The Transboundary Analysis component comprises an integrated, cross-border analysis of the watershed system in order to identify the main watershed characteristics and watershed challenges in each of the Sub-basins and the opportunities and benefits of cooperation in watershed management. This Report examines the Abbay-Blue Nile Sub-basin. It provides an understanding of the basin-wide bio-physical and socio-economic situation, examines the basin-wide watershed management issues, examines the land policy issues, looks at the opportunities for in-country and trans-boundary benefits from cooperative basin-wide watershed management, and examines a number of opportunities for cooperative watershed management and other cooperative activities.