Southern Africa: Nile Basin Initiative

Contact
       
Nile Basin Initiative Secretariat (Nile-SEC)

Executive Director: Mr. Patrick Kahangire
Address: P.O. Box 192, Entebbe, Uganda
Telephone: (256) 41 321329 or (256) 41 321424
Fax: (256) 41 320971
Internet Address: http://www.worldbank.org/afr/nilebasin or http://www.nilebasin.org/

Summary

1. The Nile Basin is shared by 10 countries: Burundi, DRC, Egypt, Eritrea, Ethiopia, Kenya, Rwanda, Sudan, Tanzania and Uganda. Although rich resources, Basin challenges are significant: four countries are among the world’s poorest; population will double in 25 years; environmental degradation severe; access to electricity less than 10%, and 7 countries suffer from internal or border conflicts. Yet, cooperative development of the Nile offers great opportunity to unlock economic growth, promote regional integration, and realize stability. One of the least developed rivers in the world, potential is significant to scale up investments for sustained growth and poverty reduction.

2. The Nile Basin Initiative (NBI). To realize these opportunities, in an historic move in 1999, the Nile countries established the NBI to pursue cooperative development, share substantial socioeconomic benefits, and promote regional integration. A Council of Ministers of Water Affairs provides overall guidance, with a secretariat based in Entebbe, Uganda. Sub-basin offices have been established in Addis Ababa, Ethiopia and Kigali, Rwanda to oversee preparation of investment projects in the Eastern Nile and Nile Equatorial Lakes regions², respectively. Progress to-date has been substantial.

3. Current Themes/Issues: After 7 years of intensive, but highly successful efforts to build trust, capacity and joint institutions, planning is now underway for large-scale joint development.

1st phase 1997-1999: getting started: NBI process launched, comprising facilitated dialogue, development of platform of trust, and adoption of a ‘Shared Vision’, leading to formal NBI launch in 1999 by 9 countries; many development partners joined the process.

2nd phase 1999-2001: a strategic action program: Identification of ‘strategic action program’, comprising (a) a suite of basin-wide sectoral projects (the Shared Vision Program-SVP) to build trust, capacity & an enabling investment environment, and (b) 1st round of cooperative investment projects (environment, power, irrigation, watershed, flood) involving 2 or more countries (Subsidiary Action Programs-SAP); International consultative meeting in Geneva in 2001 raises $130m from partners.

3rd phase 2001-2003: institutional consolidation & launch of SVP projects: Major capacity and trust building, with numerous international meetings and political dialogue; NBI Act 2002 passed by Ugandan Parliament to establish NBI legal status for Entebbe-based Secretariat; sub-basin organizations (for SAPs) established in Ethiopia and Rwanda; Nile Basin Trust Fund established by World Bank with donor partners; first SVP projects launched (all 8 projects launched by 2005); SAP preparation moving slowly, due to complex, sensitive multi-country dialogue on investment.

4th phase 2003: serious moves to major joint investment:

Eastern Nile: major turning point: Ambitious vision of prosperity and peace; substantial gains in commitment to major cooperative development, with high stakes but large potential benefits; feasibility & other studies for power generation & transmission, irrigation, flood control, watershed management etc. underway; political and technical groundwork led to successful,; commitment to ‘3 countries, 1 river system’ large-scale, joint, multi-purpose development, with possible joint institutions & asset ownership; imperative to get early results, but 15 year horizon.

Nile Equatorial Lakes: growing stakes and interest: greatly increased activity and commitment, with Rwanda assuming ministerial leadership; transboundary investments (again multipurpose, power, irrigation, fisheries, etc) under preparation; now under review to scale-up benefits; major focus on power generation & trade; growing interest of Egypt, continued strong donor support.

Key Issues

GENERAL BACKGROUND

The Nile Basin: Transboundary Challenges.. The River Nile - is an asset of extraordinary regional and global importance. The river system is shared by 10 countries - Burundi, Democratic Republic of Congo, Egypt, Eritrea, Ethiopia, Kenya, Rwanda, Sudan, Tanzania and Uganda. The river has played a central role in human settlement and the development of a rich diversity of cultures and livelihoods for millennia. The Baisn is rich in natural resources, yet the Nile countries face significant problems of a transbourndary nature. Collectively the Nile countries have a population of about 300 million people, a number that could double to 600 million by 2025. Four of the Nile countries are among the world’s 10 poorest (US $100–200 GPD per capita). Floods and droughts are endemic and environmental degradation severe. Less than 10% of the population has access to electricity while only 3% of the hydropower potential has been developed. Seven countries suffer from internal or border conflicts. Today all riparian states rely to a greater or lesser extent on the waters of the Nile for their basic needs and economic growth. Dispute over the control of Nile waters has been a longstanding obstacle to growth and development in the region.

Capturing Opportunities. Yet, cooperative development and management of the Nile system offers great opportunity to unlock economic growth, promote regional integration, and realize peace and stability. The Nile river system offers vast opportunities for multipurpose development, including hydropower generation, water supply for irrigation and human consumption, flood damage reduction, drought mitigation, watershed management, water conservation, and navigation. In addition, strategic investments in markets and growth poles have the potential to generate substantial economic benefits. As one of the least developed rivers in the world, there is significant potential to scale up and create the minimum infrastructure platform required for sustained growth and poverty reduction. Thus the Nile embodies both potential for serious conflict and potential for cooperation and mutual gain.

