Republic of Djibouti

Damerjog Power Plant and Transmission Network Expansion and Development Project (Phase I)
Loan No: 676 Interest Rate: 2.0 %
Beneficiary: Electricité De Djibouti Grace Period: 7 years
Project Cost: KD 49.1 million Maturity: 30 years
Amount of Loan: KD 30.0 million Repayment: 47 semi-annual installments
Date of Board Approval: 2020-04-27 First Installment: 7 years following the first disbursement
Date of Loan Agreement: 2020-04-27 Date of Loan Effectiveness: -

Objectives:

The project aims at satisfying the increasing demand for electric power and energy in the City of Djibouti by constructing the first phase of a new 50 MW power station at Damerjog, which runs on natural gas and heavy fuel oil, and expanding and developing the 230 kV and 63 kV transmission network by adding two new substations, expanding two existing substations and installing aerial power lines and laying power cables.

Description:

The project, which is expected o be completed by the end of 2023, includes the construction of a dual fuel diesel power generation station and associated works and accessories, the expansion and development of the transmission network, the measurements, protection, control, and communication systems, and consulting services. The project includes the following main components:

  1. Damerjog Power Generation Station:This includes the construction of Phase I of a diesel powered generation station with installed capacity of 50MW which operates on natural gas and heavy fuel oil, and all civil, mechanical and electrical works for the project’s Phases I and II.
  2. Expansion and Development of the Transmission Network:This includes the construction of two new substations, the expansion and development of two existing substations, the installation of aerial power lines, and the laying of power cables, in addition to civil and electrical works and accessories. This includes the following components:
    1. Nagad Substation:This includes the procurement and installation of equipment and the construction of a new 100 MVA air-insulated substation operating on 230/63/20 kV, as well as civil and electrical works, and systems for measurement, protection, control, and communications, and their accessories.
    2. Damerjog Substation:This includes the procurement and installation of equipment and the construction of a new 100 MVA air-insulated substation operating on 230/63/20 kV, as well as civil and electrical works, and systems for measurement, protection, control and communications, and their accessories.
    3. Boulaos Substation:Expansion of the existing 63/20 kV substation, and the development of the measurement, protection, control and communications systems.
    4. Palmeraie Substation:Expansion of the existing 63/20 kV substation, and the development of the measurement, protection, control and communications systems.
    5. Aerial Lines:Procurement and construction of 230 kV double circuit aerial lines to connect the Damerjog substation to the two substations at Nagad, and Nagad Train Station.
    6. Underground Cable:Procurement and laying of 63 kV underground power cables between the Nagad substation and the substations at Boulaos and Palmeraie.
  3. Consulting Services:This includes consulting services needed to review and complete the project’s specifications and design, tender documents development and bids evaluation, assistance during contracts negotiations, supervision of the project’s implementation, participation in factory tests, and follow-up of operation performance and maintenance work during the guarantee period.

Financing:

The Arab Fund’s loan covers about 61% of the total project cost. It is expected that the Saudi Fund for Development and the Kuwaiti Fund for Arab Economic Development contribute to the financing of the project with loans equivalent to about KD 19.1 million (about 39%). The government of Djibouti will cover the remaining cost of the project and any additional cost that may arise.