Power Plant and Transmission Network Expansion Project
On Monday 27/04/2020, a loan agreement was signed, in Kuwait, between the Government of Djibouti and the Arab Fund, in the amount of KD 30 Million to contribute to the financing of a project for the construction of the Damerjog Power Plant and the expansion and development of the transmission network (first phase) in Djibouti. The loan agreement was signed, on behalf of the Government of Djibouti, by H.E. Mr. Ilyas Dawaleh, Minister of Economy and Finance in charge of Industry. H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/ Chairman of the Board of Directors of the Arab Fund, signed the agreements on behalf of the Arab Fund.
The project aims at meeting the increasing demand for electric power and energy in the city of Djibouti and includes the completion of the first phase of a new 50 MW power plant in Damerjog, that will run on natural gas and heavy fuel oil, as well as the expansion and development of the 230 kV and 63 kV electricity transmission network through the addition of two substations, the construction of overhead lines and the laying of underground cables.
The project includes the following main components:
The Arab Fund loan will carry interest of 2% per annum, and will be repayable over 30 years including a 7 year grace period.
Eléctricité de Djibouti is the beneficiary of the loan.
With the signing of this loan, the Arab Fund’s total contribution to financing projects in Djibouti amounts to KD 151 Million.