Saturday, December 20, 2014

Egypt denies Ethiopia row over dam study deadline | Africa | Worldbulletin News


Egypt denies Ethiopia row over dam study deadline

Egypt denied reports that Ethiopia had asked to extend the deadline for a technical study on the anticipated impact of a controversial mega-dam

World Bulletin / News Desk
Egyptian Irrigation Minister Hossam Moghazi on Friday denied reports that Ethiopia had asked to extend the deadline for a technical study on the anticipated impact of a controversial mega-dam that it is building on the Nile River's upper reaches.
"The agreement between Cairo, Addis Ababa and Khartoum to allow a six-month period for carrying out the evaluation has not changed," Moghazi told The Anadolu Agency.
In recent days, certain Egyptian media outlets had reported that Ethiopia had asked to extend the sixth-month deadline to two years.
Moghazi, however, said some research firms that had been shortlisted by a tripartite technical committee to conduct two impact studies on Ethiopia's dam project had asked to postpone submission of their proposals.
He added that the committee had given the firms a December 30 deadline by which to submit proposals.
Since September, a Tripartite National Committee – a 12-member experts' panel responsible for aiding implementation of recommendations issued by an International Panel of Experts – has held two working sessions in Addis Ababa and Cairo.
At the two meetings, representatives of the three countries were able to produce a list of seven firms, one of which will be selected to conduct the studies.
Ethiopia says the multibillion-dollar Grand Ethiopian Renaissance Dam is needed to generate badly-need energy. The project has strained Ethiopia's relations with downstream Egypt, which fears the project will reduce its historical share of water.
Addis Ababa, for its part, insists the new dam will benefit Egypt and Sudan, both of which will be invited to purchase the electricity thus generated.
Egypt and Ethiopia agreed to resume tripartite talks – along with Sudan – after Ethiopian Prime Minister Hailemariam Desalegn and Egyptian President Abdel-Fattah al-Sisi met on the sidelines of a June summit in Equatorial Guinea.

Sunday, December 14, 2014

Ethiopia-Egypt talks on Nile dam stumble | Economy | Worldbulletin News

Ethiopian says the dam project is meant to generate badly-need energy. But the project has strained Ethiopia's relations with downstream Egypt, which fears the project will reduce its water share

World Bulletin/News Desk
Consultations among experts of Ethiopia, Sudan and Egypt aimed at determining the impact of Ethiopia's $4.8 billion dam project on the Nile's upper reaches halted amid differences between Egypt and Ethiopia, an official said Sunday.
The Tripartite National Committee (TNC) – a 12-member experts’ panel responsible of facilitating implementation of recommendations of the International Panel of Experts concerning Ethiopia’s hydroelectric dam project – had so far held two working sessions in Addis Ababa and Cairo.
"The third session was supposed to be held in Khartoum on December 4-6, but could not be held due to disagreements," Bizuneh Tolcha, a senior official with the Ethiopian Ministry of Water, Energy and Irrigation, told The Anadolu Agency.
The experts' panel recommended that two studies get conducted – one on the hydrological simulation model and another on a trans-boundary environmental, economic and social impact assessment, which led to the creation of the TNC by the three countries to get those studies done.
During the last two meetings, the three countries, according to Tolcha, were able to produce a list of seven firms, out of which only one would be selected to conduct the studies.
"Each country was supposed to come up with its proposals that comprise technical evaluation of the firms, but during a preparatory conference in Cairo on November 4, a disagreement occurred as to the points to be included in the studies," Tolcha said, declining to give further details.
"The matter has since been referred to the relevant ministers of the three countries so that they resolve the matter," he said. "Though minor, that disagreement has come as a stumbling block against the progress of the tripartite talks."
Ethiopian says the dam project is meant to generate badly-need energy. But the project has strained Ethiopia's relations with downstream Egypt, which fears the project will reduce its water share.
Addis Ababa, for its part, insists the new dam will benefit downstream states Egypt and Sudan, both of which will be invited to purchase the electricity generated by the dam.
The two countries agreed to resume tripartite talks – which also included downstream country Sudan – after Ethiopian Prime Minister Hailemariam Desalegn and Egypt's President Abdel-Fattah al-Sisi met in Equatorial Guinea in June.
According to the original schedule, the TNC should meet in Addis Ababa on December 16 to select the firm to conduct the two studies.

