Mkapa explains rescinding of City Water contract
CORRESPONDENT
Arumeru
FORMER president Benjamin Mkapa has defended the dissolution of a contract between the government and City Water, saying the company failed to improve the delivery of potable water in Dar es Salaam.
Mr. Mkapa told participants in the 17th General Meeting of the Evangelical Lutheran Church in Tanzania (ELCT) here yesterday, that even donors withheld funds after seeing City Water was not honouring the contract.
The erstwhile president, who was presenting a paper on: Privatization and Good Neighbourliness at Tumaini University College at Makumira, said after cancellation of the contract donors resumed funding the sector.
He explained that the then Minister for Water and Livestock Development, Mr. Edward Lowassa, took the decision to rescind the contract after realizing that they were doing shoddy work.
It happened that after dissolution of the contract and informing the donor community and the World Bank about the decision, money started pouring in for improving water supply, said Mr. Mkapa.
He told the participants that he fully supported the current government on its move to review some contracts which looked askew, saying that will raise national income.
The former president defended privatization, explaining that it was necessary to lessen a burden on the government of supporting ailing parastatal companies.
Touching on religious institutions, Mr. Mkapa exhorted them to be exemplary in preaching unity and civility, themes which will help in promoting peace and love in Tanzania.
Investors in the City Water project have now taken their disagreement with the government to the International Centre for the Settlement of Investment Disputes (ICSID) for arbitration.
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CORRESPONDENT
Arumeru
FORMER president Benjamin Mkapa has defended the dissolution of a contract between the government and City Water, saying the company failed to improve the delivery of potable water in Dar es Salaam.
Mr. Mkapa told participants in the 17th General Meeting of the Evangelical Lutheran Church in Tanzania (ELCT) here yesterday, that even donors withheld funds after seeing City Water was not honouring the contract.
The erstwhile president, who was presenting a paper on: Privatization and Good Neighbourliness at Tumaini University College at Makumira, said after cancellation of the contract donors resumed funding the sector.
He explained that the then Minister for Water and Livestock Development, Mr. Edward Lowassa, took the decision to rescind the contract after realizing that they were doing shoddy work.
It happened that after dissolution of the contract and informing the donor community and the World Bank about the decision, money started pouring in for improving water supply, said Mr. Mkapa.
He told the participants that he fully supported the current government on its move to review some contracts which looked askew, saying that will raise national income.
The former president defended privatization, explaining that it was necessary to lessen a burden on the government of supporting ailing parastatal companies.
Touching on religious institutions, Mr. Mkapa exhorted them to be exemplary in preaching unity and civility, themes which will help in promoting peace and love in Tanzania.
Investors in the City Water project have now taken their disagreement with the government to the International Centre for the Settlement of Investment Disputes (ICSID) for arbitration.
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