UK water company Biwater failed in its bid to claim up to US$20 million in damages from the Tanzanian government following the collapse of the controversial water privatisation contract in 2005 (see TA previous issues). The case was heard at the International Centre for the Settlement of Investment Disputes (ICSID). In 2003, a subsidiary of Biwater, ‘City Water Services’, took on a water privatisation contract in Dar es Salaam. The Tanzanian government cancelled the contract after less than two years, citing City Water Services’ failure to meet the targets set in the contract. The Tribunal has found that while technical breaches of Biwater’s investor rights did occur, Biwater was not entitled to compensation because the breaches were worth zero in monetary value and that the termination of the contract was inevitable. The policy of water privatisation was imposed on Tanzania via a series of conditions set by the World Bank in return for aid, debt relief and cheap loans. The UK government supplied millions in aid to support the wider Tanzanian privatisation programme.

Two British tourists were robbed of £ 2,700 plus other belongings while staying at Breezes Hotel in the South Region of Zanzibar. It is believed that some hotel employees entered their room and broke open a safe deposit box while the guests were out having dinner – Tanzania Daima.

The French Ambassador to Tanzania has announced that the French government had committed $2 million to promote the French language in Tanzania in a three-year programme. He was addressing a meeting of French teachers who now number over 300 – Guardian.

Tanzania received an award for effective use of donor aid in the health sector. The award was made in Accra, Ghana during a review of progress in the implementation of the 2005 Paris Declaration on Aid Effectiveness. Participating countries were given the chance to showcase best practice examples in aid management and effectiveness.