Thursday, December 4, 2014

Offers to study Ethiopia's dam expected mid-December - Politics - Egypt - Ahram Online



EthiopiaOffers to study Ethiopia's dam expected mid-December - Politics - Egypt - Ahram Online: "Offers to study Ethiopia's dam expected mid-December
Egypt, Sudan and Ethiopia were expected to consider international firm offers to conduct studies on the Grand Renaissance Dam Thursday, but several firms requested an extension
Ahram Online , Wednesday 3 Dec 2014
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Ethiopia's Great Renaissance Dam is constructed in Guba Woreda, some 40 km (25 miles) from Ethiopia's border with Sudan, June 28, 2013. (Photo: Reuters)
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The period for receiving offers from international firms to conduct studies on the impact of Ethiopia's Grand Renaissance Dam has been extended to mid-December.

Advisor to Egypt's irrigation minister, Alaa Yassin, told Al-Ahram Arabic news website Wednesday that some firms — originally expected to make their offers late November — requested an extension.
Egypt, Sudan and Ethiopia had selected seven international firms in October to prepare technical and financial offers in order to choose one to conduct studies on Ethiopia's dam.

The firms were from Germany, Switzerland, France, Holland and Australia.

A tripartite committee was expected to hold a meeting Thursday in Khartoum to study the offers and then choose a firm in Addis Ababa on 16 December.

The firm's report — based on study to be conducted over five months — will include the dam's impact on upstream Nile countries Egypt and Sudan, as well as its environmental, social and economic effects.

Cairo is concerned that Ethiopia's $4.2 billion dam project, which the Ethiopian government says is now 40 percent complete, could have an adverse effect on its water supply.

Relations between the two countries have been tense as a result. However, recent diplomatic efforts appear to have improved bilateral communication.

Several visits and meetings have taken place across the three countries in the past few months.

Egypt said that there are several technical issues that could be discussed with Ethiopia should the technical report conclude that the dam might negatively affect Egypt.

Egypt will likely need an additional 21 billion cubic metres of water per year by 2050, on top of its current 55 billion cubic metre quota, to meet the water needs of a projected population of 150 million, according to Egypt's National Planning Institute."




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Thursday, November 27, 2014

Egypt: Bid deadline for controversial dam study extended - business - News - StarAfrica.com


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The deadline to submit technical and financial bids to conduct a study on Ethiopia’s controversial Nile River dam has been extended to mid-December, Egypt’s Irrigation Minister Hossam Moghazy disclosed Wednesday.Six international consultancy firms are expected to file bids for the study a statement from the Egyptian government quoted Moghazy as saying.
Three experts from the Nile countries of Egypt, Sudan and Ethiopia are tasked with reviewing the offers within 15 days before selecting the winner.
Later, a meeting by the three Nilotic countries slated for Khartoum in mid-January will settle for the best offers.
In August the three countries agreed in principle on mechanisms for deciding on the possible negative effects of Ethiopia’s controversial Grand Renaissance Dam which Egypt fears would affect its natural share of water from the River Nile.
Ethiopia had repeatedly argued that the dam project which it announced almost four years ago, would bring no harm to Egypt’s water security, a claim Cairo has dismissed as untenable.
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Wednesday, November 5, 2014

Ethiopia-Egypt trade deals to ease River Nile row -BBC News

Diversion ceremony at the Blue Nile in Guba, Ethiopia. 28 May 2013Ethiopian government says the multi-billion dollar water project poses no threat to Egypt's share of the Nile


