD-OPERATE- TRANSFER-?

How did these contribute to the alleviation of the fiscal deficit?

RISK & DISADVANTAGE OF BUILD- OPERATE - TRANSFER (BOT) Diverse objectives between the contructors and the operators Duplication of functions and resources in some cases in the consortium and in the subcontracting companies It means the investor/client though technically owning the facility being set-up it leaves the responsibility to a 3 rd party Middle man will work on the looking for employees, facilities, location as well as ironing out legalities in a given period of time wherein eventually transfer responsibilities to client according to the contract agreement.