Constructions in the Grand Renaissance Dam started on April 2, 2011 at a cost of $4.8 billion. It was built by the Italian construction and engineering company Salini Impergilo. The Italian company is headquartered in Milan. The dam is located on the Blue Nile with a capacity of 74 billion cubic meters, and is expected to generate up to 6,000 megawatts of power.
The disagreement among Egypt, Sudan, and Ethiopia dates back to May 2011 when Ethiopia started building the dam; Egypt voiced concern over its water share [55.5 billion cubic meters]. Three years later, a series of tripartite talks between the two countries along with Sudan began to reach an agreement, while Ethiopia continued the dam construction.
In 2015, the three countries signed the Declaration of Principles, per which the downstream countries should not be negatively affected by the construction of the dam. In October 2019, Egypt blamed Addis Ababa for hindering a final agreement concerning a technical problem, calling for activating Article No. 10 of the Declaration of Principles, which stipulates that if the three countries could not find a solution to these disputes, they have to ask for mediation.
The main point of disagreement at present is that Ethiopia does not want a binding agreement, which has caused the suspension of talks. An agreement was reached in January but Ethiopia did not attend the signing meeting in Washington. Later, several negotiations rounds took place but were in vain culminating into the current stalemate.