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Egypt and Ethiopia have signed a series of trade agreements which could help smooth diplomatic tensions over use of the River Nile waters.
The countries fell out over Ethiopia's plans to construct a $4.3bn (£3.4bn) hydroelectric dam on the river.
Egypt was apparently caught by surprise when Ethiopia started diverting the Blue Nile to build the Grand Renaissance Dam in 2013.
The river is a tributary of the Nile, on which Egypt is heavily dependent.
map
Ministers from both countries signed more than 20 bilateral on deals on trade, health and education at a meeting in Ethiopia's capital, Addis Ababa.
At the signing ceremony, senior government officials vowed to continue talks on how to resolve a three-year dispute over the dam, which remains a sensitive issue, says the BBC Emmanuel Igunza in Addis Ababa.
Egypt's Foreign Minister Sameh Shoukry said discussions would aim to achieve a win-win situation for all countries.
Despite reassurances from the Ethiopian government that their water project poses no threat to Egypt's share of the Nile, Egyptians are asking what effect it will have on their already depleting water resources, our correspondent says.
At the height of the tensions last year, Egyptian authorities were said to be considering military action over the dam.
They have however agreed to commission a team of international experts to assess the impact of the project on the water levels of Africa's longest river.

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Saturday, November 1, 2014

State Information Services 5th round of Egyptian-Ethiopian committee starts in Addis Ababa

The Ethiopian Capital Addis Ababa hosted on Saturday 01/11/2014 the 5th round of Egyptian-Ethiopian Joint Committee for two days at the level of senior officials.
The 5th round's meetings will be attended by representatives of the ministries of foreign affairs, trade and industry, electricity and renewable energy, oil, education, higher education, civil aviation, tourism, agriculture and land reclamation, communications and information technology, and culture, as well as the National Council for Women. Today's meeting comes in preparation for the ministerial meeting to be held on November 3, which will be co-chaired by the foreign ministers of two countries.
During the meetings, head of the Ethiopian delegation expressed condolences to the Egyptian government and people for the Armed Forces martyrs in the North Sinai terror attack. He stressed the importance of exploiting the political will of leaderships in the two countries and enhancing the historic relations between Egypt and Ethiopia.
For his part, Egyptian Assistant Foreign Minister for African Affairs Ambassador Magdy Saber stressed the importance of building on the positive spirit created between Egypt and Ethiopia after the meeting held between President Abdel Fattah El Sisi and the Ethiopian prime minister on the sidelines of the African summit. He stressed the importance of working to enhance relations between Egypt and Ethiopia in all fields, thus contributing to the realization of development goals of the two countries.

Friday, October 31, 2014

Egypt's El-Sisi talks parliamentary polls, Syria and Ethiopia's dam - Politics - Egypt - Ahram Online

Egypt's El-Sisi talks parliamentary polls, Syria and Ethiopia's dam - Politics - Egypt - Ahram Online: "Egypt's El-Sisi talks parliamentary polls, Syria and Ethiopia's dam
Part three of interview with Saudi newspaper Okaz deals with upcoming polls, Syria's peace prospects and Ethiopia's Grand Renaissance Dam
Ahram Online, Wednesday 29 Oct 2014
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Egyptian President Abdel-Fattah El-Sisi (Photo: Reuters)
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Egyptian President Abdel-Fattah El-Sisi spoke with Saudi newspaper Okaz, discussing Egypt's upcoming parliamentary elections, Ethiopia's Grand Renaissance Dam and Syria's Bashar Al-Assad.
In the first two sections of the interview, El-Sisi told Okaz that "international forces" thought they could establish a new regional system to give them more influence – but failed. He also praised Saudi Arabia and King Abdullah.

The third part of the extended interview was published on Wednesday.

Parliamentary elections

Okaz asked El-Sisi why he wasn't worried about the upcoming polls bringing about "choices that can affect the future and heighten confrontations between the state and parliamentary authorities".

El-Sisi answered that he trusts the Egyptian people and their ability to choose people who represent them and have the country's interest at heart.

