CHAPTER I

INTRODUCTION

1.1 Rationale for the Study

Myanmar is implementing market oriented economic system for economic development.

In accordance with the principles of market economy, economic reforms are being done by the
state. Of these reforms, Public Private Partnership (PPP) is one of the activities for promoting
Myanmar economy. PPP is a long-term contract between a private party and a government
entity, for providing a public asset or service, in which the private party bears a significant risk
and management responsibility.

In Myanmar, the State-Owned Enterprises are facing problems such as losses that
translate into deficits in the state budget, shortage of funds for expansion, heavy debts, operating
problems and inability to realize their full production capacity. All of these above factors make it
imperative that the State-Owned Enterprises be transferred to the private sector. Ensuring the
viability of State-Owned Enterprises is one of the Industry Policy of Myanmar. Government is
inviting private sector to implement PPP for obtaining technical know-how and capital for
promoting industrial sector and for survival of State-Owned Enterprises.

Advantages of PPP include help controlling cost, improving efficiency and effectiveness
of production, transfer of skills, knowledge, creation of added value, value for money, mitigating
capacity constraints and bottlenecks, greater innovation, enhance competition. However, PPP
also have some drawbacks.

The Glass Factories were already privatized in most countries and the governments were
not interfered in any whish ways relating to these factories. The private businesses can provide
employment opportunities for workers released from inefficient public factories and can promote
competition between tax-paying entities and can generate needed funds for government. Glass
production involves two main methods – the float glass process that produces sheet glass, and
glassblowing that produces bottles and other containers.

This paper is intended to reveal the administration, production and financial condition of
Glass Factory (Kyaukse) after Public Private Partnership (PPP). The study also examines the life
improvement and satisfaction of employee of Kyaukse Glass Factory by implementing Public
Private Partnership (PPP). Kyaukse Glass Factory is situated in Kyaukse Township, Mandalay
Region and was constructed by the China Construction & Agricultural Machinery Company
(CAMC), and inaugurated on 11 January 2013. The factory has a capacity of 427000 tons per
year, which makes it the top glass factory in Myanmar. This Factory mainly produces tinted
glass, clear glass, and mirrors.

To cater to the increasing demand and to improve the quality of glass production,
Myanmar glass and glassware producers, suppliers, and traders will have to monitor market
trends, constantly upgrade glass processing technologies, and provide more value-added services
for customers.

This study will encompass major issues important for the assessment of improvement of
life and satisfaction of employee of Kyaukse Glass Factory. It will reflect current situation of this
Factory, taking into account internal strengths and weaknesses, and external threats and
opportunities as well as current productivity, process, costs, revenues and profits.

This is a very important and crucial precondition for the future factory development
strategy, thus, this study aim to examine the administration, production and financial condition
and the improvement of life and the satisfaction of employee of Kyaukse Glass Factory by
implementing Public Private Partnership (PPP).

1.2 Objective of the Study

The objectives of this study are as follows:

(1) To study the administration, production and financial condition of Kyaukse Glass
Factory.
(2) To analyze the improvement of the life and satisfaction of employees of Kyaukse
Glass Factory by implementing Public Private Partnership (PPP).

1.3 Method of the Study

This study applies the descriptive method and it uses both primary data as well as
secondary data. The primary data are collected by asking the conditions about the improvement
of the life and satisfaction of employees of Kyaukse Glass Factory by implementing Public
Private Partnership (PPP) to the employees of different level. The respondents are selected by
cross section sampling method. The secondary data are collected by library research, documents
of factory, records from respective departments and related website.

1.4 Scope and Limitation of the Study

This study focuses only on the implementation Public Private Partnership (PPP) of Glass
Factory (Kyaukse) for the period of (2012-2013) to (2018-2019) fiscal year. The study is dealing
with the aspect of Public Private Partnership (PPP). The study covers only the administration,
production and financial condition and the improvement of the life and satisfaction of employees
of Kyaukse Glass Factory. The study does not cover examine the analysis for all glass factories
in Myanmar.

1.5 Organization of the Study

The study is composed of five chapters. The first chapter is the introduction chapter
which presents the rationale of the study, the objectives of the study, the method of the study, the
scope and limitations of the study and the organization of the study. The second chapter presents
the literature review about the Public Private Partnership (PPP). This chapter reviews the
concepts of Public Private Partnership (PPP), the forms and major stakeholders of PPP, the pros
and cons of PPP, the importance and reasons of PPP, and the previous studies on PPP in State-
Owned Enterprises (SOEs). The third chapter presents the background information of glass
factories under No. (2) Heavy Industrial Enterprise and implementation of PPP. It consists of the
background of the Ministry of Industry and No. (2) Heavy Industrial Enterprise, the overview of
factories under No. (2) Heavy Enterprise, the Public Private Partnership (PPP) of State Owned
Enterprises under No. (2) Heavy Enterprise, the procedures in implementing PPP of glass
factories under No. (2) Heavy Enterprise, and the profile of Kyaukse Glass Factory. The fourth
chapter presents the analysis on the implementation of Public Private Partnership (PPP), and
describes the administration of Kyaukse Glass Factory, the production of Kyaukse Glass Factory,
the cost and benefit of Kyaukse Glass Factory, the survey profile, the characteristic of
respondents, the improvement of the life and satisfaction of employees of Kyaukse Glass Factory
by implementing Public Private Partnership (PPP). The last chapter is the conclusion which
includes the findings and the suggestions.