Dar es Salaam water management, Tanzania

<div class="horipane"><div class="title active">Description</div><div class="content"><table class="table"><tbody><tr><td class="fld"></td><td class="columns"><div class="less">Tanzania government decided to overhaul the water and sewerage infrastructure of Dar es Salaam with funding from the World Bank, due to the bad condition of the water services at that time. To receive this funding, Tanzania was required to award this work to a private contractor. In 2003 the project was awarded to BGT. BGT is a joint venture created by Biwater International Limited and HP Gauff Ingenieure GmbH & Co. for the purposes of the Tanzanian project; Biwater owns 80% of BGT and Gauff owns 20%. </div><a class="seemore" href="#">See more...</a><div class="more" style="display:none"> In August 2005, Biwater Gauff (Tanzania) Ltd. (BGT), a private water company, filed a request for arbitration with the International Centre for Settlement of Investment Disputes (ICSID) regarding a contractual dispute with the United Republic of Tanzania. The dispute arises out of agreements entered into by BGT and Tanzania for the operation and management of the Dar es Salaam water system. In May of 2005, Tanzania terminated the contract with BGT for its alleged failure to meet certain performance guarantees set forth in the agreements. A new public operator took over: Dar es Salaam Water and Sewerage Corporation (DAWASCO). BGT brought the case before the ICSID stating that Tanzania’s termination had breached their agreements and resulted in an illegal expropriation of BGT’s investment. <br/><br/> Conflicts arose around the management model of water resources in the capital. As Martin Pigeon of TNI puts it: To be fair, the daunting challenges faced by DAWASCO since remunicipalisation are part of the problem: derelict infrastructure, unreliable customer data, degraded water resources, and strict but not necessarily relevant conditionalities imposed by international donors to access investment funds. Understanding these challenges requires a review of the general legacies of post-colonial Tanzania, as well as the impacts of the failed privatisation. It also requires an examination of the ideological assumptions that continue to inform policy and practice in Tanzania as a whole. (1)<br/><br/><a class="seeless" href="#">(See less)</a></div></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Basic Data</div><div class="content"><table class="table"><tbody><tr><td class="fld">Name</td><td>Dar es Salaam water management, Tanzania</td></tr><tr><td class="fld">Country</td><td><a href="/country/tanzania">Tanzania</a></td></tr><tr><td class="fld">Province</td><td>Dar es Salaam</td></tr><tr><td class="fld">Site</td><td>Dar es Salaam</td></tr><tr><td class="fld">Accuracy of Location</td><td>HIGH local level</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Source of Conflict</div><div class="content"><table class="table"><tbody><tr><td class="fld">Type of Conflict (1st level)</td><td>Water Management</td></tr><tr><td class="fld">Type of Conflict (2nd level)</td><td>Dams and water distribution conflicts</td></tr><tr><td class="fld">Specific Commodities</td><td><a href='/commodity/water'>Water</a><br /></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Project Details and Actors</div><div class="content"><table class="table"><tbody><tr><td class="fld">Level of Investment (in USD)</td><td>143000000</td></tr><tr><td class="fld">Type of Population</td><td>Urban</td></tr><tr><td class="fld">Potential Affected Population</td><td>100,000 - 3,000,000</td></tr><tr><td class="fld">Start Date</td><td>02/2003</td></tr><tr><td class="fld">Company Names or State Enterprises</td><td><a href='/company/biwater-gauff-ltd'>Biwater Gauff Ltd.</a> from <a href='/country-of-company/tanzania'><small>Tanzania</small></a> - <small> joint venture between Biwater International and HP Gauff Ingenieure GmbH & Co </small><br /><a href='/company/hp-gauff-ingenieure-gmbh-co'>HP Gauff Ingenieure GmbH & Co</a> from <a href='/country-of-company/germany'><small>Germany</small></a><br /><a href='/company/biwater-international-ltd'>Biwater International Ltd</a> from <a href='/country-of-company/united-kingdom'><small>United Kingdom</small></a><br /><a href='/company/dar-es-salaam-water-supply-and-sanitation-project'>Dar es Salaam Water Supply and Sanitation Project</a><br /><a href='/company/dar-es-salaam-water-and-sewerage-corporation'>Dar es Salaam Water and Sewerage Corporation <small>(DAWASCO)</small></a> from <a href='/country-of-company/tanzania'><small>Tanzania</small></a></td></tr><tr><td class="fld">Relevant government actors</td><td>Tanzania Government, Ministry of Water and Irrigation, National Urban Water Authority</td></tr><tr><td class="fld">International and Financial Institutions</td><td><a href='/institution/world-bank'>The