Egypt, Ethiopia, and Sudan sign new Grand Renaissance Dam agreement

By Khalid Abdelaziz
KHARTOUM, Dec 29 (Reuters) - Egypt, Ethiopia, and Sudan
signed an agreement on Tuesday finalising the two firms tasked
with carrying out studies on the potential impact of Ethiopia's
Grand Renaissance Dam on the flow of the Nile, their foreign and
water ministers said.
The three countries had initially picked French firm BRL and
Dutch firm Deltares in April but Deltares later withdrew leading
them to replace it with French firm Artelia on Tuesday.
The leaders of the three countries signed a co-operation
deal in Khartoum in March that paved the way for a joint
approach to regional water supplies.
Cairo and Addis Ababa had previously been locked in a bitter
war of words over Ethiopia's $4 billion project.
Tuesday's agreement came after talks between the foreign and
water ministers of the three countries had to be extended for a
third day.
Technical studies will start in February, when the six
ministers are due to meet again, and will take between six and
15 months, Sudanese Water Resources, Irrigation, and Electricity
Minister Moataz Mousa said.
The principles in the March agreement included giving
priority to downstream countries for electricity generated by
the dam, a mechanism for resolving conflicts, and providing
compensation for damages.
Signatories also pledged to protect the interests of
downstream countries when the dam's reservoir is filled.
Addis Ababa has long complained that Cairo was pressuring
donor countries and international lenders to withhold funding
from the 6,000 megawatt dam, which is being built by Italy's
largest construction firm Salini Impregilo SpA SALI.MI .
Egypt, which relies almost exclusively on the Nile for
farming, industry and domestic water use, has sought assurances
the dam will not significantly cut its flow to its rapidly
growing population.
Even before the impact studies have been started, officials
say 50 percent of the dam's construction has been completed.
"We are satisfied with the results of this meeting and look
forward to achieving a strategic partnership," said Egyptian
Foreign Minister Sameh Shoukry.
Ethiopia, the source of the Blue Nile which joins the White
Nile in Khartoum and runs on to Egypt, says the dam will not
disrupt flow. It hopes the project will transform it into a
power hub for the electricity-hungry region.
"We see the agreement over these companies as progress and
look forward to actualising the interests of the three
countries. We believe the dam will be useful to the three
countries," said Ethiopian Foreign Minister Tedros Adhanom.
The Grand Renaissance Dam is the centrepiece of Ethiopia's
bid to become Africa's biggest power exporter. Addis Ababa plans
to spend some $12 billion on harnessing its rivers for hydro
power production in the next two decades.