Second Djibouti-Ethiopia Power System Interconnection Project (WB-P173763)

Countries
  • Djibouti
  • Ethiopia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jan 20, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Republic of Djibouti - Ministry of Economy and Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Energy
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 45.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ WB website

Updated in EWS Aug 14, 2024

Disclosed by Bank May 28, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank documents, the Project objective is to enhance reliable and affordable electricity trade between Ethiopia and Djibouti.

The project has three components:

  1. Transmission line from Galafi to Nagad and Nagad substation extension (preliminary estimated cost: US$72 million). The following subcomponents would be financed:

    1. Galafi-Nagad transmission line (cost: US$68 million, IDA credit: US$43.5 million). Construction of a new double circuit 230 kV transmission line from Galafi to Nagad of 190 km. Each circuit would have a rated power of 200 MVA. Galafi is on the Djiboutian side of the country’s border with Ethiopia.

    2. Nagad substation extension (cost: US$4.0 million, IDA credit: US$0 million). The scope of work at the proposed Nagad substation is to install a 170 m long double 230kV busbar (designed for operation with eight outgoing bays at 230kV, 50 Hz, 40 kA/3 sec, 2000A) at the existing substation site and fit two complete new outgoing 3150 A / 31,5 kA 230kV transmission line switch bays (comprising CTs, Surge arrestor, Circuit breaker, line isolator each fitted with a 10 MVAR fixed reactor and associated CT/Isolation facilities designed to compensate for the capacitance in the 292 km 230kV transmission line. In addition, the busbars will be fitted with a 25MVAR switchable reactor along with associated circuit breaker equipment as for the line switchbays.

  2. Component 2: Technical Assistance, Capacity Building and Project Management (cost: US$3 million, IDA credit: US$1.5 million). The reinforcement of the connection of Combolcha to Semera is mandatory to avoid the risk of isolating the new interconnection from Ethiopia. This component will finance the cost of the project’s implementation and oversight. Moreover, this subcomponent will include citizen engagement activities providing a voice to the project beneficiaries, including women and youth, and therefore involve bottom-up communication approaches, such as community meetings and beneficiary outreach in remote locations.

  3. Contingency Emergency Response Component (cost: US$0 million, IDA credit: US$0 million). Providing support upon occurrence of an Energy Sector Emergency through: (a) the carrying out of Emergency Recovery and Rehabilitation Activities; and/or (b) technical assistance to support EDD in its response to an Energy Sector Emergency. Funds could then be reallocated to help finance activities of Component 3, if necessary.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

World Bank:
Emmanuel Py, Lucine Flor Lominy
Senior Energy Specialist

Borrower:
Republic of Djibouti - Ministry of Economy and Finance

Implementing Agency:
Electricité de Djibouti
Djama Ali Guelleh
Director
djama-agza@edd-dj.com 

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: https://www.inspectionpanel.org.

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