World Bank <small>(WB)</small></a><br /><a href='/institution/united-nations-commission-on-international-trade-law'>United Nations Commission on International Trade Law <small>(UNCITRAL)</small></a><br /><a href='/institution/international-centre-for-settlement-of-investment-disputes'>International Centre for Settlement of Investment Disputes <small>(ICSID)</small></a> from <a href='/country-of-institution/united-states-of-america'><small>United States of America </small></a></td></tr><tr><td class="fld">Environmental justice organisations and other supporters</td><td>Lawyers’ Environmental Action Team, Legal and Human Rights Centre, Tanzania Gender Networking Programme, Center for International Environmental Law, International Institute for Sustainable Development</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">The Conflict and the Mobilization</div><div class="content"><table class="table"><tbody><tr><td class="fld">Intensity of Conflict (at highest level)</td><td>LATENT (no visible organising at the moment)</td></tr><tr><td class="fld">When did the mobilization begin</td><td>In REACTION to the implementation (during construction or operation)</td></tr><tr><td class="fld">Groups Mobilizing</td><td>International ejos<br /> Local government/political parties</td></tr><tr><td class="fld">Forms of Mobilization</td><td>Lawsuits, court cases, judicial activism</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Impacts</div><div class="content"><table class="table"><tbody><tr><td class="fld">Environmental Impacts</td><td><strong>Potential: </strong>Groundwater pollution or depletion</td></tr><tr><td class="fld">Socio-economic Impacts</td><td><strong>Visible: </strong>Violations of human rights</td></tr><tr><td class="fld">Other</td><td>No improvements for water users</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Outcome</div><div class="content"><table class="table"><tbody><tr><td class="fld">Project Status</td><td>Stopped</td></tr><tr><td class="fld">Pathways for conflict outcome / response</td><td>Environmental improvements, rehabilitation/restoration of area<br /> Court decision (victory for environmental justice)<br /> Negotiated alternative solution<br /> Technical solutions to improve resource supply/quality/distribution</td></tr><tr><td class="fld">Development of Alternatives</td><td>Public and participatory management of water services</td></tr><tr><td class="fld">Do you consider this as a success?</td><td>Yes</td></tr><tr><td class="fld">Why? Explain briefly.</td><td>Although the arbitral tribunal tribunal declared that the Tanzanian Government had violated the terms of its bilateral investment treaty with the UK, it declined to award BGT the monetary damages requested. <br/><br/>Regarding the todays public management of water under DAWASCO, inner workings and institutional and political environment only suggests that although formally owned by the government and formally a ‘public’ company, DAWASCO is far from being a public entity politically accountable to, <br/><br/>and directed by, users. Improvements are still to be made and the Tanzanian government is legally required to implement international donors’ policy recommendations and conditions. Favorable condition to achieve this goals are all there.</td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Sources and Materials</div><div class="content"><table class="table"><tbody><tr><td class="fld">References</td><td><table><tr><td><p> (also in attachement)<br/><a class="refanch small" href="http://www.tni.org/sites/www.tni.org/files/download/remunicipalisation_book_final_for_web_0.pdf" target="_blank">[click to view]</a></p></td></tr><tr><td><p> Putting Water Back into Public Hands<br/></p></td></tr><tr><td><p> (1) Remunicipalisation:<br/></p></td></tr><tr><td><p> Edited by Martin Pigeon, David A. McDonald, Olivier Hoedeman and Satoko Kishimoto<br/></p></td></tr></table></td></tr><tr><td class="fld">Links</td><td><table><tr><td><p> More information available here:<br/><a class="refanch small" href="http://www.business-humanrights.org/Categories/Lawlawsuits/Lawsuitsregulatoryaction/LawsuitsSelectedcases/Biwater-Tanzaniaarbitration" target="_blank">[click to view]</a></p></td></tr></table></td></tr><tr><td class="fld">Media Links</td><td><table><tr><td><p> Video: Remunicipalisation: Putting Water Back into Public Hands<br/><a class="refanch small" href="http://www.youtube.com/watch?v=BlSM1TPm_k8&list=PL897435D29B336E19" target="_blank">[click to view]</a></p></td></tr></table></td></tr></tbody></table></div></div><div class="horipane"><div class="title active">Meta Information</div><div class="content"><table class="table"><tbody><tr><td class="fld">Contributor</td><td>Elodie Aba</td></tr><tr><td class="fld">Last update</td><td>16/10/2014</td></tr></tbody></table></div></div>
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