Nairobi — The controversial 1929 agreement on the usage of Nile waters will soon become obsolete.

A new legal framework on the exploitation of the world's longest river is being formulated to replace the old agreement which has been a source of tension among countries that benefit from the river.

A team to review the law has already been formed and has 12 months to come up with a new treaty.

"After extensive consultation, we have agreed to achieve sustainable socio-economic development through the equitable utilisation of the common Nile Basin water resources," said Water Resources minister Martha Karua. She read a joint statement signed by ministers from the 10 countries after a meeting in Nairobi.

Earlier, Vice President Moody Awori had said that the Nile did not belong to any one country but was a shared resource which could enhance economic develop in the 10 states.

Rwanda's minister for Land, Water and Natural Resources, Prof Munyanganizi Bikoro said his country fully supported the initiative. He described the 1929 treaty was a "colonial relic" that needed to be changed.

Egyptian Minister Dr Mohamoud Abu-Zeid denied allegations that his country was a stumbling block in the negotiations.

"The Nile has too much potential which can benefit all the riparian states and Egypt has no problem with other countries using the water," said Dr Abu-Zeid.

Under the 1929 accord between Egypt and Britain, Egypt can veto the use of Lake Victoria water it feels threatens the levels in the Nile. Tanzania rejected the treaty after independence.

The statement was signed by ministers from Kenya, Burundi, Rwanda, Democratic Republic of Congo, Sudan, Tanzania, Uganda, Egypt, Ethiopia and Eritrea.

Ms Karua said had given Sh9.9 billion ($130 million) to implement the joint project.

The ministers denied reports that there were sharp differences among them on the use of the waters.