Emperor Haile Selassie was offended by President Nasser’s exclusion of Ethiopia in the Nile Waters Agreement and in planning for building the Aswan Dam. He negotiated the 1959 divorce of the Ethiopian Orthodox Church from the Orthodox Church in Alexandria, ending 1600 years of institutional marriage.
He also began planning for several dams on the Blue Nile and its tributaries, contributing $10 million dollars from the Ethiopian treasury towards a study by the U.S. Department of Reclamation resulting in a seventeen volume report completed in 1964 and titled Land and Water Resources of the Blue Nile Basin: Ethiopia.
Nasser responded by encouraging Muslims in Eritrea (reunified with Ethiopia after World War II) to secede from Ethiopia. He also encouraged Muslim Somalis to fight for the liberation of Ethiopia’s Ogaden region.
Ethiopia won the war with Somalia in 1977-78 and retained the Ogaden. Its 30 year war with Eritrea, an Egyptian ally, came at a tremendous cost. Haile Selassie was overthrown in 1974, and after 1993 Eritrea won independence and Ethiopia became a landlocked country—although it still possessed the headwaters of the Blue Nile.
In the middle of the 1980s, rains failed in the Ethiopian highlands, causing a serious water crisis upriver and downriver. One million Ethiopians died as a result of drought and famine—made worse by Civil War with Eritrea. Egypt averted disaster but Aswan’s turbines were nearly shut down, creating an electric power nightmare; and crops failed in the delta, bringing the real prospect of famine.
As a result, Egyptians came to understand that their great Aswan Dam had not solved their historic dependency on upriver Nile water. In 1987, after years of hostile rhetoric, the Egyptian President Hosni Mubarak and the Ethiopian President Haile Mariam Mengistu replaced the language of threat and confrontation with words of conciliation and cooperation.
Then in the 1990s the Ethiopian rains returned and, remarkably, Hosni Mubarak redoubled efforts begun during the Sadat administration to build the Toshka Canal, one of the world’s most expensive and ambitious irrigation projects. This plan would take 10% of waters in Lake Nasser to irrigate Egypt’s sandy Western Desert, increasing Egypt’s need for Nile water even if they maintained their 1959 treaty share of 55 billion cubic meters.

In anger and disbelief, the Ethiopian Prime Minister Meles Zenawi protested: “While Egypt is taking the Nile water to transform the Sahara Desert into something green, we in Ethiopia—who are the source of 85% of that water—are denied the possibility of using it to feed ourselves.”
He then began plans for the Grand Renaissance Dam.
International water law has not resolved differences about ownership of Nile Waters. The Helsinki Agreement of 1966 proposed the idea of “equitable shares”—and the idea was taken up again in the 1997 United Nations Convention on the Law of Non-Navigational Uses of International Watercourses.
A proposal for “equitable shares” was again put forward in the 1999 Nile Basin Initiative, which included all the affected countries. Unfortunately the initiative did not resolve the conflict between Egypt and Sudan’s claims of historic rights and the upper river states’ claims for equitable shares.
In 2010, six upstream countries (Ethiopia, Kenya, Uganda, Rwanda, Burundi, and Tanzania) signed a Cooperative Framework Agreement seeking more water shares. Egypt and Sudan rejected the agreement because it challenged their historic water rights.
Ethiopia and the Lessons of Dam Building
One lesson from the last century of mega-dam building is that upriver countries have the most power when negotiating water rights. The first of the mega-dams, the Hoover Dam on the Colorado River in the United States, cost Mexico water. The Ataturk Dam in Turkey has had a devastating impact on downriver Syria and Iraq. China and Tibet control waters on multiple rivers flowing downstream to India, Pakistan, Myanmar, Bangladesh, and Vietnam.
Another lesson is that mega-dams have enormous and unanticipated environmental impacts. The Aswan High Dam has disrupted the ecosystems of the river, the delta, and the Mediterranean with results of reduced agricultural productivity and fish stocks. It also caused a series of seismic events due to the extreme weight of the water in Lake Nasser, one of the world’s largest reservoirs.
