Ethiopia and Egypt have agreed to resume talks over a controversial hydroelectric mega-dam that Addis Ababa is building over the Blue Nile river.

The dam, which is nearing completion, has been at the centre of diplomatic spats between the two countries as Egypt fears it could impact its essential water supplies while Ethiopia sees it as an integral part of its plans to electrify millions of homes.

Prime Minister Abiy Ahmed met Egyptian President Abdul Fattah al-Sisi in Cairo during which the two leaders agreed to negotiations over the filling of the dam’s reservoir and to try to finalise agreements in four months, according to a joint statement issued by the Ethiopian prime minister’s office.

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The huge reservoir has been filled over the last three rainy seasons as the dam wall was built up.

Egypt and the other downstream country, Sudan, expressed their opposition to this as it was carried out without a binding agreement between the three nations.

The African Union has commended the decision to resume talks. The dam’s construction began in 2011 and was initially scheduled to be completed in six years.