Could you give us a general presentation of your sector, of the water system situation and its management?

Ethiopia has about 12 water basins, out of which about 4 are dry basin. Ethiopia is geographically a high land and all water of Ethiopia, except few basins, flows into neighbours countries, a total of about 122 billion m3 per year. We contribute 86% of our water to the Nile basin and also several rivers flow to Kenya, Somalia. So out of this, water we utilise until now in irrigation is less that 5%, in hydropower it is less than 3%. Until recently we have had no policies on water. Now we have finished our policy, strategy and the sector program. We have put now a 15 years sector program. Water supply coverage in the country is a total of 31%, out of that, 85% of the population is living in rural areas, which coverage is 23% which is very low in Sub-Saharan countries. We are now the lowest in coverage. Water supply of the town is about 76% coverage. The next plan for improving our coverage is to reach 71% both in rural and urban in the next 15 years. Also in irrigation, our plan is to cover about 500 000 hectares, in hydropower also for internal use and trading with neighbours, the negotiations have already started. In general, most of our water flows to other countries and this needs some cooperation. Until recently there has been no cooperation in the Nile basin. In 1998 we agreed with some countries, especially Egypt and Sudan, to establish the Nile initiative. This initiative is divided into share division and subsidiary action. Share division includes all 10 countries: Egypt, Sudan, Eritrea, Uganda, Kenya, Burundi, Rwanda, Tanzania, Congo. The subsidiary action project is a project on ground which is divided into the Victoria lake and the eastern Nile which includes Ethiopia, Sudan, Egypt and Eritrea. Eritrea has been an observer until now in the Nile initiative. Starting from that, we agreed to establish office, the intro-office is established in Addis Ababa which gathers Ethiopia, Sudan and Egypt, it is the first time in the history of this area. We have come up with 7 projects to start with: modelling, forecast, irrigation, hydropower, water shade management, Baro Acobo water resource management and power trading.

What are you doing exactly to attract and ease investment in your sector and what is the situation right now?

We have already started the policy in the sector program, we need for a 15 year project about 7 billion USD. This is a huge amount money we cannot get from our treasury. We need private investors, especially in hydropower, irrigation and water shade management and so on. Until now we have put this in the poverty reduction program as one sector that is included in the Ethiopian government poverty reduction strategies. We are looking for financers or investors by coordinating with the Ethiopian government through finance and economy ministry. We have a good opportunity in the Nile initiative which is not only Ethiopian. Now we are first looking for investment through studies of the projects I mentioned before. Then we had Nile consortium in 2000 in Geneva. We have got about 40 millions for the eastern Nile for 2 to 3 years studies to bring for investors the projects that have already started and have already succeeded. The next step is an investment forum. This forum is organized in partnership with the World Bank. We plan to have it next year in Washington. Now our three countries office in Addis Ababa is coordinating this issue. It is under processing of having consultant to prepare this investment forum. The World Bank director also agreed on processing this forum. So especially when we come to hydropower trade, it is one of very easily secured investment with short time to get return. If you see, Egypt is now connecting power with Europe and northern African countries. Our power is connected to Sudan and Egypt, it is easy to connect with Europe and northern African countries. If it works, it has more potential than oil. This is a good opportunity.

Last August during the South African summit, hydropower was taken as renewable resource. Ethiopia has a big potential in hydropower in the region. We have a potential of 32 000 megawatts which might be even more. Egypt has no capacity in hydropower, about 3 000 megawatts are used, which they get from other sources not from hydropower. It is also the cheapest one.

To what extent do you work with international organizations such as the World Bank and NGOs to develop the sector?

Now we are seriously working as a partner with the World Bank, bilateral, NGOs and all donors which have representatives in Addis. Of course we prepare our sector program and strategy but we did not prepare ourselves with participation with these partners, especially UNDP, UNICEF. The World Bank is actively participating in the preparation of our sector program and strategy. We are present in the poverty reduction program. It is not new for them so they can easily support us. And also we coordinate NGOs in water supply and so on, there is a good connection. Nowadays more than 10 expertises are working in the World Bank office in Washington alone on the Nile issue. Also ADB is one of our big partners and they are supporting most of the studying program in the eastern Nile, the French government also. We signed last month with our finance and economy Minister for the Nile basin studies. Nowadays we have good partners, bilaterally and laterally. Norwegians are also ready to support us in hydropower and there is a good start with all partners.

Could you tell us about your background and how you became Minister?

I have four children, I have a master in irrigation engineering from the UK. Before being a minister I worked for 15 years in the water sector starting from expertises, designer, department head, team leader and growing up as a technical. When this government came into power I joined as a party member. Now I am a member of the police bureau of the current government. I have been minister for seven and half years. Before, there was no water resource ministry and this is a new one, before it was divided into different authorities such as the water supply and sanitation authorities. I am a professional and also a politician and that is very important because it helps you develop the sector.

What is your message to investors in the sector of water resources?

The water sector has now clear policies and strategies and sector program. We have almost finished our projects and master plan for our basins. It is ready for somebody who wants to invest. As you know Ethiopia has known drought and famine for almost a century and to come out from this, the only way is to manage the water resources. There is no country that can grow without control of its water resources. So it is a good opportunity to support the country and also yourself, especially power, irrigation. Ethiopia is near to Arab, European, and Northern African countries, which is one the cheapest investments. Ethiopia has also got high lands, low lands which have potential for different crops and organic natural plants like coffee and others. Any investor who comes will benefit from it and the country as well. We are ready. The sector is open for investors.