Ethiopia officially inaugurated the Grand Ethiopian Renaissance Dam (GERD) on Tuesday, reports Reuters. The $5 billion project, situated on a tributary of the River Nile, is expected to provide energy to millions of Ethiopians while further complicating relations with Egypt, which is concerned about the dam's impact on its water supply.
The dam is seen by Ethiopia, the second most populous country in Africa, with 120 million people, as a crucial element in its economic development strategy. Begun in 2011, GERD is projected to eventually generate 5,150 MW of electricity, an increase from the 750 MW produced by its two active turbines. Ethiopian Prime Minister Abiy Ahmed has emphasised that the energy produced will not only serve domestic needs but also enable Ethiopia to export surplus power to neighbouring regions.
Despite concerns, Ethiopia has pressed on with the project, asserting that it is exercising its sovereign right
However, Egypt, which relies on the Nile for around 90 per cent of its fresh water, has expressed strong opposition to the dam. The country, which built the Aswan High Dam in the 1960s, fears that GERD could limit its water supply, particularly during times of drought, and could set a precedent for other upstream dams. Egypt has argued that the dam violates water treaties dating back to the British colonial era and represents a threat to its water security.
Despite these concerns, Ethiopia has pressed on with the project, asserting that it is exercising its sovereign right. In 2020, the country began filling the dam's reservoir in phases, asserting that the project would not cause significant harm to downstream nations.
Independent research has shown that, so far, the dam has not caused major disruptions to downstream water flow, partly due to favourable rainfall and the cautious approach taken to filling the reservoir during wet seasons over a five-year period.
Funding for the GERD project has been primarily sourced from Ethiopia’s central bank, which provided 91 per cent of the required capital. The remaining 9 per cent was funded through bond sales and donations from Ethiopian citizens, with no foreign assistance, according to local media reports.
