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A project that has a place in the soul of Ethiopians

A project that has a place in the soul of Ethiopians

                                                                                                              Dawit Miteku 03-29-16

Countries have an alienable right to utilize their natural resources in a way that would benefit their people. But, to use this natural resource there needs to be capability to do so. Human resource (knowledge and labor) and capital capability decides whether one can use its natural resources or not. As a result of Ethiopia’s limited capacity to utilize its natural resources, the country has been not able to utilize the immense water resource it has; especially on Nile tributary rivers.

There are those who link Ethiopia’s inability to utilize its water resource on its Nile tributary rivers with the in-approval of the lower riparian countries. But the truth is no this. Rather, it has to do with the fact that it is a poor country that is not capable to generate enough capital capability from within that would enable it to utilize the water.

Of course as the Nile River is a cross-boundary river, those countries the river touches have the right to utilize the resource of the water. But their utilization should be fair and appropriate without having negative impact one on the others. Ethiopia’s just right to utilize its tributary rivers have been lacking recognition from the lower riparian countries. This lack of recognition in addition to poverty has forced the country just to sit idly and not use its resource. It is not because the county has entered a contract that would prohibit it from using the water that it lacked to get the recognition to utilize its Nile tributary rivers.

Ethiopia didn’t make any kind of agreement that would prohibit it from utilizing the waters with the lower riparian countries of Egypt and Sudan. And there is not an international law that limits it from utilizing the water of its rives. The international water utilization law is based on a principle of fair and equitable utilization of water shares without one impacting the other. It is the water utilization agreement that was entered between Egypt and Sudan that blocked recognition to utilize its Nile tributary rives. This was the 1929 and 1959 agreement that was entered between the two countries without involving the country where more than 80% source of the river is situated in. As it is only those who entered the agreement that he law binds, it should not have any say on Ethiopia, as it is an agreement that was signed without involving/consisting Ethiopia. However, we have seen situations where the international community, international institution and associations took it as if the agreement also binds Ethiopia as well. As a result to this, any government of the world have been unwilling to give even a loan, let alone aid, when it comes to the money Ethiopia needs to utilize its Nile tributary rivers.

During all the three government regimes, international finance institutions, whether World Bank or IMF, including those friend countries of Ethiopia have closed their door when it comes development projects that will be spent on projects involving any of the tributary rivers. The international financial institutions; which knows that there are no international principle and laws that would prohibit Ethiopia from utilizing its Nile tributary river, reply to some of the loan question Ethiopia presents saying “first make sure you have the agreements of Egypt and Sudan saying they are not hurt by the project.”

There is one unforgettable story in relation to this. And this is related to the Fincha Sugar development, which was initiated during the military Derg reign. The Ethiopian government prepared a project that would produce sugar by using a sugarcane plantation that would be watered by Fincha River (a Nile tributary river), and went to to the World Bank for loan to execute the project. Note here that this project uses less than 1% of the Nile River that runs to Sudan and Egypt. The World Bank didn’t go its usual route of studying the feasibility of the project, its importance in befitting the people and improving the country’s economy or investigating if whether it violates international laws and all the agreements Ethiopia entered with other countries. Instead, it resorted to asking if the project doesn’t hurt Egypt. Egypt on its part refrained from commenting whether if it wants to the project to go ahead or not. This went on for six month. Considering the silence as an agreement on the part of Egypt, the loan was allowed for Ethiopia and the project started to be constructed.

After this, especially during the FDRE government, Ethiopia has started to utilize Nile tributary rivers. Tekeze power generating and Tana Beles project are a few. However, Ethiopia didn’t went out looking for loan to undertake these projects. The country has built them through its own capabilities. Had the country went through looking for loan, then it would have faced the usual ‘first get the approval from Egypt and Sudan’. I went back memory lane and mentioned this instance in order to show that what held Ethiopia from utilizing its Nile tributary rivers is not international law or agreements it entered with others, but only its poverty. And five years ago, on March 24 2011, Ethiopia officially started mega project for the first time – the Grand Ethiopian Renaissance Dam which generates 6000 megawatts of power. This project is built 40 kilometers away from the borders of the country with Sudan.

When it was decided to start this dam construction, Ethiopia didn’t ask anyone’s permission. There was nothing scraped or improved from the agreements Ethiopia entered with others, international water utilization principles or international laws. Everyone of them are as they were. There was one new thing that drove Ethiopia to make this decision – which is, the country’s decision to build the dam without wanting anyone’s support and loan, and by using only its own financial capabilities.

