Djibouti-Addis Road Corridor (WB-P174300)

  • Djibouti
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
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
May 31, 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.
Government of Djibouti
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 70.00 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)
$ 70.00 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.
Primary Source

Original disclosure @ WB website

Updated in EWS Mar 4, 2021

Disclosed by Bank Dec 11, 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 proposed project objective is to improve the quality and safety of transport and transit along the Djiboutian section of the Djibouti – Addis Ababa road corridor.

The project has three components:

  1. Component 1: Improvement of road and border infrastructure (estimated costs: USD 60 million). A technical study funded by PPIAF (P172970, ongoing), undertook a comparative assessment at prefeasibility level of 3 road corridors between Djibouti and Addis-Ababa, namely (i) the northern corridor, along the RN1 214 km, currently the most used by trucks (2,116 heavy veh/day) under rehabilitation with support from other donors, (ii) the southern corridor along the RN1, RN5 and RN19 via Dewele, of 104 km and (iii) a greenfield corridor of 89 km along the railway line. Preliminary results, based on traffic forecast and rehabilitation cost estimates, showed at that the second corridor has the highest economic returns. Final results are expected in November 2020.

  2. Component 2: Development of a Smart and Safe corridor (estimated cost: USD 5 million):
    This Component will include the following activities:
    1. Infrastructure and systems to ensure fluidity of freight movement on the corridor:
    2. Support the development of a safe and inclusive corridor:
  3. Component 3: Establishment of performance-based contract for operation and maintenance of the corridor and operational support (estimated costs: USD 5 million). This component will support finding a mechanism for sustainable operation and maintenance of the corridor exploring private sector investment possibilities (as it could complement the sources of financing). Various options will be analyzed and the decision on the type of contract will rely on (i) the level to which the country is ready to involve the private sector and (ii) the results from the financial models and market sounding currently ongoing in the PPIAF funded study to understand the market interest and capacity depending on the proposed scope. This important feedback will allow to define if the Rehabilitation Works should be included in the contract or be carried out in advance under a separate “standard” civil works contract. This decision also depends on the obligations and risks allocation that the GoD considers relevant to transfer to a private partner, in a cost-effective manner. The private contractor should be entitled to implement an axle load control system, based on the legislation and in cooperation with local police authorities, and should contribute to the other component 2 objectives that would be included in its scope of work.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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World Bank:
Anne Cecile Sophie Souhaid
Senior Transport Specialist

The Republic of Djibouti
Ali Gadileh
Directeur des financements extérieurs

Implementing Agency:
Abdi Ibrahim
Directeur General 


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