Republic of Djibouti

Completion of the Rehabilitation and Reinforcement of the
Drinking Water Distribution Network in Djibouti

Loan No.:


Interest Rate:

2.0 %


Office National de líEau et de líAssainissement de Djibouti (ONEAD)

Grace Period:

7 years

Project Cost:

KD 23.0 million


30 years

Amount of Loan:

KD 20.0 million


47 semi-annual installments

Date of Loan Agreement:


First Installment:

7 years following the first disbursement

Date of Effectiveness:



The project aims at covering the current deficit in meeting the demand for drinking water in the city of Djibouti, and facing the future needs of the population until the year 2030, through the completion of the works related to the rehabilitation of the water distribution network to reduce the loss of water, and the reinforcement and expansion of the network to accommodate the additional quantities of water that will be provided to the city by the project of water transfer from Ethiopia and the project of sea water desalination. In addition, the project will allow for an increase in the number of domestic connections, and the development and improvement of the drinking water services provided by ONEAD, as well as contribute to the preservation of water and the rationalization of its use, and improve the living and health conditions of the residents.


The project, which is expected to be completed by the end of 2021, includes laying main and secondary pipelines in the water distribution network, installing a number of domestic connections, rehabilitating and constructing water tanks, increasing the installed capacity of 2 water pumping stations, and rehabilitating several wells. In addition, the project includes the technical services necessary to prepare the studies and designs, assistance in bid analysis, project supervision and provision of institutional support to ONEAD. The project consists of the following components:

  1. Rehabilitation and Reinforcement of the Water Distribution Network: This includes the construction of three water tanks with capacities ranging between about 1200 and 5000 m3, the rehabilitation of 2 existing water tanks, each with a capacity of about 1500 m3, the replacement and laying of main and secondary pipelines with a total length of about 200 km and diameters ranging between 63 and 700 mm, and the replacement of about 30 thousand existing domestic connections. The works also include an increase in the installed capacity of the water pumping station in Balbala by about 400 m3/hour, and that of the pumping station in Ambouli by about 900 m3/hour, in addition to the construction of a workshop for the maintenance of pumps and the repair of water meters, the construction of a laboratory to control water quality, and the acquisition of the necessary equipment for the operation and maintenance of the project.
  2. Expansion of the Water Distribution Network: This includes laying about 50 km of pipelines with diameters ranging between 63 and 90 mm, and installing about 15 thousand new domestic connections.
  3. Technical Services: This includes the consultancy services necessary to prepare the project studies, designs and tender documents, assistance in tender evaluation and bid analysis, project supervision, as well as conducting any additional studies necessary for the achievement of the projectís objectives.
  4. Institutional Support: This includes the use of the services of consultancy firms and experts to develop ONEADís administrative and financial systems, and improve its performance, in addition to the acquisition of the necessary equipment and information systems, and the training of employees on the management of project implementation, operation and maintenance.


The Arab Fund's loan covers about 87% of the total project cost. The Government of Djibouti will cover the remaining cost of the project and any additional cost that may arise.

Copyright © 2008-2022 AFESD All Rights Reserved.