A World Bank report into a controversial deal to sell a British made air traffic control to Tanzania will condemn the project as a waste of money.

Independent experts found that Tanzania could have purchased an off-the-peg system for 10 per cent of the price agreed with BAE systems.

Forum Response: BAE Systems

A spokesman for BAE Systems told ePolitix.com: "The Tanzanian government are getting good value for money. Their new system will last for years to come and will also allow them to generate money through charging for overflights.

"Their system will provide a safer environment for traffic in their air space and we regret that the World Bank did not consult with us in the preparation of their report as this would have prevented them submitting a report with factual errors."

Forum Response: Barclays

A spokeswoman for Barclays told ePolitix.com: "Barclays was mandated by BAE nearly five years ago, in August 1997, to arrange finance for a new Air Traffic Radar System for the government of Tanzania.

"BAE was awarded the contract by the Tanzanian government at that time following an international tender process. The agreement was signed in 1999 following preliminary approval of the transaction from the UK government and the financing has been in place since. The loan complied with both the borrowing limits of the Government of Tanzania and UK export licensing rules.

"Barclays support for such exports is dependent on the appropriate export licence being granted and we were guided by the UK government's decision on this transaction. The relevant export licence was issued in December last year."