Ethiopia: Opposition Supports Ruling Party on
Millennium Dam

04 April, 2011 | By Samson Haileyesus (Addis Fortune)
--------------------------------------------------------------------
An artist's rendition of the location where the Millennium Dam is being
built between Lebeyat and Neqor mountains on a one-kilometre
stretch of land in Benishangul-gumuz Regional State. Of the total 15
turbines the completed hydropower project is to contain, two are to
be operational in 44 months to generate 700MW of electricity.

    The laying of the
    foundation stone of
    Ethiopia's newest
    hydropower project
    resulted in a rare show
    of solidarity between
    the ruling and
    opposition parties as
    they joined hands in
support of the construction, on Saturday, April 2, 2011.

The project, which was initially dubbed "Project X," has been named
the "Great Millennium Dam" and will be constructed somewhere
between 20km and 40km from the Sudan border.

The move was welcomed by Forum for Justice and Democratic
Dialogue.

The development of the nation's hydroelectric power production is
long overdue, according to Beyene Petros (Prof), chairman of the
opposition coalition.

"It is right that Ethiopia uses its natural resources and we have no
opposition to the government's intention to build the dam," Beyene
said. "Our concerns are the after-effects of the move and whether
stakeholders, such as other riparian countries, were consulted. Such
moves need strong diplomatic support."

The announcement comes amidst a battle among riparian countries
over harnessing the 6,650km Nile River. A 1929 treaty brokered by
the former colonial power, Britain, granted Egypt veto rights over
projects that may alter the flow of the Nile. A 1959 pact between
Egypt and Sudan claimed 90pc of the Nile's waters for the two
countries.

However, a spring located upstream from Lake Tana in Ethiopia is the
source of about 85pc of the water flowing through Sudan and Egypt.

A Comprehensive Framework Agreement (CFA), signed thus far by
Ethiopia, Rwanda, Tanzania, Uganda, Burundi, and Kenya
established a commission to oversee dam building and irrigation
development, effectively stripping Egypt of its veto rights.

The construction of the dam should facilitate regional cooperation
rather than competition, Alemayehu Tegenu, minister of Water and
Energy (MoWE), said in the first official statement about the dam
following months of speculation, at the Sheraton Addis on
Wednesday, March 30, 2011.

"Ethiopia will use the water mostly for generating hydroelectric power
while the lower riparian countries of Sudan and Egypt can still use the
water for irrigation," the minister said. "They can also import electricity
from Ethiopia. If anything, the dam will help prevent flooding as well
as siltation."

The river's average discharge is estimated to be about 300 million
cubic metres per day, according to the Nile Basin Initiative (NBI).

The dam will have the capacity to hold 62 billion cubic metres of
water, double that of Lake Tana, according to Alemayehu.

However, Forum recommended a cautious approach.

"Plans need to be put in place in the event of other stakeholders
objecting to the plan," Beyene said. "We have not been informed if
there are any contingencies in place. The announcement was bold and
we believe the plan requires one to tread softly."

Yet, the minister was adamant in forging ahead.

"If we are not going to get along with our neighbours, our biggest
concern is for the safety of the people," Alemayehu said. "All
precautions will be taken and I am not saying that there are no
concerns, but, as with other [dam] projects, we have taken
precautions. "However, it is a well-known fact that the project would
ultimately benefit both Sudan and Egypt."

The hydro construction component of the project has been awarded
to Salini Costruttori, Italy's third largest general contractor that
constructs an average of around 52pc of its projects in Africa.

The water will be stored in narrow gorges, which would prevent
evaporation and retain 7.5 billion cubic metres, according to
Alemayehu. This would bolster Egypt's move to prevent the
evaporation of 80 billion cubic metres of water further downstream,
he said.

If the 17MW Jebel Awolia hydroelectric dam in Sudan closed and the
country started sourcing water from the Millennium Dam, it would
prevent even more evaporation, the minister suggested.

At the opening of the Hydropower for Sustainable Development
Conference 2011, held at the United Nations Economic Commission
for Africa (UNECA) last week, the administration's move towards
expanding its hydropower projects was also defended by Prime
Minister Meles Zenawi.

"We are so convinced of the justice of our cause, so sure of the
strength of our arguments, so convinced of the role of our
hydropower projects in eliminating poverty in our country, that we will
use every ounce of our strength and every dime of money that we can
save to complete our programme," he said.

"The average Ethiopian would be excused if he or she were to
conclude that everyone in the world supported our ambitious plans for
the sustainable development of our hydropower resources," he said.
"Most informed parties are supportive of our plan. There are only two
small, but important, constituencies that are the exception."

Egypt is waiting for the Ethiopian government's reply to its request for
technical and environmental studies on the Millennium Dam, Hussein
Al-Atfy, minister of Water Resources and Irrigation for Egypt, told Al
Masry Al Youm on Thursday, March 31.

"Egypt will examine the studies to determine the adverse
repercussions on Egypt's Nile water quota," Al-Atfy said.

It would resort to requesting intervention from the international
community if Ethiopia failed to reply, the minister said.

Yet, Ethiopia has discharged its duties towards all other riparian
countries for the past 13 years, according to the Ethiopian Ministry of
Foreign Affairs (MoFA).

"Any questions they have about the development of water have to
come through the CFA," Dina Mufti, spokesperson for the MoFA,
told Fortune. "This is the spirit and purpose of the CFA. We will not
deal with them unless it is through the CFA."

The country's right to the water was also defended by Alemayehu.

"We have to develop our resources and country to the last
centimetre," he said. "Partly as a ploy to divert attention from its
internal problems, the Egyptian leadership creates confusion whenever
the issue of water resources development is raised. We have found it
difficult to source financing from multilateral financial institutions and
donors because of the Egyptian leadership's continued campaigns to
block any provision of loans and grants to Ethiopia intended for
development projects centred on the Nile."

As a consequence, the Ethiopian government will bear the cost of the
Nile hydroelectric project alone. The construction of the Tana, Beles,
and partially that of the Gilgel Gibe II dam projects was financed by
the country.

The estimated cost of the dam is about 80 billion Br, four billion Birr
short of the Federal government's budget for this fiscal year.

Citizens can also help to finance the project by buying bonds from the
Ethiopian Electric Power Corporation (EEPCo), Alemayehu pointed
out.

The Millennium Dam is an important part of the government's plan to
meet the 10,000MW power generation target set in its GTP.

The Millennium Dam will have 15 units, each generating 350MW, and
will generate 5,250MW once becoming fully operational, according to
Semignew Bekele, project head of the Millennium Dam.

"Within 44 months, two of the units would be online and will allow for
the generation of 700MW of electricity," he told Fortune.

Ethiopia has the capacity to produce around 2,000MW from
hydroelectricity, geothermal energy, and diesel. The Gilgel Gibe and
Beles hydropower projects supply 47pc of the country's electricity.

"The stakes are extremely high as Ethiopia's biggest enemy is
poverty," Beyene said. "One way of fighting poverty is to nurture our
energy sector so that it can fuel development projects. If anyone tries
to prevent us from achieving this task, we will not be forgiving."

                                           
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