Egypt is currently without a parliament; authorities say the elections will take place before the end of this year.

The president added that there's a segment of society that doesn't care for Egypt's interests – but that this segment was rejected by the Egyptian people in the 25 January 2011 and 30 June 2013 uprisings.

Okaz also asked El-Sisi whether the country is pushing forward in ensuring that the next parliament has "justice, optimism and builds Egypt on strong and solid bases" – terms that the president used to describe the two uprisings.

El-Sisi replied that "the issue is left to the choices of the people ... we as a state do not interfere in these details, after the constitution has put everything on its right path."

Syria

On Syria, El-Sisi said Egypt supports the continuity of a strong Syrian state. Egypt will also stand with the Syrian people for a better future and the prevalence of their will, he added.

On the future of Bashar Al-Assad as Syria's president, El-Sisi said the matter is left to the Syrian people, and if people want change, it is better that it be fulfilled through a balanced political solution.

Such a solution, he said, involves reaching a deal between the Syrian regime and opposition that will achieve change through the will of the majority of the people and needs for stability.

Ethiopia's dam

On Ethiopia's ongoing dam project, El-Sisi said that Egypt "never seeks to harm the interests of a state, and we do not accept to be harmed or our vital resources affected."

Ethiopia has the right to achieve the development of its people, and Egypt has the right, as an estuary state, to get its share of the water without a decrease, El-Sisi said.

Cairo is concerned that the $4.2 billion dam project, which the Ethiopian government says is now 40 percent complete, could have an adverse effect on its water supply.

He said Egypt maintains the right for its water supply, especially as it suffers from water scarcity and a deficit in water resources.

According to El-Sisi, the issue should be resolved through understanding and finding solutions based on mutual trust.

This is what Egypt is currently doing along with Ethiopia and Sudan, El-Sisi added, avoiding past mistakes that led to erosion of trust between all sides.

"I trust there's a solution that can be implemented, and our experts are searching for it," he concluded."



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Sunday, October 26, 2014

Egyptian investments in Ethiopia at $2b - Official - business - News - StarAfrica.com


APA

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Ayman Issa, the head of the Egypt/Ethiopia Business Council has claimed that Egyptian investments in the East African country have increased from $600 million to $2 billion.The number of Egyptian companies in Ethiopia has increased from 34 to nearly 137 company, the number of companies in Egypt increased 7 companies. Issa said on Friday.
He described the Ethiopian market as promising, with a potential to attract significant investment over the past decade.
Issa’s statement comes ahead of the inauguration by ministers of Commerce and Industry of the two countries of the Egypt-Ethiopia Business Forum in Addis Ababa on November 2.
It will take place on the sidelines of the Joint Ministerial Commission between the two countries, which will be held from 1 to 3 November, he added.
The commission will meet under the chairmanship of Egyptian Foreign Minister Sameh Shoukry and his Ethiopia counterpart Dr. Tedros Adhanom.
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Saturday, October 25, 2014

Egypt-Ethiopia meeting delayed to November for further preparations - Politics - Egypt - Ahram Online

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The talks in Addis Ababa, now planned for 1-3 November, come after a recent tripartite meeting over Ethiopia's Grand Renaissance Dam
Ahram Online, Wednesday 22 Oct 2014
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Egypt President Abdel Fattah al-Sisi talks to Ethiopian Prime Minister

Egypt President Abdel Fattah al-Sisi talks to Ethiopian Prime Minister Hailemariam Desalegn as they arrive to attend the 23rd African Union Summit (AUS) in Malabo June 26, 2014. (Photo: Reuters)
A ministerial Egyptian-Ethiopian commission delayed its first meeting, initially planned for Wednesday, to November to make room for more preparations, in yet another series of talks over the disputed Grand Renaissance Dam.

