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Artigo

31 Dez 2008

Author:
Andrea K. Bjorklund, Professor of Law at Univ. of California, Davis, in ASIL Insight (American Society of Intl. Law)

ICSID Tribunal Finds Tanzania To Have Violated Bilateral Investment Treaty But Declines To Award Any Damages

Privatization of public services, such as the provision of utilities and waste disposal facilities, has led to many investment disputes... Biwater Gauff (a joint venture of two European companies [via an operating company, City Water]...)...was awarded the bid [for the private operation & management of Dar es Salaam's water & sanitation system]... City Water...underestimated the difficulty of the project and failed to allocate sufficient managerial and financial resources to it. City Water requested an increase in the Operator Tariff, but Tanzania rejected the request... Relations between the government and Biwater Gauff continued to deteriorate...[and] mediation failed. Between May 13, 2005 and June 1, 2005,...[Tanzanian] government authorities took certain steps, including repudiating the lease contract and occupying City Water’s facilities... Biwater Gauff then brought a claim under the bilateral investment treaty (BIT) between the United Kingdom and the Republic of Tanzania...

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