Although late to mega-dam building, Ethiopia is now making up for lost time. One of the tallest dams in the world was completed in 2009 on the Tekeze River in northern Ethiopia. Three major dams on the Omo and Gibe Rivers in southern Ethiopia are either completed or nearly so.
The biggest of Ethiopia’s water projects, the Grand Renaissance Dam, will have a reservoir holding 67 billion cubic meters of water—twice the water held in Lake Tana, Ethiopia’s largest lake—and is expected to generate 6000 megawatts of electricity.
Ethiopians hope these water projects—which extend to 2035 with other Nile tributaries and river systems—will lift their country out of poverty. Similar large dams have produced economic miracles in the United States, Canada, China, Turkey, India, Brazil, and, of course, Egypt.
Ethiopia’s options for economic development are limited. With nearly 90 million people it is the most populous landlocked country in the world. It is also one of the world’s poorest countries—174 on the list of 187 countries in the United Nations Human Development Index for 2012. (Sudan is 169 and Egypt 113.) This index rates countries based on life expectancy, education, and income, among other criteria.
Part of Ethiopia’s challenge is that 85 percent of the workforce is in agricultural commodities that bring low profits. Ethiopia is already leasing land in its southern regions to Saudi Arabia, India, and China for large irrigated water projects—despite severe land shortage in its northern regions—because it does not have the funds to develop this land on its own.
If Ethiopia cannot use its elevation and seasonal rains for hydro-electric power and irrigation, what is it to do?
The Grand Renaissance Dam
The state-owned Ethiopian Electric Power Corporation optimistically reports that the Grand Renaissance Dam will be completed in 2015 at a cost of nearly 5 billion dollars. As of 2013, the project is 13% complete, suggesting that it may be many years and billions of dollars before the dam is finished. The Tekeze dam was well over its predicted budget and years behind schedule.
The major obstacle to completion is financing.
The World Bank, the European Investment Bank, the Chinese Import-Export Bank, and the African Development Bank provided financing for some of the other dams; but concerns about the environmental and political impact of this latest dam have discouraged lenders.
The International Monetary Fund suggested that Ethiopia put the dam on a slow track, arguing that the project will absorb 10% of Ethiopia’s Gross Domestic Product, thus displacing other necessary infrastructure development.
Nevertheless the Ethiopian government insists that it will stick with its schedule and finance the project domestically. It probably will secure more help from China, a loyal ally and the world’s major developer of hydroelectric power.
The Ethiopians argue that the Grand Renaissance Dam could be good for everyone. They contend that storing water in the deep Blue Nile Gorge would reduce evaporation, increasing water flows downstream.
The Ethiopians also argue that the new dam will be a source of hydroelectric power for the entire region and will manage flood control at a critical juncture where the Nile Gorge descends from the Ethiopian highlands to the Sahel, thus reducing risk of flooding and siltation, extending the life of the dams below stream.
Egypt and Sudan are understandably concerned about Ethiopia’s power over Nile waters. What happens while the reservoir behind the Grand Renaissance Dam is filling up, when water flow may be reduced 25 % for three years or more? After the reservoir is filled what will happen when rains fail in the Ethiopian highlands? Who will get the water first?
If the question of Nile waters was sensitive in the centuries before 1900, when Ethiopia and Egypt each had populations of 10 million or less, what will happen over the next twenty years, as their populations each surpass 100 million and the collective population of the Nile River Basin countries reaches 600 million?
The Grand Renaissance Dam poses a question as basic as water itself: Who owns the Nile? When the Grand Renaissance Dam closes its gates on the Blue Nile River, whether it is in 2015 or 2025, the time for a final reckoning will have arrived.
Ethiopia will then have the power to claim its water shares, with the backing of all the upriver states. Egypt and Sudan’s claims to historic water rights will have become merely hypothetical. In the context of a difficult history, violence is a possibility, but good solutions for all can be achieved through diplomacy and leadership.
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