Multinational - Ethiopia-Djibouti Electricity Interconnection (Djibouti)

Project Summary

Approval Date 13 Dec 2004
Signature Date 22 Jul 2005
Planned Completion Date 31 Dec 2010
Last Disbursement Planned Date 30 Sep 2011
Sovereign / Non-Sovereign Sovereign
Sector Power
DAC Sector Code 23630
Commitment U.A 17,185,463.29
Status Completion

Project General Description

The Ethiopia-Djibouti Power Interconnection Project (component of Djibouti) deals with the interconnection of electricity grids between Ethiopia and Djibouti with the aim of making possible power trade between the two countries and allow the sharing of cheap hydropower resources of Ethiopia. As such, the project should help reduce the cost of energy and contribute to poverty reduction by encouraging industrial and commercial development that should create jobs in both countries. The project would (i) immediately provide clean, cheap and reliable energy to the population of twelve (12) towns in Ethiopia and 36-72 percent of yearly energy supply to Djibouti during its life and (ii) enable further electrification of the surrounding areas at little incremental cost, thus improving the quality of life of the population and advancing socio-economic development. It should also develop human capacity and improve financial management and control systems to contribute to the efficient and sustained operations of power utilities in Djibouti and Ethiopia. The project comprises the following components: (A) Development of Power Transmission Network (construction of transmission lines and substations); (B) Electrification of Border Towns; (C) Project Supervision and Management; and (D) Institutional Support to EdD (Electricité de Djibouti) and Ethiopian Electric Power Corporation (EEPCO).

Project Objectives

The common sector goal for Ethiopia and Djibouti is to improve the environment for job creation and poverty reduction through provision of modern, affordable energy services. The primary objective of the project is to establish power trade between Ethiopia and Djibouti and to improve electricity access at affordable prices.


The main beneficiaries of the project are electricity consumers in Ethiopia and Djibouti, suppliers, enterprises, rural and urban populations as well as industries and shopping centers in both countries.

Participating Organization

African Development Fund
Electricité de Djibouti (EdD)


IATI identifier 46002-P-Z1-FA0-010
Last Update 26 Jan 2023


Contact Details

Geographic Location

Country Multinational
Coordinates Location Name
11.58901 43.14503 Djibouti
9 39.5 Ethiopia