Overview of the Project:
In the later part of the twentieth century and the earlier part of the twenty first century the Government of Tanzania got into negotiations with a number of international funding agencies and European water companies to lease the Dar Es Salaam Water and Sewerage Authority infrastructure to a Joint Venture Company known as the “CITY WATER SERVICES.”
CITY WATER SERVICES was a joint venture between Dar Es Salaam Water and Sewerage Authority and a consortium of British and German companies. The total cost of the joint venture was USD 164,600,000.00 $ (One Hundred Sixty Four Million and Six Hundred Thousand United Stated Dollars). The Tanzanian Government being the main beneficiary or the project borrowed USD 61,500,000.00 $ (Sixty One Million and Five Hundred Thousand) for her parastatal “Dar Es Salaam Water and Sewerage Authority” from the World Bank.
Aim of the Project:
The main aim of the joint venture was to help improve the public health and well-being in a city prone to water-borne disease outbreaks and ultimately support the health system of the Tanzania 's main economic focal point.
Failures of the Project:
Privatization of water-supply systems has always been controversial in world. Water being an essential resource for human survival and well-being should not have been commercialized. In respect to the above mentioned project, the conflicting aims of foreign companies, which want to maximize profit, and government, which was seeking to improve access to clean water for the financially dis...
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...do not participate in designing the loan packages. International financial institutions work with a select group of central bankers and finance ministers to make polices without input from other government agencies.
To increase exports, countries are encouraged to give tax breaks and subsidies to export industries. Public assets and government utilities are sold off to foreign investors. Therefore increasing capitalistic tendencies in institutions that should socialist.
After accessing the above advantages and disadvantages, am of the view that International financial institutions are necessary in the current international financial terrain. Though these institutions do have some disadvantages, their advantages out weight the disadvantages, It should also be noted that the disadvantages can be mitigated with policies that are developmental friendly.
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