AMICUS CURIAE SUBMISSION OF: The Lawyers' Environmental Action Team (LEAT), The Legal and Human Rights Centre (LHRC), The Tanzania Gender Networking Programme (TGNP), The Center for International Environmental Law (CIEL), The International Institute for Sustainable Development (IISD)

The submission by several legal and environmental organizations argues that Biwater Gauff (Tanzania) Limited failed in its duties as an investor during the privatization of water services in Dar es Salaam. The Amici contend that the investor's failure to conduct proper due diligence and its poor operational performance led to the investment's failure, rather than government action. They further suggest the investor may have used a 'renegotiation strategy'—bidding low to win the contract with the intent to force more favorable terms later. The document asserts that because water is a basic human right and essential for sustainable development, investors in this sector must be held to the highest standards of responsibility, and that the Tanzanian government was justified in terminating the contract to protect these rights.

• The Amici argue that international investment agreements are not intended to protect investors from their own poor business decisions or risks, citing that "Bilateral Investment Treaties are not insurance policies against bad business judgments."
• The submission identifies three specific investor responsibilities under international investment law: the duty to apply proper business standards and due diligence, the duty to observe the principle of pacta sunt servanda, and the duty to act in good faith.
• The Amici claim that Biwater Gauff failed to perform adequate due diligence, resulting in an underestimation of costs, such as incorrectly stating the unit cost of electricity as "26 Tshs m3" when its own projections indicated "71 Tshs m3".
• The investor's operational performance in Dar es Salaam was poor, with a 47 percent shortfall in new meter installations (8,751 installed against a target of 16,500) and a 60 percent shortfall in new water connections (400 added against a target of 1,000).
• The Amici suggest the investor may have employed a 'renegotiation strategy', defined as 'strategic, opportunistic, or aggressive bidding' where a firm bids below financial equilibrium to win a concession with the expectation of later forcing a renegotiation for higher tariffs or lower investments.
• Evidence cited to support the existence of a renegotiation strategy includes the investor submitting the lowest possible tariff bid, failing to deposit the "social connection tariff" into the "First Time New Domestic Water Supply Connection Fund", and seeking a tariff review only 16 months after the contract began.
• The submission argues that the human right to water and sustainable development goals increase the responsibilities of investors in the water sector, as the provision of such services is "not, and cannot be understood as, just another business venture."
• The Amici contend that the Government of Tanzania was justified in terminating the contract on 13 May 2005 to prevent the further deterioration of water services and to fulfill its international obligations under human rights treaties, including the Convention on the Rights of the Child and the Convention on the Elimination of All Forms of Discrimination Against Women.

APA

Center for International Environmental Law (2007). AMICUS CURIAE SUBMISSION OF: The Lawyers' Environmental Action Team (LEAT), The Legal and Human Rights Centre (LHRC), The Tanzania Gender Networking Programme (TGNP), The Center for International Environmental Law (CIEL), The International Institute for Sustainable Development (IISD). https://www.ciel.org/wp-content/uploads/2015/03/Biwater_Amicus_26March.pdf

Chicago

Center for International Environmental Law. AMICUS CURIAE SUBMISSION OF: The Lawyers' Environmental Action Team (LEAT), The Legal and Human Rights Centre (LHRC), The Tanzania Gender Networking Programme (TGNP), The Center for International Environmental Law (CIEL), The International Institute for Sustainable Development (IISD). 2007. https://www.ciel.org/wp-content/uploads/2015/03/Biwater_Amicus_26March.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=AMICUS CURIAE SUBMISSION OF: The Lawyers' Environmental Action Team (LEAT), The Legal and Human Rights Centre (LHRC), The Tanzania Gender Networking Programme (TGNP), The Center for International Environmental Law (CIEL), The International Institute for Sustainable Development (IISD) |date=26 March 2007 |url=https://www.ciel.org/wp-content/uploads/2015/03/Biwater_Amicus_26March.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2007amicus, author = {{Center for International Environmental Law}}, title = {{AMICUS CURIAE SUBMISSION OF: The Lawyers' Environmental Action Team (LEAT), The Legal and Human Rights Centre (LHRC), The Tanzania Gender Networking Programme (TGNP), The Center for International Environmental Law (CIEL), The International Institute for Sustainable Development (IISD)}}, institution = {Center for International Environmental Law}, year = {2007}, month = mar, url = {https://www.ciel.org/wp-content/uploads/2015/03/Biwater_Amicus_26March.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }