DJIBOUTI WATER SUPPLY AND WASTEWATER TREATMENT

Promoter – Financial Intermediary

OFFICE NATIONAL DE L'EAU ET DE L'ASSAINISSEMENT DE DJIBOUTI

Location

• Djibouti

Description

Project to improve drinking water and sanitation services for the capital city of Djibouti through the construction of Doraleh Desalination Plant, and Doraleh, Balbala and Douda wastewater treatment plants.

Additionality and Impact

The project is part of a 10-year long EU support to significantly improve drinking water and sanitation access in the capital city of Djibouti. In line with EU and EIB policy objectives of environmental protection and climate action, the project helps mitigate market failures, as it is expected to generate positive externalities in the form of improved public health and environmental benefits notably by preventing further depletion of groundwater aquifers and through increased adaptation to climate change.

The project is embedded in the long-term strategy of the Government of Djibouti "Vision Djibouti 2035". The project is aligned with EU cooperation in the water sector under Priority 1 (Ville propre et résiliente) of the Joint Programming Document of the EU and EU Member States 2021-2027 and it will contribute to the Team Europe Initiative Djibouti propre et prospère à l'horizon 2027. It will also contribute to Sustainable Development Goal (SDGs) 6 "Clean Water and Sanitation" and SDG13 - "Climate Action".

The EIB's involvement will complement earlier and ongoing interventions of the EU in the water sector in Djibouti, facilitating the full financing and implementation of the project. The EIB technical advice will be particularly relevant for the preparation and implementation of the sanitation component, bringing it in line with international and EIB standards.

Objectives

The main objective of the project is to improve drinking water and sanitation services in the capital city of Djibouti (in terms of coverage and quality of the services). The project is also expected to contribute to improved public health and environmental benefits notably by preventing further depletion of groundwater aquifers and through increased adaptation to climate change. Finally, the project will create economic opportunities for the population and local businesses, thus contributing to development of the capital and surrounding areas. The EIB contribution will complement earlier and ongoing interventions of the EU and AFD in the water sector in Djibouti.

Comments

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Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 79 million

Total cost (Approximate amount)

EUR 178 million

Environmental aspects

Inside the EU, the project components would be categorised under Annex II of the EIA Directive 2011/92/EU amended by 2014/52/EU and therefore would be subject to environmental screening to define if an environmental impact assessment (EIA) would be required according to the relevant competent authority. EIAs for wastewater treatment plant components are required by national legislation. This is the first operation of the EIB in the water sector in Djibouti and it will contribute to the country's adaptation to climate change conditions, in a water stressed area. The results and recommendations of the EIA carried out in 2012 for the desalination plant followed best environmental and social practices and are still considered to be acceptable to the Bank. The Bank will assess the environmental and social aspects of the project during appraisal to ensure adherence to its social standards. Climate change aspects will be further examined during appraisal.

Procurement

The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Signed - 7/07/2023