if you mean the Grand Ethiopian Renaissance Dam, its a dispute about water.
the dam will block the flow of the Blue Nile, one of the tributaries of the Nile proper. like all dams, it will create a lake behind it, and egypt is basically upset that this dam will reduce the amount of water they will get for several years until the lake has filled up (anything up to 7 years form now, depending on a host of variables, some man made and some natural).
Ethiopia, Eygpt and Sudan are all affected by the dam, and due to regional politics, their is little co-operation between the states on this issue. Egypt are worried about the reduction in control of their primary fresh water supply.
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