When he laid the cornerstone of the project that officialized the start of the construction, our great leader Ato Meles Zenawi in his speech has stated the project in way that touches every Ethiopians soul. As I don’t think it can bring anymore explanation on top of what our great leader Meles Zenawi stated at the time, and as the speech was historical and because it is fitting to recall the speech now during which we are marking its fifth year anniversary, I have decided to quote from the speech.

In his speech, the great leader said, “…Indeed, the current disposition is to make attempts to undercut Ethiopia’s efforts to secure funding to cover the cost of the project. We have, in fact, been forced to rely on our own savings alone to cover the expense. The estimated cost will be 3.3 billion Euros, or 78 billion birr. As we will be financing several other projects in our plan, the expense will be an additional and heavy burden on us. All our efforts to lighten this have been unsuccessful, leaving us with only two options. Either to abandon the project or do whatever we must to raise the required funds.

I have no doubt which of these difficult choices the Ethiopian people will make. No matter how poor we are, in the Ethiopian traditions of resolve, the Ethiopian people will pay any sacrifice. I have no doubt they will, with one voice, say: “Build the Dam!” National resolution may be indispensable, but it is not, however, sufficient. If we are to find development finance, we have to raise our financial weight by developing the culture of saving. The government will do everything possible to raise funds through increasing revenues and being careful of its expenditure. All the banks will be expected to actively promote and to accumulate savings. Importantly, the Ethiopian people will also be able to contribute their share in bringing the construction of this historic Dam to completion.

To enable every Ethiopian to do this, the government has launched treasury bonds offering five per cent interest. Buying these bonds will allow all Ethiopians to benefit from the interest paid, and play their part in the completion of the construction of the Millennium Dam according to their income.”

As a result to this, the Ethiopian people decided to build the Grand Renaissance Dam with their own capabilities. For the past five years, the people have pledged up to 12 billion birr that would be used on the construction of the dam. Out of this, more than 8 billion birr have been collected so far. This year alone, 500 hundred thousand birrr, out of a pledged 800 hundred thousand birr, has been collected. It is expected that the rest of the money will be collected. The active participation shown from the government and supervising personnel in buying the bond and in keeping their words should be mentioned as a model.

Ethiopians that live abroad and Ethiopian born have tried to contribute their part in the construction of the dam through bond procurement and aid. Information show that Ethiopian living abroad and Ethiopian born have so far given 36 million USD (720 million birr). Although more is expected of them compared to their capabilities, still their support is satisfactory.

In addition to the support the Ethiopian people gave to the construction of the dam in the shape of bond procurement, they have also been supporting the project by participating in lottery competitions. And they still are giving their support. Citizen are thinking about the prizes they would be wining from the lottery competitions, but the support they would be giving to the project. Especially, those citizens with low level income have taken the scheme as a good opportunity to play their part and give their support to the project. And this shows the desire of the Ethiopia people to support the project as owners of the project.

Although the Ethiopian farmers didn’t enter into supporting the dam project in money and in an organized manner, the work they put in on irrigation and natural conservation in order to lessen the silt of the dam and ensure long term service of the dam is a huge contribution. If this contribution the farmer put in is monetized, it is projected to be in the twenty billion regions. This dam construction project, which the whole people of Ethiopia are putting their effort into, has been halved. The level the project has reached has ensured to the owners of the dam that the project will be surely finished, and this has increased their motivation. Two weeks later on March 24, 2016, the fifth anniversary of the project will be marked, with the theme “the Grand Renaissance Dam is the light of our renaissance“. The day will be marked through various programs where the Ethiopian people will participate in, it is expected that the day will present the opportunity for the people to renew their pledges. As a result, the day will also be marked from federal up to regional level with various art and sporting events, tours and programs that would elevate the involvement of the people.

In the day where we mark the fifth anniversary of the start of the construction of the dam, the Ethiopian people should renew reaffirm their commitment and its pledge to support the dam recalling that the country was not able to utilize its on resources only because lack of financial resource. They should also be reminded of the fact they are moving up to the level where they will bring Ethiopia’s renaissance, wining against poverty together in unity and collaboration. The Grand Renaissance Dam is a light that shows the path we are making towards our renaissance.

 

 


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