Republic of Djibouti

Social Housing in the City of Djibouti

Loan No.:


Interest Rate:

2.5 %


Housing Fund

Grace Period:

5 years

Project Cost:

KD 6.6 million


25 years

Amount of Loan:

KD 6.0 million


41 semi-annual installments

Date of Loan Agreement:


First Installment:

5 years following the first disbursement

Date of Effectiveness:



The project aims at contributing to the alleviation of the housing crisis in the city of Djibouti, meeting the increasing demand for housing for low-income citizens, and improving their social conditions by providing them with adequate housing. The project, which is part of an integrated program to build about 5,000 housing units west of the capital, includes the construction of about 500 housing units.


The project, which is expected to be completed in the first quarter of 2018, consists of the expropriation of about 120 thousand m2 of land and its preparation, the construction of about 500 housing units for low-income citizens, and the provision of basic services such as roads, and water, electricity and sewage networks. The project also includes the provision of the necessary consultancy services to prepare the studies, designs, detailed plans and tender documents, as well as supervision of works. The project consists of the following components:

  1. Land Expropriation and Preparation: This includes the expropriation of land necessary for the execution of the project and its preparation, and the provision of basic services to the project site such as electricity, drinking water and sewerage.
  2. Construction of Housing Units: This includes all civil and construction works necessary for the construction of about 500 housing units, with the build-up area of each unit ranging between 84 and 104 m2. The total build-up area of the housing units and general facilities is about 50 thousand m2.
  3. Basic Services: This includes the construction of internal roads, and the laying of electricity, water and sewerage networks.
  4. Consultancy Services: This includes the necessary consultancy services to prepare the studies, designs, plans and bid documents for the project, assistance for tendering, bid analysis and award, and supervision of works.


The Arab Fund's loan covers about 91% 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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