Bilateral relations between Egypt and Ethiopia have improved after months of strained ties over the dam Ethiopia is building, which Egypt says will affect its share of the Nile's water.
In the latest meeting in Cairo last week, Egypt, Ethiopia and Sudan agreed to receive offers from consultancy firms in order to choose one to conduct more studies on the dam's possible effects.
Egypt's state news agency MENA said that Egyptian Foreign Minister Sameh Shukry and his Ethiopian counterpart on Wednesday discussed the logistical preparations for the commission to ensure the best outcome for both countries.
The commission meetings will take place from 1-3 November, MENA said, after initially being planned for 22 October. Both sides decided to postpone it to give time for more preparations.
The commission will include the two countries' ministers of foreign affairs, irrigation and agriculture, investment, trade, transport and electricity.
Other meetings between Egyptian and Ethiopian businessmen are expected to take place.
Egypt's President Abdel-Fattah El-Sisi met with Ethiopia's prime minister at the African Summit and then later in the United States at the United Nations General Assembly. El-Sisi said he intends to visit Ethiopia for more talks, but hasn't set a date for the visit yet

Tuesday, October 21, 2014

Egypt, Sudan to raise representation in joint body

Egyptian President Abdel-Fattah al-Sisi and Sudanese President Omar al-Bashir on Saturday had agreed to raise to the level of head of state representation in a joint Egyptian-Sudanese committee, a Sudanese diplomat said.
Sudan's ambassador in Cairo Abdel-Mahmoud Abdel-Halim said al-Sisi held a closed-door meeting – that was attended by some ministers from Egypt and Sudan – with al-Bashir who started an official visit to Cairo earlier in the day, his first since al-Sisi took over in June.
The ambassador added that during the one-hour meeting, the two presidents agreed to raise to the level of head of state representation in the Higher Egyptian-Sudanese Joint Committee, a body tasked with the job of cementing cooperation between the two Nile Basin Arab states.
Egypt used to be represented in the committee in the past by its prime minister, while Sudan used to be represented by its vice-president.
Abdel-Halim said Egypt's Foreign Minister Sameh Shoukri would pay a visit to the Sudanese capital Khartoum within days to prepare with his Sudanese counterpart, Ali al-Karti, for the next meetings of the committee, slated for later this year.
Al-Sisi and al-Bashir discussed the outcome of negotiations between Egypt, Sudan and Ethiopia on a multibillion dollar dam being built by the later country over the Nile, the Sudanese ambassador said.
He said the two presidents expressed their satisfaction with the outcome of these negotiations, describing them as "positive."
Abdel-Halim said al-Sisi and al-Bashir also discussed developments in neighboring Libya, expressing hopes that Libya's neighboring countries would play a role in bringing stability back to the restive country.
They also called for launching dialogue among different political forces in Libya, Abdel-Halim said of the Egyptian and Sudanese presidents.
Al-Bashir arrived in Cairo earlier on Saturday in the company of five of his government ministers.
He is expected to spend two days in the Egyptian capital.

Monday, October 20, 2014

Ethiopia to build two more dams for power generation


Ethiopia to build two more dams for power generation

Local media reported that BNP Paribas, Deutsche Bank and JP Morgan have been selected to manage the bond sales.

