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 $100 million annually.
At the request of the Government of Tanzania, DFID provided a total of £7.1 million to the PSRC to support the divestiture of publicly-owned companies in Tanzania between 1992 and the end of our programme of support in March 2007.
DFID’s support helped to ensure that the privatisation process was implemented in a fair and transparent manner and that regulatory bodies were established to ensure privatised entities worked for the benefit of Tanzania. The assistance provided was used for the purposes of contracting advisory support for:
management of the privatisation process
broadening of share ownership—to afford Tanzanians greater opportunities to own shares in privatised entities
amendments to relevant enabling legislation and regulations, and supporting the development of suitable local regulatory capacity
Different companies were awarded contracts. All work was procured under prevailing Tanzanian Government procurement regulations. The grants provided were for:
Technical Assistance—total value of £6.1 million (from 1992-2007)
Development support—total value of £1 million (from 2003-07)
The contracts that were provided for work in the area of water and sanitation are set out in table 1 as follows.
Date Contractor Purpose of work Total value (£000) 2001 Adam Smith International Conducting a water privatisation and regulatory study tour 55 2001 Clifford Chance Provision of legal advice to DAWASA 1150 1997 John D. Davies Provision of short-term advice on achieving an appropriate private sector participation arrangement for DAWASA 31 November 1997 GIBB East Africa Ltd Facilitation of a DAWASA workshop on privatisation 16 Total — — 252 1 Part of the contract was denominated in US$.
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.
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