It is not clear how many millions of dollars in aid are being affected, or for how long but a congressional source said the US has decided to cut $100 million in aid.

US Secretary of State Mike Pompeo speaks during a news conference at the State Department in Washington, DC, US September 2, 2020.
US Secretary of State Mike Pompeo speaks during a news conference at the State Department in Washington, DC, US September 2, 2020. (Reuters)

On the guidance of US President Donald Trump, the State Department is suspending some aid to Ethiopia over the “lack of progress” in the country’s talks with Egypt and Sudan over a massive, disputed dam project it is completing on the Nile River.

A State Department spokesperson told The Associated Press the decision to “temporarily pause” some aid to a key regional security ally “reflects our concern about Ethiopia’s unilateral decision to begin to fill the dam before an agreement and all necessary dam safety measures were in place.”

It is not clear how many millions of dollars in aid are being affected, or for how long. The decision was taken by Secretary of State Mike Pompeo “based on guidance from the president,” the spokesperson said on Wednesday.

Ethiopia this week said it was asking the US for clarification after a media report said Pompeo had approved cutting up to $130 million in aid because of the dam dispute. The report by Foreign Policy last week set off an uproar among some in Ethiopia, which sees the dam as a source of national pride.

US to cut $100 million

The US has decided to cut $100 million in aid to Ethiopia, a congressional source said.

"State has decided to cut assistance" due to Ethiopia’s position on GERD negotiations, the source told Reuters via email.

"Up to $100M or so will be affected, of which $26M is funding that expires at the end of the (financial year)," the email said.

The source said much of the expiring funding deals with regional or border security, political competition and consensus-building, and nutrition.

But funding for HIV/AIDS, the food for peace program, international disaster assistance, and migration and refugee assistance would be unaffected, the official said.

Knock on effect?

Africa’s largest hydroelectric dam has caused severe tensions with Egypt, which has called it an existential threat and worries that it will reduce the country’s share of Nile waters. Ethiopia says the $4.6 billion dam will be an engine of development that will pull millions of people out of poverty. Sudan, in the middle, worries about the effects on its own dams though it stands to benefit from access to cheap electricity.

Years of talks among the countries have failed to come to an agreement. Key remaining issues include how to handle releases of water from the dam during multi-year droughts and how to resolve future disputes.

Pope Francis recently urged Egypt, Ethiopia and Sudan to continue talks amid regional concerns that the dispute could lead to military conflict.

READ MORE: Egypt and Sudan withdraw from dam talks with Ethiopia 

Stalled negotiations

The US earlier this year tried to mediate the discussions, but Ethiopia walked away amid accusations that Washington was siding with Egypt. Now the three countries are reporting any progress to the African Union, which is leading negotiations.

The dam’s 74 billion-cubic-metre reservoir saw its first filling in July, which Ethiopia’s government celebrated and attributed to heavy rains. Ethiopia had said it would fill the dam with or without a deal with Egypt and Sudan.

The State Department spokesperson said, “The United States has been increasingly concerned by the lack of progress in the negotiations of a trilateral agreement” on the dam’s filling and operation, but said the US continues to work with all three countries on the issue.

“The United States previously and repeatedly expressed its concern that commencing the filling of the GERD before all necessary dam safety measures were implemented created serious risks for the populations of the downstream countries,” the spokesperson added. “In addition, filling while negotiations were underway undermines the other parties’ confidence in the negotiations.”

The State Department spokesperson says aid will continue for Ethiopia’s response to Covid-19 and HIV and “certain humanitarian assistance to aid those affected by conflict, drought, displacement, and other humanitarian challenges.”

READ MORE: Is Ethiopia close to rejecting the US mediation over the Nile Dam project? 

Source: TRTWorld and agencies