World Bulletin/News Desk
Ethiopia is planning to build two more hydro-electric dams over the southern Omo River on border with Kenya for generating electricity, an Ethiopian spokesman said Saturday.
"Gilgel Gibe IV and V hydro-electric dams will be part of Ethiopia's next big projects during the next five-year national plan," Bizuneh Tolcha, spokesman for the Water Ministry, told Anadolu Agency.
He said the two dams will have the capacity to generate 2,050 megawatts of electricity.
"Some 1450 megawatts of the total electric power will be produced by Gilgel Gibe IV while Gilgel Gibe V will generate the remaining," he said.
Tolcha said that the cost of the two dams will be announced "when the assessment is completed".
Ethiopia has begun to sell bonds in the capital market as to generate funds for its mega-projects.
Local media reported Friday that BNP Paribas, Deutsche Bank and JP Morgan have been selected to manage the bond sales.
Ethiopia built the Gilgel Gibe I on the Omo River in 2004. The dam has an electric output of 184 megawatts.
Gilgel Gibe II was inaugurated in 2010 and 80 percent of the construction has been finalized.
Kenyan activists have been lobbying against the construction of Gilgel Gibe dams on the ground that it will significantly impact the lives of communities around Lake Turkana – a claim denied by Ethiopian government.
Ethiopia has the potential to produce more than 45,000 megawatts of electricity from hydro-power.
“There are other hydro-electric projects being considered," Tolcha said.
Ethiopia is planning to build a number of dams for electricity generation, including a controversial hydroelectric dam on the Nile's upper reaches, which has strained relations with Egypt.
Ethiopia says it needs the dam to generate badly-needed energy. Egypt, for its part, fears the dam will reduce its traditional share of the Nile River – its main source of water.
Addis Ababa insists the new dam will benefit downstream states Egypt and Sudan, both of which will be invited to purchase the electricity thus generated.
Ethiopian authorities also commenced the construction of the Geba dam in September of this year in western Ethiopia at a cost of $583 million.

Ethiopia to build two more dams for power generation | Africa | Worldbulletin News


Ethiopia to build two more dams for power generation

Local media reported that BNP Paribas, Deutsche Bank and JP Morgan have been selected to manage the bond sales.

World Bulletin/News Desk
Ethiopia is planning to build two more hydro-electric dams over the southern Omo River on border with Kenya for generating electricity, an Ethiopian spokesman said Saturday.
"Gilgel Gibe IV and V hydro-electric dams will be part of Ethiopia's next big projects during the next five-year national plan," Bizuneh Tolcha, spokesman for the Water Ministry, told Anadolu Agency.
He said the two dams will have the capacity to generate 2,050 megawatts of electricity.
"Some 1450 megawatts of the total electric power will be produced by Gilgel Gibe IV while Gilgel Gibe V will generate the remaining," he said.
Tolcha said that the cost of the two dams will be announced "when the assessment is completed".
Ethiopia has begun to sell bonds in the capital market as to generate funds for its mega-projects.
Local media reported Friday that BNP Paribas, Deutsche Bank and JP Morgan have been selected to manage the bond sales.
Ethiopia built the Gilgel Gibe I on the Omo River in 2004. The dam has an electric output of 184 megawatts.
Gilgel Gibe II was inaugurated in 2010 and 80 percent of the construction has been finalized.
Kenyan activists have been lobbying against the construction of Gilgel Gibe dams on the ground that it will significantly impact the lives of communities around Lake Turkana – a claim denied by Ethiopian government.
Ethiopia has the potential to produce more than 45,000 megawatts of electricity from hydro-power.
“There are other hydro-electric projects being considered," Tolcha said.
Ethiopia is planning to build a number of dams for electricity generation, including a controversial hydroelectric dam on the Nile's upper reaches, which has strained relations with Egypt.
Ethiopia says it needs the dam to generate badly-needed energy. Egypt, for its part, fears the dam will reduce its traditional share of the Nile River – its main source of water.
Addis Ababa insists the new dam will benefit downstream states Egypt and Sudan, both of which will be invited to purchase the electricity thus generated.
Ethiopian authorities also commenced the construction of the Geba dam in September of this year in western Ethiopia at a cost of $583 million.

Ethiopia to build two more dams for power generation | Africa | Worldbulletin News


Ethiopia to build two more dams for power generation

Local media reported that BNP Paribas, Deutsche Bank and JP Morgan have been selected to manage the bond sales.

