ABSTRACT
The spring of 2002 brought new hope for improved water services to the inhabitants of Tanzania's largest city, Dar es Salaam. City Water Services Ltd (CWS) has abandoned a case at the International Arbitration Tribunal, where it has been contesting Government of Tanzania's decision to terminate its contract and enlisting the services of Dar es Salaam Water and Sewerage Company. In particular, CWS had begun to consistently fail to remit the Lessor tariff to Dar es Salaam Water and Sewerage Authority and to deposit the First Time New Domestic Water Supply Connection Fee into the First Time New Domestic Water Supply Connection Fund on a timely basis. During Tanzania's period of socialism, the government had promised and delivered free water to some of its citizens. Despite a number of apparent advantages of private sector participation, there was also evidence to oppose this form of utility operation in Dar es Salaam and other cities in the developing world.
