On May 24, Tanzania’s government confirmed that it had cancelled its 2003 deal with Biwater to bring clean water to the capital, Dar es Salaam, and the surrounding region within five years. The US$140 million scheme, pushed on Tanzania by the World Bank and Britain’s government, was regarded as a model for Third World private development by many neoliberals. The British government had paid £500 of its aid budget to Adam Smith International to advise the Tanzanian government, half of which was spent on a video containing the words, “Our old industries are dry like crops and privatisation brings the rain.” The project was well behind schedule, water quality has declined and no pipes had been installed. While admitting these problems, Biwater has announced it will sue for breach of contract, claiming it had a plan to get more money and proceed.

From Green Left Weekly, June 1, 2005.
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