World Bulletin/News Desk
Ethiopia is planning to build two more hydro-electric dams over the southern Omo River on border with Kenya for generating electricity, an Ethiopian spokesman said Saturday.
"Gilgel Gibe IV and V hydro-electric dams will be part of Ethiopia's next big projects during the next five-year national plan," Bizuneh Tolcha, spokesman for the Water Ministry, told Anadolu Agency.
He said the two dams will have the capacity to generate 2,050 megawatts of electricity.
"Some 1450 megawatts of the total electric power will be produced by Gilgel Gibe IV while Gilgel Gibe V will generate the remaining," he said.
Tolcha said that the cost of the two dams will be announced "when the assessment is completed".
Ethiopia has begun to sell bonds in the capital market as to generate funds for its mega-projects.
Local media reported Friday that BNP Paribas, Deutsche Bank and JP Morgan have been selected to manage the bond sales.
Ethiopia built the Gilgel Gibe I on the Omo River in 2004. The dam has an electric output of 184 megawatts.
Gilgel Gibe II was inaugurated in 2010 and 80 percent of the construction has been finalized.
Kenyan activists have been lobbying against the construction of Gilgel Gibe dams on the ground that it will significantly impact the lives of communities around Lake Turkana – a claim denied by Ethiopian government.
Ethiopia has the potential to produce more than 45,000 megawatts of electricity from hydro-power.
“There are other hydro-electric projects being considered," Tolcha said.
Ethiopia is planning to build a number of dams for electricity generation, including a controversial hydroelectric dam on the Nile's upper reaches, which has strained relations with Egypt.
Ethiopia says it needs the dam to generate badly-needed energy. Egypt, for its part, fears the dam will reduce its traditional share of the Nile River – its main source of water.
Addis Ababa insists the new dam will benefit downstream states Egypt and Sudan, both of which will be invited to purchase the electricity thus generated.
Ethiopian authorities also commenced the construction of the Geba dam in September of this year in western Ethiopia at a cost of $583 million.

Sunday, October 12, 2014

Dam Rising in Ethiopia Stirs Hope and Tension - NYTimes.com

GUBA, Ethiopia — There is a remote stretch of land in Ethiopia’s forested northwest where the dust never settles. All week, day and night, thousands of workers pulverize rocks and lay concrete along a major tributary of the Nile River. It is the site of the Grand Ethiopian Renaissance Dam, the continent’s biggest hydropower plant and one of the most ambitious infrastructure projects ever in Africa.
Ethiopia is a poor country, often known best for its past famines, but officials say the dam will be paid for without foreign assistance — a point of national pride. Computer-generated images of the finished structure are framed in government offices, splashed across city billboards and broadcast in repeated specials on the state-owned television channel.
“We lean on the generousness of the rest of the world,” said Zadig Abrha, deputy director of the dam’s public mobilization office. “So there is a conviction on the part of the public to change this, to regain our lost greatness, to divorce ourselves from the status quo of poverty. And the first thing that we need to do is make use of our natural resources, like water.”


Continue reading the main story


Lake
Tana
SUDAN
Site of
Grand Ethiopian
Renaissance Dam
Blue Nile
SOUTH
SUDAN
ETHIOPIA
100 MILES
ERITREA
Red
Sea
YEMEN
SUDAN
Gulf of Aden
DJIBOUTI
Area of
detail
SOMALIA
Addis
Ababa
ETHIOPIA
SOUTH
SUDAN
250 MILES


