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Back off Biwater! call by anti-poverty campaigners from UK and Tanzania
11 April 2007
On Wednesday 11 April 2007, anti-poverty campaigners from the World Development Movement (WDM) depicted Dorking-based water company Biwater as an aggressive bully beating up poverty-stricken Tanzania in a boxing match behind closed doors.
WDM highlighted the secretive legal action Biwater will be taking against the government of Tanzania on 16 April, when the case will be heard in The Hague. This legal action was launched following the collapse of the water privatisation contract in which Biwater’s subsidiary – City Water – was involved, in Dar es Salaam in 2005. Biwater is seeking millions of pounds from Tanzania following the cancellation of the contract. Despite the case being of public interest both here in the UK and especially in Tanzania, Biwater has opposed requests by the government of Tanzania that the case be heard in public. Biwater has also opposed the tribunal taking place on African soil and the release of important documents relating to the case.
Sarah Berger from Brighton World Development Movement, said: “Companies are often the first to complain about the lack of transparency and accountability in developing countries yet Biwater now wants the case to be heard in secrecy. What have they got to hide? It is a disgrace that Biwater has resorted to these tactics.”
Andrew Mushi, an anti-water privatisation campaigner from Tanzania, said:
“Tanzania is a very poor country. Whatever the result of the court case it will use up money and resources that would be better used putting things right in Tanzania’s water system. Water privatisation in my country was a condition of debt relief and it has failed to get water to those who desperately need it. It is unjust that a British company like Biwater is trying to claw back money after they failed in their job.”
Photographs
Judge, Biwater and Tanzania outside Biwater House (jpeg) Campaigners outside Biwater House (jpeg)
Biwater v Tanzania boxing match (jpeg)
Additional photographs available on request.
ENDS
Kate Blagojevic
Press officer, World Development Movement
0207 820 4900/4913, 07711 875 345, Email:
Stephanie Lam Brighton WDM press officer
Notes to editors
[1] The case is being brought by Biwater Gauff (Tanzania) Ltd at a tribunal held by the International Centre for the Settlement of Investment Disputes (ICSID), which is an arm of the World Bank. Oral legal proceedings will commence on 16 April 2007 in The Hague, the Netherlands. A ruling by the tribunal is not expected for some months following the April hearings.
[2] In August 2003, the government of Tanzania awarded the contract to run the water and sewerage network in Dar es Salaam (population 3.5 million) to City Water, a joint venture of Biwater Gauff (Tanzania) Ltd and a Tanzanian company, Superdoll Trailer Manufacturers Limited. City Water’s ten year contract to run Dar’s water system was terminated in May 2005 by the government of Tanzania on the grounds that City Water had made less than half the required investment and was not meeting the targets in the contract.
[3] The World Development Movement (WDM) believes that the water privatisation agenda in Tanzania was heavily influenced by external donors. Water privatisation was made a condition of Tanzania receiving debt relief under the Heavily Indebted Poor Countries initiative.
[4] Since Biwater first lodged this legal action at ICSID in 2005, thousands of WDM supporters have emailed the chief executive Larry Magor to ask him to re-consider. Last year, WDM along with Action Aid International Tanzania, the Tanzania Association of Non-Governmental Organisations, Food and Water Watch (USA), Corporate Europe Observatory (the Netherlands), plus John Vidal, environment editor - The Guardian, and Jeremy Dear, general secretary - National Union of Journalists, wrote to Larry Magor to ask him to re-consider Biwater’s opposition to the transparency measures being proposed within the legal case by the government of Tanzania. http://www.wdm.org.uk/news/biwater11122006.htm
[5] The World Development Movement was founded in 1970. It campaigns to tackle the root causes of poverty. WDM believes that charity is not enough and aims to change the policies that keep the developing world poor. It is a democratic and politically independent organisation with 16,500 supporters and a strong role for its 70 local groups across the UK.
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