Water Privatization and International Disputes

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this is Presented by Lawyers' Environmental Action Team (LEAT). 21/01/2007 KASARANI Is Donated by CIEL.

The case of Biwater vs Tanzania.

Co-organized with the Lawyers' Environmental Action Team (LEAT), this workshop discussed a number of issues raised in the Biwater-Tanzania dispute, which is currently pending at the International Centre for the Settlement of Investment Disputes (ICSID). At issue in that dispute was the cancellation of the ten-year contract awarded to the British water company Biwater to manage and operate the water and sewerage system in Dar es Salaam, Kibaha and Bagamoyo in Tanzania. The government of Tanzania cancelled the contract after two years, claiming that the foreign investor had failed to improve the supply for millions of people, that no new domestic pipework had been installed, and that the company had not spent the money it had promised, leading to a decline in water quality and a decrease in revenue collection.

The workshop aimed at clarifying the nexus between the right to water, foreign investment, privatization of essential services, and the involvement of international financial institutions; identifying ways to increase awareness about the implications of countries' obligations under bilateral investment treaties (BITs); and promoting increased transparency and participation in arbitration processes.

A brief synopsis of the speakers and discussion follows:

Clarence Kipobota of the Legal and Human Rights Centre in Tanzania informed the audience on the events leading to the dispute between Biwater and the government of Tanzania. Rugemeleza Nshala of LEAT focused on the problems relating to water privatization encountered in Dar es Salaam. Vicky Cann of the World Development Movement (WDM) discussed the role of international financial institutions (IFIs), such as the International Monetary Fund (IMF) and World Bank, and the international bidding process. Nathalie Bernasconi-Osterwalder of CIEL introduced the role of bilateral investment treaties (BITs), particularly focusing on the BIT between the United Kingdom and Tanzania. She also discussed the current Biwater case before the ICSID Tribunal and the amicus curiae brief that five civil society organizations submitted-CIEL, LEAT, LHRC, TGNP, and IISD. Sofia Plagakis of CIEL elaborated on the role of transparency in the Biwater case, focusing specifically on the confidentiality order that was issued by the ICSID Tribunal. Agnes Namuhisa of Tanzania Federation of Cooperatives moderated the session on campaign strategies in the Biwater case. Wenonah Hauter from Food and Water Watch (FWW) discussed the water privatisation attempts that occurred in Latin America, focusing on Cochambamba, Bolivia, as well as the anti-privatization protests that have taken place in Latin America, Africa, and Asia. She also discussed the importance of collaboration among international civil society organizations. Deus Kibamba of the Tanzania Gender Networking Programme (TGNP) focused on local strategies to halt the privatisation of essential services, contending that civil society must put pressure on the Tanzanian government not to give in to privatisation of public utilities. The workshop led to a lively exchange of information and experiences among Kenyan locals, and civil society organizations from Africa and elsewhere, as well as social movements campaigning on issues related to investment, water privatization and international financial institutions. Audience participants represented 29 countries from 5 continents. The discussion was very extensive and covered the different local and regional experiences based on the diversified background of the participants.

CIEL has prepared an overview of Tanzania's obligations under bilateral investment treaties to Tanzanian partners as a basis for future more targeted campaigning on foreign investment policy-making in Tanzania and in the region. Reported by Getrude Lema