Aswan Dam
Effects

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

The assessment of the costs and benefits of the dam remains controversial decades after its completion. According to one estimate, the annual economic benefit of the High Dam immediately after its completion was E£ 255 million, $587 million using the exchange rate in 1970 of $2.30 per E£1): E£140 million from agricultural production, E£100 million from hydroelectric generation, E£10 million from flood protection, and E£5 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 E£450 million. Not taking into account the negative environmental and social effects 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 disagreed and he 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 (1,900 sq mi) of fertile land could be reclaimed from the layers of mud on the bed of the drained reservoir. Samuel C. Florman wrote about the dam: "As a structure it is a success. But in its effect on the ecology of the Nile Basin – most of which could have been predicted – it is a failure".

Periodic floods and droughts have affected Egypt since ancient times. The dam mitigated the effects of floods, such as those 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 the 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-1990s. Factories for the fishing industry and packaging have been set up near the Lake.

According to a 1971 CIA declassified report, although the High Dam has not created ecological problems as serious as some observers have charged, its construction has brought economic losses as well as gains. These losses derive largely from the settling in dam's lake of the rich silt traditionally borne by the Nile. To date (1971), the main impact has been on the fishing industry. Egypt's Mediterranean catch, which once averaged 35,000-40,000 tons annually, has shrunk to 20,000 tons or less, largely because the loss of plankton nourished by the silt has eliminated the sardine population in Egyptian waters. Fishing in high dam's lake may in time at least partly offset the loss of saltwater fish, but only the most optimistic estimates place the eventual catch as high as 15,000-20,000 tons. Lack of continuing silt deposits at the mouth of the river also has contributed to a serious erosion problem. Commercial fertilizer requirements and salination and drainage difficulties, already large in perennially irrigated areas of Lower and Middle Egypt, will be somewhat increased in Upper Egypt by the change to perennial irrigation.
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