A new £4 billion mega-dam is now the largest in Africa and is set to transform the country.
The Grand Ethiopian Renaissance Dam, formerly known as the Millennium Dam and sometimes referred to as the Hidase Dam, is a gravity dam on the Blue Nile River.
The dam is in Guba, in the Benishangul-Gumuz Region of Ethiopia, about 9 miles east of the border with Sudan.
Constructed between 2011 and 2023, the dam's primary purpose is electricity production to relieve acute energy shortages and export electricity to neighbouring countries.
With an installed capacity of 5.15 gigawatts, the dam is the largest hydroelectric power plant in Africa and among the 20 largest in the world.
The potential impacts of the dam have been the source of severe regional controversy.
Egypt, which depends on the Nile for about 90% of its water, has demanded construction stop as a precondition to negotiations and has sought regional support for its position, with some political leaders discussing methods to sabotage it.
However, other nations in the Nile Basin Initiative have expressed support for the dam, including Sudan, the only other nation downstream of the Blue Nile.
Ethiopia denies that the dam will negatively impact downstream water flows and contends that it will, in fact, increase water flows to Egypt by reducing evaporation on Lake Nasser.
The lack of international financing for projects on the Blue Nile River has persistently been attributed to Egypt's campaign to keep control of Nile water sharing.
Ethiopia has been forced to finance the GERD through crowdsourcing through internal fundraising, such as selling bonds and persuading employees to contribute a portion of their income. The Exim Bank of China donated £793 million for turbines and electrical equipment.
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