The water margin
Tanzania was glad to secure the services of a British-led consortium to run the newly privatised water system in its capital Dar es Salaam. But then the price of water started to rise … Xan Rice reports
Thursday August 16, 2007
The Guardian
http://www.guardian.co.uk/g2/story/0,,2149462,00.html
In summary:
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The World Bank twists Tanzania’s arm into privatising its water supply.
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UK DFID, Tanzania’s biggest donor, gives £444,000 to a PR firm to promote privatisation.
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Contract is awarded to British firm Biwater to supply water.
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Biwater mess up, price of water rises while quality and quantity no better.
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World Bank awards the project top score despite utter failure.
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Biwater also fail in their sole social obligation – helping poorest households to connect.
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Tanzanian Govt finally cancel contract (under election pressure) 22 months into a 10year contract
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Biwater take Tanzania to World Bank secret tribunal, asking for £10m-£12.5m compensation
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Over two thirds of such cases are ruled in the investors favour.
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So, UK could end up funding the payout to Biwater – which is owned by a multimillionaire.
