(under) development. In May, UK water company Biwater was kicked out of a controversial water privatisation by the Government of Tanzania Just two years into a ten year contract, after making less than half the required Investment and failing to Improve services In the commercial capital Dar es Salaam.
The World Development Movement (WDM) have condemned support by the UK Government and the World Bank for the privatisation.
The UK Department for International Development (DFID) spent £273,000 from the UK aid budget to pay British consultancy Adam Smith International to produce public rolations matorials to porsuado a sceptical Tanzanlan public of the merits of the privatisation.
Inttially part of an International Monetary Fund (IMF) Structural Adjustment Programme, the privatisation was made a condition of Tanzania receiving debt rellet by the World Bank.
WDM welcomed the decision of Tanzanian goverment to revoke the contract and called on the UK Government to stop supporting water privatisation In developing countries. UK ald budget, money that should go to privatisation In Tanzania." Lowassa said: Salaam and in the neighbouring places persistent complaints by city residents over Incompotence of the flrm." Tanzanlan shllilngs (over £1.8m).
Hoad of Pollcy, Peter Hardstalf sald: "This Is yet another example of water privatisation failing to dellver clean water to poor communities... It Is a scandal that the reduce poverty, was used to push water
Announcing the decision to cancel the contract on May 13, Water Minister Edward
"The water supply services in Dar es have deteriorated rather than improving since this firm took over some two years ago.The revocation was made following
City Water (the Joint venture company he said. Involving Biwater) should have invested $8.5 milllon during the first two years, but so far only $4.1 million had been Invested.
They also apparently failed to submit collected revenue and failed to pay their lease fee which had accumulated to 3.6bn
Later Lowassa also polnted out that "City Water has also failed to contribute to the fund that was intended to supply water to the low Income people".
A now Institution, to be known as Dar es Salaam Water and Sowerage Corporation (Dawasco), wlll be formed immediately to replace City Water. Dawasco will inherit all local City Water employees.
The Secretary of the City Water branch of the Tanzania Union of industrial and Commercial Workers (TUICO), Juma Mtoro, has said that, in principle, they supported the government's action to disband CWS, but they also wanted protection in terms of working conditions:
"We support the government's move to torminate the contract with City Water, but we also want to be assured about our contracts of service with the now employer,"
Biwater's involvement In the Dar os Salaam contract is covered by the UK Export Credit Guarantee Department so the British taxpayer could end up footing the blll for the government's disastrous pollcy of promoting water privatisation in developing countrles."
For further information see www.wdm.org.uk
page 13 of the scan
G8