Dams and reservoirs in Ethiopia
In order to become the powerhouse of Africa, Ethiopia is actively exploiting its water resources by building dams, reservoirs, irrigation and diversion canals and hydropower stations.The following sections describe the impacts of the dams in more detail as objectively as possible, in order to provide a basis for such an assessment by the reader.The almost exclusive reliance on hydropower makes electricity generation vulnerable to droughts, which may be exacerbated by climate change.[3] Last but not least, the dams are built in an environment of poor governance: Most contracts have been awarded without competitive bidding, raising the suspicion of corruption.The above concerns have hampered access to financing from international financial institutions, slowing down the dam building program.These subsidies have a high opportunity cost, since the scarce government funds are not available for other investments in education, health, agriculture or forestry.The Gibe II dam has been affected by such problems even after its completion, when a tunnel collapsed and put the hydropower plant out of service for several months.[5] Ethiopia's rivers carry a high silt content, due to heavy erosion which is accelerated by deforestation and inappropriate agricultural practices on steep mountain slopes.The three countries did however sign the Declaration of Principles in 2015 which makes no reference to historical treaties and encourages cooperation and equitable use of Nile waters.Contracts to build the first dams in Ethiopia constructed under the government of Meles Zenawi, who came to power in 1991, have been awarded after competitive bidding.Because of this political climate, no groups are actively pursuing the issues surrounding hydropower dams, nor publicly raising concerns about the risks.