Nile Dam Row: US ‘to cut $ 100 million in aid’ to Ethiopia

The United States is reportedly cutting $ 100 million (£ 75 million) in aid to Ethiopia for a controversial mega-dam being built on a tributary of the Nile River.

A government source said the move was triggered by Ethiopia’s decision to start filling the dam before reaching an agreement with Egypt and Sudan.

Egypt has long opposed any development on the Nile that could reduce the amount of water it receives.

Ethiopia says it needs the dam to provide a reliable power supply.

Once fully operational, the Great Ethiopian Renaissance Dam (Gerd) will be the largest hydroelectric plant in Africa, providing power to up to 65 million Ethiopians.

“Up to $ 100 million approximately will be affected, of which $ 26 million are funds that expire at the end of the [financial year]”a source in the US Congress told the Reuters news agency.

The affected funding is linked to nutrition, regional or border security, political competition and consensus building, the official said. Funding for projects related to HIV / AIDS, migration and refugee assistance, and the Food for Peace program would not be affected.

A US State Department official told Reuters that Ethiopia’s decision to begin filling the dam while negotiations with Egypt and Sudan were ongoing had undermined confidence in the talks and was inconsistent with commitments made by Ethiopia.

“The United States previously and repeatedly expressed concern that starting to fill the Gerd before all the necessary security measures for the dam were implemented created serious risks,” the official said.

“We have asked them to reconsider and we are waiting. We hope that 117 years of diplomatic relations will not be damaged by an issue not related to the two countries,” said Fitsum Arega.

Correspondents say the move is likely to be viewed as US President Donald Trump punishing Ethiopia after the country rejected US-led mediation with Egypt and Sudan.

The talks have stalled over several issues, including demands from Egypt and Sudan that any agreement must be legally binding and how to manage the dam during periods of drought.

The Gerd is located on the Blue Nile upstream from Egypt and has the potential to control the flow of water the country receives. The Nile is Egypt’s main source of water for drinking and agriculture.