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11 Jan 2008

Ashley Seager, Guardian [UK]

Tanzania wins £3m damages from Biwater subsidiary

Tanzania has won more than £3m from a subsidiary of British company Biwater in a long-running dispute over a controversial contract to run the water system of Dar es Salaam. The Tanzanian government privatised its water system and handed control to Biwater subsidiary City Water Services in 2003. But then problems with the water supply led the government to seize control back from CWS in 2005…. Now a London tribunal has thrown out a case brought by CWS under the rules of the United Nations Commission on International Trade Law…[finding] that water and sewerage services had deteriorated under CWS's management….