Republic of Djibouti

Upgrade of the Power Generation and Transmission Systems in the City of Djibouti
Loan No: 551 Interest Rate: 2.5 %
Beneficiary: Electricité de Djibouti (EDD) Grace Period: 6 years
Project Cost: KD 40.5 million Maturity: 25 years
Amount of Loan: KD 9.0 million Repayment: 39 semi-annual installments
Date of Board Approval: 2011-05-22 First Installment: 6 years following the first disbursement
Date of Loan Agreement: 2011-05-22 Date of Loan Effectiveness: -

Objectives:

The project aims at satisfying the increasing demand for electricity in the city of Djibouti by upgrading the generating and transmission systems in the city in order to increase their power and efficiency. This will be accomplished through the construction of a diesel power plant in the “Jaban’as” area, close to the capital, and connecting the power plant to the transmission network.

Description:

The project, which is expected to be completed by the end of 2014, consists of the following main components:

  1. Civil Works for the Generating Station: This includes all civil works for the power generating station, namely the buildings, the equipment foundations, and all road works.
  2. Electromechanical and Electrical Works: They include the following:
    1. Electromechanical Works for the Generating Station: This includes the supply and installation of 5 to 7 diesel generating units running on heavy fuel oil and having a total rated power of 75 MW. The equipment to be supplied includes the engines, the generators, the circuit breakers, the 15 kV busbars, the fuel tanks, the water treatment system, along with the auxiliary equipment and spare parts.
    2. Electrical Works:This includes the supply and installation of 5 to 7 diesel generating units running on heavy fuel oil and having a total rated power of 75 MW. The equipment to be supplied includes the engines, the generators, the circuit breakers, the 15 kV busbars, the fuel tanks, the water treatment system, along with the auxiliary equipment and spare parts
    3. Digital Meters: This includes the supply and installation of around 40 thousand digital meters to cover all EDD consumers, which will enable EDD to increase its billing efficiency and reduce the commercial losses in its network.
  3. Consultancy Services and Institutional Support: This includes consultancy services needed for the revision and completion of engineering documents, specifications and designs, along with project supervision, equipment witness testing, and the purchase of power system analysis software to be used by EDD for planning the expansion of the transmission and distribution networks.

Financing:

The Arab Fund’s loan covers about 22% of the total project cost. It is expected that various Arab and regional financial institutions will provide loans to cover about 70% of the total project cost. The Government of Djibouti will cover the remaining cost of the project and any additional cost that may arise.