Multinational - Ethiopia–Djibouti Transport Corridor Project Phase I


Project Summary

Approval Date 19 Jul 2019
Signature Date 25 Aug 2019
Planned Completion Date 31 Dec 2026
Sovereign / Non-Sovereign Sovereign
Sector Transport
DAC Sector Code 21023
Environmental Category 2
Commitment U.A 3,800,000
Status Implementation

Project General Description

The Ethiopia – Djibouti Transport Corridor Project Phase I will improve logistics and road access to sea ports to Ethiopia and deepen regional integration in the economy, trade and transport. The project consists of the construction of 60km of the new 126 km 4-lane expressway from Adama to Awash, design of one-stop-border post and sections of road, policy, sector reforms in Djibouti transport sector and capacity building. The expressway is along the southern export-import route through Dewele/Galile border point which is a shorter route to the sea by 120km compared to the existing northern route passing through Galafi border point. The project will cost UA 181.60 million and is financed by an ADF Grant of UA 69.64 million to Ethiopia and ADF Grant of UA 3.80 million to Djibouti and a GoE contribution of UA 108.16 million. The road works will take 4.5 years whilst the various Djibouti consultancy services will take up to 3 years to complete. In supporting this project, the Bank is adding value to Ethiopia’s export / import sector and will contribute to Djibouti’s growth through the ports by facilitating trade and transport and linking economic growth poles, in line with Bank’s aspirations for a transformed Africa.

Project Objectives

The transport sector goal is to contribute towards the socio-economic development by providing an efficient and effective transport system in Ethiopia and Djibouti. The proposed project aims to improve road infrastructure and institutional capacity whose impact will be to deepen regional integration through increased trade within the Horn of Africa region.

Beneficiaries

The project beneficiaries will include businesses people within the agriculture, trade and import-export sectors, including 3000 truckers who drive the 900 km between Djibouti and Addis Ababa and youths who will receive over 95% of the job opportunities during the construction. Djibouti will benefit from increased trade, port revenues and jobs as well as bankable projects, improved capacity in management of the transport sector.

Participating Organization

Funding
African Development Fund
Implementing
PIU-Ministry of Finance in Djibouti

Information

IATI identifier 46002-P-Z1-DB0-227
Last Update 29 Jul 2021

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Geographic Location

Country Multinational