The Nile Basin Initiative (NBI). To capture the opportunities afforded by the Nile, in an historic move, the ten countries of the Nile - Burundi, DRC, Egypt, Eritrea³, Ethiopia, Kenya, Rwanda, Sudan, Tanzania and Uganda – established the NBI as a regional organization to develop the river in a cooperative manner, share substantial socioeconomic benefits, and promote regional peace and security. Formally established in 1999, the NBI is guided by a shared vision to achieve “sustainable socioeconomic development through the equitable utilization of, and benefit from, the common Nile Basin water resources” The NBI is governed by a Council of Ministers of Water Affairs. The NBI Secretariat is located in Entebbe, Uganda, while sub-basin offices have been established in Addis Abba, Ethiopia and Kigali, Rwanda, to oversee the development of investment portfolios in the Eastern Nile and the Nile Equatorial Lakes regions⁴, respectively. The initiative has made significant progress since its inception. After 7 years of intensive, but highly successful, efforts to build trust, capacity, and joint institutions, planning is now underway for large-scale joint development on the Nile.

Progress to Date

Progress on the Nile can understood in four distinct phases:

• 1 st Phase 1997-1999: Getting Started: The NBI process is launched, comprising facilitated dialogue, development of a basic platform of trust, and adoption of a ‘Shared Vision.’ This led to formal NBI launch in 1999 by 9 countries ( Eritrea as observer). Many development partners joined the process.
  
• 2 nd Phase 1999-2001: A Strategic Action Program: Growing relationships and trust; leading to the identification of ‘Strategic Action Program’, comprised of (a) a suite of basin-wide sectoral and thematic projects (the Shared Vision Program - SVP) to build trust, capacity & an enabling environment for investment, and (b) a first round of cooperative investment projects (environment, power, irrigation, watershed management, etc) involving 2 or more countries (Subsidiary Action Programs – SAPs). In 2001, the Nile riparians presented their Strategic Action Program to the world community at the International Consortium for Cooperation on the Nile (ICCON) meeting in Geneva. More than $130m was pledged by partners.
  
• 3 rd phase 2001-2003: Institutional Consolidation & Launch of SVP Projects: This phase was marked by major capacity and trust building, with numerous international meetings and political dialogue. The NBI Act 2002 was passed by Ugandan Parliament to establish NBI legal status for the Entebbe-based Secretariat. Sub-basin organizations (for the investment-oriented SAPs) were established in Ethiopia and Rwanda. A multi-donor Nile Basin Trust Fund was established by World Bank with close to $100 million in commitments from partners. The first SVP projects were launched (all 8 projects will be launched by 2005). The preparation of SAP projects began, but moved relatively slowly, due to the complexity and sensitivity of multi-country dialogue on investment.

• 4 th Phase 2003- on: SeriousMmoves to Major Joint Investment:
  • Eastern Nile: major turning point: The Eastern Nile countries ( Egypt, Ethiopia and Sudan) adopt an ambitious vision of joint prosperity and peace. Substantial gains in commitment are made to pursue major cooperative development, where stakes are high but potential benefits are recognized to be great. Feasibility and other studies are initiated for major power generation & transmission, irrigation and drainage, flood management, and watershed projects as part of the preparation of ‘fast-track’ projects, to demonstrate early results on the ground. This political and technical groundwork leads to successful; commitment to ‘3 countries, 1 river system’ large-scale, joint, multi-purpose development (multi-billions). This joint multipurpose development would likely include investments in power generation, storage for flood control and drought mitigation, irrigation and enhancement of rain-fed agriculture, watershed and environmental management, and targeted investment in growth poles. This may also include joint institutions, investments & asset ownership. While the imperative is to show early results on ground; achievement of long term goals will require 15 years. While physical investment will likely be in Ethiopia and Sudan, all three countries will realize substantial benefits. With peace in Sudan, major opportunities for development in South, as well as for cooperative investments with the North and with Ethiopia & Uganda.
    
  • Nile Equatorial Lakes: growing stakes and interest: Greatly increased activity and commitment, with Rwanda assuming ministerial leadership in the NEL region. Transboundary investments (power, irrigation, fisheries, river basin management, etc) are currently under preparation, and under review to scale-up benefits. A multipurpose project is emerging in the Kagera basin between Burundi, Rwanda, and Tanzania, including: including: Rusumo Falls hydropower development, transmission interconnections, and multi-purpose development (watershed management, irrigation, transboundary parks and tourism, and navigation). This will reduce power shortages, increase food production and provide significant environmental benefits. Regional cooperation will provide peace dividends for the Great Lakes region, struggling to recover from civil war. There is also growing interest/engagement of Egypt, discussing the potential to shift of production of rice/sugar etc to rain-fed areas, which would make significant strides towards regional integration and trade.

NBI Development Partnerships

The NBI process has been supported by strong partnerships since its inception. The NBI Development Partnership, which includes 17 bilateral and multilateral donors coordinated by the World Bank at the request of the riparians, not only provides financial support but is also actively engaged in facilitating the NBI process. To meet the complex needs of the NBI, a range of financial mechanisms are used to support the NBI, including an existing $100 million multi-donor trust fund administered by the World Bank as well as direct bi-lateral and multilateral support.

¹Eritrea is currently participating as an observer. The other nine riparian countries are full members of the NBI.
²Eastern Nile includes Egypt, Ethiopia and Sudan; Nile Equatorial Lakes include Egypt, Burundi , DRC, , Kenya, Rwanda, Sudan, Tanzania and Uganda.
³Eritrea is currently participating as an observer. The other nine riparian countries are full members of the NBI.
⁴The Eastern Nile currently includes Egypt, Ethiopia and Sudan; Nile Equatorial Lakes include Egypt, Burundi , DRC, Kenya, Rwanda, Sudan, Tanzania and Uganda.
⁵NBI Partners include African Development Bank, Canada, Denmark, European Union, Finland, France, GEF, Germany, Italy, Japan, Netherlands, Norway, Sweden, Switzerland, United Kingdom, World Bank and UNDP.