Republic of Djibouti

Social Housing - Phase II (Supplementary Loan)

Loan No.:


Interest Rate:

2.5 %


Djibouti Real Estate Company and Ministry of Housing, Urban Planning, and Environment

Grace Period:

5 years

Project Cost:

KD 7.44 million


25 years

Amount of Loan:

KD 1.0 million


41 semi-annual installments

Date of Loan Agreement:


First Installment:

5 years following the first disbursement

Date of Effectiveness:



The project aims at meeting the increasing demand for housing units for citizens in the lower income category, in order to improve their living conditions. The project represents the second phase of a plan to build about three thousand housing units in the Balbala area.


The project includes the construction of approximately 700 housing units in Djibouti City, and the provision of basic services. The project includes the following main components:

  1. Land Expropriation and Basic Services: This includes primary leveling, paving of main roads, and provision of basic services through the extension of the main water and electricity lines to the site.
  2. Construction of Houses: This includes the construction of approximately 700 housing units, with the build up area of each unit ranging between 70 m2 and 90 m2. It also includes the installation of water, electrical and sewage networks.
  3. Sewage Utilities: This includes the installation of the main wastewater collector, and the construction of two pumping stations.
  4. Consultancy Services: This includes the preparation of the design and tender documents, and the supervision of project implementation.


The two Arab Fund's loans, loan No. 456/2003 and the supplementary loan, cover about 94% of the total project cost. The Government of Djibouti will cover the remaining cost of the project and any additional cost that may arise.

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