Aconfrontation between Ethiopia and Egypt over Nile river waters has been averted after an expert review of the controversial Grand Ethiopia Renaissance Dam project showed it would not have any adverse impacts on riparian countries.

Although Egypt continues to express reservations about the project, a report by the International Panel of Experts says the dam will not affect water flow to Sudan and Egypt. It notes that the dam will, in fact, be beneficial to the two countries, as it will regulate the flow of the Nile, reducing the incidence of flooding, which is quite high in Sudan.

The $4.8-billion project will have capacity to generate 5 250 MW.

“Construction of the dam is under way, taking into consideration the benefits of lower riparian countries. Just as Ethiopia has accepted the report, Egypt and Sudan should also do so,” says Dina Mufti, a senior official at the Ministry of Foreign Affairs.

In June, Egypt’s ousted President Mohammed Morsi said Cairo was determined to “defend each drop of the Nile with our blood” if that was what it would take to halt construction of the dam, which, he maintained, would reduce the flow of the river.

To avert the possibility of a war, the three nations opted for dialogue, culminating in the establishment of a Tripartite International Panel of Experts committee to investigate the impacts of the dam.

The committee, comprising ten experts drawn from the three nations and internationally, was also mandated to address the concerns of the two riparian countries.

The committee concluded that the project was being undertaken in accordance with international design criteria and standards.

According to the report, the dam would benefit not only Ethiopia in terms of access to energy and jobs, but would also help solve the problem of power shortages in the wider East Africa region by making electricity available at comparatively low cost.

Ethiopia has always miantained that the project would go a long way towards ensuring universal access to electricity for its 80-million people and that it would enable it to export power to neighbouring countries.

Only about 20% of Ethiopians have access to electricity and demand is increasing at a rate of 10% a year.

The Horn of Africa nation expects to earn $500-million a year from power exports to Kenya, Djibouti, South Sudan, Somalia and Uganda.

The dam, according to the report, would also solve the problem of frequent flooding, reduce evaporation loss, improve water management and enhance rural develop- ment in both Sudan and Egypt.

“In Egypt, the dam will improve flood control and the flow to the Aswan dam, reduce evaporation loss by as much as 12% and reduce sediment reaching the Aswan dam and increase its life by up to 100 years,” its states.

The dam, now at the 30% completion mark, is slated for completion in 2015.