Despite obstacles which include lack of funds, environmental concerns and a troubled track record, Ethiopia has announced plans to construct a multi-billion dollar Nile River dam. The controversial “Grand Millennium Dam Project” could generate 5,000 megawatts of electricity, enough to power Ethiopia and its neighbors, including newcomer South Sudan. Ethiopia's Lake Tana is the source for the Blue Nile, one of two major tributaries for the world's longest river, the Nile. The Grand Millennium Dam is expected to be completed in 2015, and is part of Ethiopia's plan to become a major power hub in the continent and sell electricity to its neighbors. The Dam joins 25 more dams that are currently being built or already operating, the highest number in any African country. The Dam is raising tensions with Ethiopia's downstream neighbours like Egypt, who have expressed concern that it would significantly reduce the water flow of in their countries. Under a 1929 agreement, Egypt and Sudan have rights over all of the Nile's water. It is unclear how South Sudan's recent independence will affect this agreement, and Ethiopia and several other African countries are challenging this longstanding agreement. The potential environmental effects have also made this project very controversial. The cornerstone of the dam is the largest hydroelectric power plant in Africa, which will create Ethiopia's largest artificial lake, with a capacity of 63 billion cubic meters of water. Scientists warn that the lives of half a million people living around the lake would be affected, in addition to the detrimental impact on the wildlife of the region. Conservationists note that no environmental impact assessment report for the project has been published or even planned, and thus the consequences are far from clear. However, a similar report that Ethiopia released for another large dam project in the Omo River was widely criticized as inadequate, causing international donors such as the World Bank and the African Development Bank to drop funding. It is still unclear yet how Ethiopia will be able to fund this project, estimated at a cost of $4.7 billion. The government of Ethiopia has said it is committed to the Grand Millennium Dam despite the lack of international funds, and says it plans to finance the project by selling bonds to the public BM
