When it's finished, it will be Africa's largest hydroelectric power plant and will help solve a national energy crisis in Ethiopia.
But other countries in the region are concerned about the project. And how it will affect their water security.
The dam is being built on the Blue Nile, 40 kilometres from the Sudanese border. Ethiopia is the source of 85 percent of the river's waters.
But Egypt has long held the majority rights to the Nile. And relies almost entirely on the river for its water needs. Cairo is worried that the dam will affect the water supply downstream.
So, once the dam is built, who wins and who loses?
Presenter: Folly Bah Thibault
Bart Hilhorst, Water Resource specialist and former chief technical adviser for the FAO Nile Programme.
Wondwosen Seide, water consultant and hydro-politics specialist.
Mohamed Khairat, Founder and Editor in Chief of Egyptian Streets.
Source: Al Jazeera