Aswan Dam - Impacts

Impacts

The High Dam has resulted in protection from floods and droughts, an increase in agricultural production and employment, electricity production and improved navigation that benefits tourism. Conversely, the dam flooded a large area, causing the relocation of over 100,000 people and submerged archaeological sites, some of which were relocated as well. The dam is also blamed for coastline erosion, soil salinity and health problems.

The assessment of the costs and benefits of the dam remains a controversial issue, however, decades after its completion. According to one estimate, the annual economic benefits of the High Dam right after its completion were Egyptian Pound (EP) 255 million (US$587m using the 1970 exchange rate of 2.3 US$ per EP): EP140 million from agricultural production, EP100 million from hydroelectric generation, EP10 million from flood protection, and EP5 million from improved navigation. At the time of its construction, total cost, including unspecified "subsidiary projects" and the extension of electric power lines, amounted to Egyptian EP450 million. Not taking into account the negative environmental and social impacts of the dam, its costs are thus estimated to have been recovered within only two years. One observer notes: "The impacts of the Aswan High Dam (...) have been overwhelmingly positive. Although the Dam has contributed to some environmental problems, these have proved to be significantly less severe than was generally expected, or currently believed by many people." Another observer disagrees and recommended that the dam should be torn down. Tearing it down would cost only a fraction of the funds required for "continually combating the dam's consequential damage" and 500,000 hectares of fertile land could be reclaimed from the layers of mud on the bed of the drained reservoir.

Periodic floods and droughts have affected Egypt since ancient times. The dam mitigated the effects of floods, such as in 1964, 1973 and 1988. Navigation along the river has been improved, both upstream and downstream of the dam. Sailing along the Nile is a favorite tourism activity, which is mainly done during winter when the natural flow of the Nile would have been too low to allow navigation of cruise ships. A new fishing industry has been created around Lake Nasser, though it is struggling due to its distance from any significant markets. The annual production was about 35 000 tons in the mid-90s. Factories for the fishing industry and packaging have been set up near the Lake.