Kubwajinga
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- Jan 23, 2008
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Dar in yet another crisis over water contract turned sour
Monday, 17 March 2008
By Mohamed Said
DAR ES SALAAM, TANZANIA Tanzania has to attend yet another arbitration in which government is alleged to have mishandled a contract given to City Water, a Tanzanian registered firm but with British/German roots recently.
City Water alleges that it encountered a loss of US$20-25million when the government decided to terminate its contract and expel its executives in 2005.
On its part, the government accuses the firm for its inability to meet the set performance targets.
In an arbitration filed at the International Centre for Settlement of Investment Disputes (ICSID) in August 2005 City Water alleges: Breaches by the United Republic of Tanzania of its obligations under both international and domestic law concerning foreign investment which have caused loss in the region of US$ 20 to 25 million.
ICSID is an arm of the World Bank. The Bank gave Tanzania $140million to privatise the Dar es Salaam Citys water and sewerage services. Dar is the most populated city in the country with an estimated three million plus residents.
Mr. Elias Mwashuya, the acting director of the Lawyers Environmental Action Tanzania (LEAT) told East African Business Week that the arbitration has attracted civic societies attention.
We have filed amicus curiae with the ICSID seeking to have access to documents related to the case, Mr. Mwashuya said.
ICSID seat is in Washington DC.
Also in the group is the Dar-based Tanzania Gender Network Group (TGNP), The Legal and Human Rights Centre and the International Institute for Sustainable Development.
The government and City Water were locked in a dispute which however saw the former emerging the winner after a London-based tribunal which operates under the United Nations Commission on International Trade Law (UNCITRAL) had dismissed City Waters claims that the government unfairly ended its contract.
The tribunal awarded Tanzania $6 million in damages and $1 million in legal costs.
Mr. Mwashuya said their request for the amicus curiae status has yet to be replied.(Amicus curiae status, is a legal Latin phrase, literally translated as friend of the court, that refers to someone, not a party to a case, who volunteers to offer information on a point of law or some other aspect of the case to assist the court in deciding a matter before it).
We want to be friends of the arbitral tribunal, he said. City Water has been up in arms with activists who are campaigning against the privatisation of public utilities such as water, ports, city transport and rail in weak economies like Tanzania.
The campaigners form pressure groups to discourage privatization of sensitive areas of economy arguing that it widens the gap between the haves and have-nots, increases the cost of living and marginalises the economically vulnerable groups such as women, the poor and children.
Tanzania bowed to international financiers pressureconfidential pending an outcome and protects evidence. Observers say attempts by third world countries to privatise their water supply services had disappointing results like in Bolivia, Gambia and Mali.
EABW
Monday, 17 March 2008
By Mohamed Said
DAR ES SALAAM, TANZANIA Tanzania has to attend yet another arbitration in which government is alleged to have mishandled a contract given to City Water, a Tanzanian registered firm but with British/German roots recently.
City Water alleges that it encountered a loss of US$20-25million when the government decided to terminate its contract and expel its executives in 2005.
On its part, the government accuses the firm for its inability to meet the set performance targets.
In an arbitration filed at the International Centre for Settlement of Investment Disputes (ICSID) in August 2005 City Water alleges: Breaches by the United Republic of Tanzania of its obligations under both international and domestic law concerning foreign investment which have caused loss in the region of US$ 20 to 25 million.
ICSID is an arm of the World Bank. The Bank gave Tanzania $140million to privatise the Dar es Salaam Citys water and sewerage services. Dar is the most populated city in the country with an estimated three million plus residents.
Mr. Elias Mwashuya, the acting director of the Lawyers Environmental Action Tanzania (LEAT) told East African Business Week that the arbitration has attracted civic societies attention.
We have filed amicus curiae with the ICSID seeking to have access to documents related to the case, Mr. Mwashuya said.
ICSID seat is in Washington DC.
Also in the group is the Dar-based Tanzania Gender Network Group (TGNP), The Legal and Human Rights Centre and the International Institute for Sustainable Development.
The government and City Water were locked in a dispute which however saw the former emerging the winner after a London-based tribunal which operates under the United Nations Commission on International Trade Law (UNCITRAL) had dismissed City Waters claims that the government unfairly ended its contract.
The tribunal awarded Tanzania $6 million in damages and $1 million in legal costs.
Mr. Mwashuya said their request for the amicus curiae status has yet to be replied.(Amicus curiae status, is a legal Latin phrase, literally translated as friend of the court, that refers to someone, not a party to a case, who volunteers to offer information on a point of law or some other aspect of the case to assist the court in deciding a matter before it).
We want to be friends of the arbitral tribunal, he said. City Water has been up in arms with activists who are campaigning against the privatisation of public utilities such as water, ports, city transport and rail in weak economies like Tanzania.
The campaigners form pressure groups to discourage privatization of sensitive areas of economy arguing that it widens the gap between the haves and have-nots, increases the cost of living and marginalises the economically vulnerable groups such as women, the poor and children.
Tanzania bowed to international financiers pressureconfidential pending an outcome and protects evidence. Observers say attempts by third world countries to privatise their water supply services had disappointing results like in Bolivia, Gambia and Mali.
EABW