Ethiopia, one of the world’s fastest-growing economies, has poured its resources into a slew of megaprojects in recent years, including dams, factories, roads and railways across the country.
But its strong, state-driven approach has been criticized for displacing rural communities, elbowing out private investors and muzzling political dissent. The Renaissance Dam, its biggest project, has met with resistance even outside Ethiopia’s borders, setting off a heated diplomatic battle with Egypt that, at one point, led to threats of war.
The hydropower plant is expected to bring Ethiopia’s electricity generation to more than triple its current capacity, Africa’s second most populous nation, where constant power shortages stifle economic growth. Aside from a $1 billion loan from China for a transmission line, the government projects a $4.02 billion cost for the dam, with more than $1.3 billion already spent.
Near the border with Sudan, the dam is inching skyward as workers apply layer after layer of concrete that will eventually create a reservoir covering nearly 650 square miles. About 8,500 workers live at the project site, served by several cafeterias, a market, a barbershop and spotty Wi-Fi access. Giant floodlights keep construction going around the clock, and employees often work the whole week through.
From the very beginning, this relentless drive has put Ethiopia at odds with Egypt. The Renaissance Dam is on the Blue Nile, a tributary that contributes most of the water flowing into the Nile River, heightening concerns that it could threaten Egypt’s most vital natural resource. Fears of armed conflict surfaced during the brief tenure of Egypt’s former president, Mohamed Morsi, who said last year that “Egyptian blood” would substitute for every drop of lost water.
But under Egypt’s current president, Abdel Fattah el-Sisi, the icy relationship between the two countries has begun to thaw. Ethiopia’s prime minister, Hailemariam Desalegn, and Mr. Sisi had a cordial first meeting in June, and water ministers from Ethiopia, Egypt and Sudan met for renewed discussions in late August. Egypt’s new foreign minister, Sameh Shoukry, set a diplomatic tone during a visit last month to the Ethiopian capital, Addis Ababa, declaring “a new phase of our relationship based on mutual understanding, mutual respect and a recognition that the Nile binds us.”
Ethiopia’s biggest obstacle to finishing the dam is not geopolitics — it is money. The project is overseen by Ethiopian Electric Power, a state-owned utility that is helping finance the project with its own revenue and loans from state-owned banks. Though the government may raise more money by selling bonds on global markets in the coming years, the current tactic of borrowing from state banks is draining available credit. That could squeeze private enterprise in a country that already has the world’s sixth-lowest rate of private investment as a percentage of G.D.P., said Lars C. Moller, the World Bank’s lead economist in Ethiopia.
“For every dollar of credit and every dollar of foreign exchange the project gets, there’s less for the rest of the economy, including the private sector,” he said.
“But in the long term, the investment is likely to pay off well,” Mr. Moller added, noting that Ethiopia’s plan to sell excess energy to neighboring counties could bring in about $1 billion in annual export revenue starting in 2021, four years after the dam is scheduled to be completed.
Ethiopia’s state finance minister, Abraham Tekeste, said it was a price worth paying. “We know that we are sacrificing in the short term, but this is for a long-term objective,” he said. “We don’t see any contradiction.”
More than $357 million spent so far has come from Ethiopians, both domestically and abroad, who have been encouraged to donate money or purchase bonds, according to Mr. Zadig.
Workers on the government payroll, some of whom make as little as $32.68 per month, have been pushed to buy bonds worth a full month’s salary every year through a system that deducts straight from their paychecks.


Photo


Workers excavated rocks at the site, in the country’s northwest.CreditJacey Fortin for The New York Times


Merera Gudina, an opposition party leader who teaches political science at the government-funded Addis Ababa University, said he and colleagues had complained when their wages were siphoned off for bond purchases, leading the university to stop the program after about one year.
“People were not against the dam, but there were a lot of logistical questions,” he said. “We were not paying voluntarily.”
The government also leads meetings to encourage private-sector workers to buy bonds. Wossene Hailu, whose Wossi Garment Design Factory sits on the outskirts of the capital, got involved when members of her garment association were invited to one of these gatherings. “We got a lot of information — how it’s done, how we can benefit from it, things like that — and everyone was convinced,” she said.
Ethiopia is desperate to spur manufacturing, which it sees as critical to its long-term growth. But the industry has been just 4 percent of the nation’s G.D.P. for years. Ms. Wossene’s lean enterprise fills small international orders and produces clothes and blankets for local markets, but she said whole-day power failures sometimes caused delays.




The situation is even more dire in rural areas, where most households are not connected to the grid. This is a symptom of broader developmental challenges: Despite government claims that the economy has grown at an average rate of 10.9 percent annually over the last decade, Ethiopia remains poor, with about 30 percent of the population living on less than $1.25 per day.