February 5, 2007
On Feb 2, 2007, the arbitral tribunal in the Biwater v. Tanzania case pending at the International Center for Settlement of Investment Disputes (ICSID) granted CIEL and its partners the opportunity to file a written submission. The arbitral tribunal issued its decision two months after receiving the petition for amicus status in the pending Biwater v. Tanzania case. The petition filed by the Lawyers’ Environmental Action Team (LEAT), Legal and Human Rights Centre (LHRC), Tanzania Gender Networking Programme (TGNP), the Center for International Environmental Law (CIEL) and the International Institute for Sustainable Development (IISD) was opposed by the British water company Biwater, but was supported by the Tanzanian government.
While giving CIEL and partners the opportunity to provide input into the process as friends of court, the Tribunal rejected the request of the petitioners to access the documents produced in the arbitration, which would be necessary to prepare more useful and accurate input. Moreover, because Biwater PLC objected to the presence of the petitioners at the upcoming hearing in April, the Tribunal did not have the authority under the current ICSID rules to permit the petitioners to be present or to participate in the hearings. Despite this only partial victory, the Tribunal agreed with the petitioners about the importance of participation and transparency in disputes such as the one at issue here, strengthening the case for more open investment arbitration in the future.
This investment dispute before an ICSID Tribunal is at the heart of the controversy between the Tanzanian Government and a foreign investor concerning the provision of water services in Dar es Salaam from 2003 until 2005. The Tanzanian government announced in May 2005 that it had terminated its contract with City Water because the company had failed in its promise to provide clean drinking water to millions of people in Dar es Salaam. As in previous arbitration proceedings brought by companies supplying
public services, Biwater PLC, the UK-based partner in City Water, is apparently demanding substantial compensation for the alleged impact on its business. The company is using its rights as a foreign investor under the UK-Tanzania Bilateral Investment Treaty to initiate this multi-million US dollar arbitration against Tanzania.
Contacts:
Lawyers Environmental Action Team (LEAT)
Rugemeleza Nshala, rugemeleza.nshala@yale.edu;
and
Tundu Lissu, +255-22-2780859/2781098, tundulissu@leattz.org
Legal and Human Rights Centre (LHRC)
Helen Kijo-Bisimba, +255-22 2773038, 277 3048, lhrc@humanrights.or.tz
Tanzania Gender Networking Programme (TGNP)
Mary Janeth Rusimbi, +255-22-2443205, 2443450, 2443286, deus.kibamba@tgnp.org
Center For International Environmental Law (CIEL)
Marcos Orellana, +1-202-785-8700, morellana@ciel.org
International Institute for Sustainable (IISD)
Howard Mann, +1-613-729-0621, h.mann@sympatico.ca