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Tanzania: Overseas Aid

Volume 461: debated on Thursday 21 June 2007

To ask the Secretary of State for International Development what financial support has been given to the Presidential Parastatal Sector Reform Commission in Tanzania for (a) work in the area of water and sanitation and (b) other work in each year since 1994; on what dates technical assistance grants were given; what the aid funding was for each grant; and to whom consultancy contracts were awarded. (143944)

The Tanzanian Government established the Parastatal Sector Reform Commission (PSRC) in 1993 to reform and privatise loss-making public entities (including ports, railways and airlines). At the time, there were approximately 400 such entities, costing the Government US $100 million annually.

At the request of the Government of Tanzania, DFID provided a total of £7.1 million to the PSRC to support the divestiture of publicly-owned companies in Tanzania between 1992 and the end of our programme of support in March 2007.

DFID’s support helped to ensure that the privatisation process was implemented in a fair and transparent manner and that regulatory bodies were established to ensure privatised entities worked for the benefit of Tanzania. The assistance provided was used for the purposes of contracting advisory support for:

management of the privatisation process

broadening of share ownership—to afford Tanzanians greater opportunities to own shares in privatised entities

amendments to relevant enabling legislation and regulations, and supporting the development of suitable local regulatory capacity

Different companies were awarded contracts. All work was procured under prevailing Tanzanian Government procurement regulations. The grants provided were for:

Technical Assistance—total value of £6.1 million (from 1992-2007)

Development support—total value of £1 million (from 2003-07)

The contracts that were provided for work in the area of water and sanitation are set out in table 1 as follows.

Table 1: Contracts awarded for water and sanitation work

Date

Contractor

Purpose of work

Total value (£000)

2001

Adam Smith International

Conducting a water privatisation and regulatory study tour

55

2001

Clifford Chance

Provision of legal advice to DAWASA

1150

1997

John D. Davies

Provision of short-term advice on achieving an appropriate private sector participation arrangement for DAWASA

31

November 1997

GIBB East Africa Ltd

Facilitation of a DAWASA workshop on privatisation

16

Total

252

1 Part of the contract was denominated in US$.

The UK funded 10 contracts valued above £100,000 each in the period from 1992 to 2007 in support of PSRC. An additional 39 contracts of lesser value were awarded for smaller pieces of work—calculating the total value of these contracts would involve disproportionate cost. Table 2 sets out amounts and a description of the main grants and contractors.

Table 2: Contracts of £100,000 or more awarded in support of PSRC

Date

Contractor

Nature of assignment

Total value (£000)

1992-96

Devon Waide

Advisory support to PSRC

846

1998- 2000

Cezley Sampson

Provision of advice on reform, divestiture and restructuring

302

1998- 2002

PricewaterhouseCoopers (PWC)

Provision of Utilities adviser to PSRC

697

1999- 2000

Adam Smith International

Establishment of PSRC Information Unit and provision of public relations support

496

2001

GMA Capital Markets Ltd

Conducting a capital markets absorptive study

129

2001

Clifford Chance

Provision of legal consultancy for the privatisation of Air Tanzania Corporation

315

2002

Adam Smith International

Provision of lead advisory support

230

2002

Clifford Chance

Provision of legal advice for the privatisation of Air Tanzania Corporation

210

2002-05

PricewaterhouseCoopers (PWC)

Provision of Technical Adviser and Utilities Adviser

623

2006-07

PricewaterhouseCoopers (PWC)

Provision of Utilities adviser to PSRC

178

Total

4,026