Photo credit: REUTERS/Tiksa Negeri.
"One step forward to Ethiopia", the country's foreign affairs spokesman, Meles Alem, told The Associated Press.
It has been agreed that regular tripartite meetings will be conducted between the three countries' ministers, and a tripartite fund will be established, named the "Tripartite Infrastructure Fund", the details for which will be discussed at a high officials' meeting in Cairo in July.
The Tuesday night agreement was reached upon the conclusion of their second tripartite high-level ministerial meeting in the Ethiopian capital, Addis Ababa.More news: Motorola Moto 1S announced - a G6 version with ZUI
The Renaissance dam is expected to become Africa's largest hydropower plant with a production of 6,000 megawatts.
Ethiopia, Sudan and Egypt agreed to conduct an independent study in order to dispel worries on water flow impact by the Grand Ethiopian Renaissance Dam (GERD) now being built on the Nile.
According to a document obtained by the AP, the scientific group will discuss and develop "various scenarios related to the filling and operation rules in accordance with the principle of equitable and reasonable utilization of shared water resources while taking all appropriate measures to prevent the causing of significant harm".
As the construction of the $5 billion dam comes close to completion, Egypt has been expressing fears that water flowing downstream would be reduced.More news: Diane Keaton Tried to Make Out With Jimmy Kimmel
Indeed, the Nile is a vital lifeline for Egypt, providing the country with both irrigation and drinking water.
Worldwide agreements signed in 1929 and 1959, Egypt is guaranteed to 87% of the Nile waters.
Egyptian President Abdel Fattah al-Sissi on Wednesday welcomed a "breakthrough" in the talks, saying he received assurances that "Egypt's share will not be affected".More news: Sean Murray Announces XBox One Release Date