U.S. State Department Spokesperson Jen Psaki said on Wednesday that the White House wishes that Egypt and Ethiopia would work together to make the effects of a dam that Ethiopia plans to erect on the Nile River beneficial for the whole region.

“Over the last year we have seen good cooperation between the Ethiopian and Egyptian governments to jointly examine the impacts of the Grand Ethiopian Renaissance Dam (GERD),” Psaki said, according to a post on the foreign office’s official website.

She added, “We encourage both countries to continue working together constructively to minimize the downstream impacts of GERD and develop the Blue Nile for the benefit of all the people in the region.”

On Monday, President Mohamed Mursi met with politicians and experts to discuss a report on the effects of the proposed dam, which has spread panic in Egypt since its announcement.

The Nile River is the main source of water for Egypt's 80-million population.