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Prospects for Developing the Nile
1920 GMT, 010803

Summary

States in the Nile River basin are taking an unprecedented step toward
cooperation and river development. The new International Consortium for
Cooperation on the Nile, funded by the World Bank and other aid donors, will
conduct a series of studies to determine the feasibility of developing the
world's longest river. The first few projects will become the test case and
set the tone for future efforts toward cooperation and river development.

Analysis

The new International Consortium for Cooperation on the Nile (ICCON) met for
the first time June 26 through 28, gaining an initial $140 million in donor
money. The consortium, comprising the 10 states along the Nile, is charged
with designing a program for basin-wide development.

The ICCON and its affiliated organization, the Nile Basin Initiative, signify
an unprecedented step in regional cooperation: the first basin-wide approach
toward Nile River development. In the past, Egypt has jealously guarded Nile
waters, its most precious resource, against widespread diversion. Now, all 10
Nile riparian countries -- Burundi, Democratic Republic of the Congo, Egypt,
Eritrea, Ethiopia, Kenya, Rwanda, Sudan, Tanzania and Uganda -- are
cooperating to advance river development. But cooperation may bog down
quickly when water diversion actually begins. The first few projects to be
implemented will become the test case for the future of both ICCON and for
cooperation among Nile basin nations.

The Nile is the longest river in the world, stretching 4,130 miles from its
sources in Equatorial Africa and the Ethiopian mountains to the Mediterranean
Sea. The headwaters spew from Lake Victoria in the Great Lakes region and
from the Ethiopian highlands.

The river has long been a source of conflict and discord. Although 10 African
countries lie along the Nile basin, only two have a legal claim to use the
river's water. A 1959 agreement gives Egypt the lion's share of the river's
estimated annual flow of 84 billion cubic meters (bcm). Sudan receives only
18.5 bcm of the water for domestic use, and Egypt claims the right to
approximately two-thirds, or 55.5 bcm of water per year. Until now, none of
the other eight states have had the right to develop the river's resources.

That could soon change. ICCON was formed to spearhead river development
initiatives involving its sister organization, the Nile Basin Initiative, and
international aid donors. ICCON is a consultative group cooperating with the
World Bank, the United Nations Development Program, the Canadian
International Development Agency, the European Union, the Global Environment
Facility and a coalition of interested non-governmental organizations.

The Nile development program is still in its early phases. The pledged $140
million will be used to conduct a series of feasibility studies and develop a
legal framework for sharing the river's water. Development projects will
focus primarily on developing the Eastern and Equatorial Nile sub-basins as
well as on some broader initiatives.

Participating countries are attempting to lay a foundation for future river
development. Although no projects have yet been agreed to, international
donors have signaled willingness to provide $3 billion for the first phase of
investment and development. Future projects will likely include the
construction of new dams and irrigation systems.

Herein lies the potential for conflict. The construction of dams and the
diversion of water for additional irrigation systems will alter the
distribution of Nile River waters. Clearly, increased use by one Nile basin
country will decrease the water available to others. Egypt, the traditional
ruler of the Nile, in the past threatened more than once that any development
of the Nile by other riparian states would be seen in Cairo as a threat to
national security and could possibly lead to war.

Already, conflict has hampered economic development of the Nile by most
riparian states. Currently, at least seven of the 10 are engaged in some form
of conflict. Burundi and Sudan are both caught up in civil wars. In the
Democratic Republic of the Congo, Eritrea, Ethiopia, Rwanda and Uganda,
internal and regional strife has largely curtailed any plans these
governments might have for expanding or developing Nile river projects.

Each of the Nile River states has its own motives to cooperate on
development. The recent funding from the World Bank is the first step toward
making cooperation a reality and laying the groundwork for actual
development.

But it will be the first few projects - perhaps a new dam in Uganda or a new
irrigation system in drought-stricken Ethiopia - that will serve as the real
test of cooperation among the Nile basin states. The loss of significant
water resources in a desert region plagued with drought has historically
prompted conflict. Despite the best intentions of the riparian states,
conflict is likely to reemerge



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