Nile, a congressional source told Reuters on
Wednesday.
But funding for HIV/AIDS, the food for peace program, international disaster assistance, and migration and refugee assistance would be unaffected, the official said. The Ethiopian foreign ministry was not immediately available for comment. The United States and Ethiopia have long been close allies, with Ethiopia often working in tandem with the U.S. officials against Somali Islamist insurgents. But U.S. officials have been frustrated by their inability to strike a deal. Ethiopia says the $4 billion dam will generate electricity and help lift its population of 109 million people out of poverty.
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But Egypt relies the Nile for more than 90 per cent of its fresh water supplies and fears the dams will exacerbate existing shortages. Negotiations have previously faltered over a demand from Egypt and Sudan that any deal should be legally binding, over the mechanism for resolving future disputes, and over how to manage the dam during periods of reduced rainfall or drought.
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