Tanzania (Hansard, 10 July 2002)

§ Baroness Amos

My right honourable friend the Secretary of State for International Development visited Dodoma in 2–3 July for discussions with President Mkapa and Government Ministers about the UK's development partnership with Tanzania. She was warmly received and had some open and88WA constructive discussions with the Government of Tanzania about their impressive progress on social and economic reform, as well as about the Government's response to the International Civil Aviation Organisation's (ICAO) report on the air traffic control system. Given that the contract with BAE Systems is legally binding, President Mkapa is inviting ICAO and BAE Systems to visit Tanzania to help advise his Government on the best and most effective way of using the system. President Mkapa also made clear that there would be no second phase of the project. The President and Finance Minister outlined measures the Government have put in place to ensure proper scrutiny and transparency of contracts to avoid any similar problems in the future. Improved systems and legislation, which DfID has helped to support, are now in place for public expenditure management and procurement.

In view of these assurances and the measures taken by the Government of Tanzania, and given the impressive achievements Tanzania has made in economic growth and social reform, my right honourable friend agreed to establish a six-year partnership based on mutual commitments to drive forward Tanzania's poverty reduction and economic reform efforts. The memorandum of understanding will provide a commitment to at least £45 millon per annum of support to the Tanzanian budget, the first year of which will be disbursed between 1 July 2002 and 30 June 2003. In the current financial year we expect to spend a total of £80 million through our bilateral development programme.