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Power Power
Suite Suite
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Africa Africa
600 600
States States
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USAID USAID
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the the
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DISCLAIMER DISCLAIMER
NOVEMBER NOVEMBER
SECTOR SECTOR
REPORT REPORT
DJIBOUTI DJIBOUTI
United United
author's author's
States States
views views
Agency Agency
expressed expressed
2014 2014
for for
International International
ASSESSMENT ASSESSMENT
in in
this this
POWER POWER
publication publication
Development Development
do do
not not
necessarily necessarily
or or
the the
United United
reflect reflect
States States
the the
views views of of
Djibouti Djibouti
TABLE TABLE
APPENDIX APPENDIX
REFERENCES REFERENCES
5 5
4 4
3 3
1 1
2 2
EXECUTIVE EXECUTIVE
Power Power
5.12 5.12
5.10 5.10
5.9 5.9
5.11 5.11
5.7 5.7
5.6 5.6
5.8 5.8
5.4 5.4
5.3 5.3
5.5 5.5
5.1 5.1 4.6 4.6
5.2 5.2
NEXT NEXT
4.4 4.4
4.5 4.5
4.2 4.2
4.3 4.3
4.1 4.1
RENEWABLE RENEWABLE
3.5 3.5
3.4 3.4
3.3 3.3
3.2 3.2
3.1 3.1
POWER POWER
2.3 2.3
2.2 2.2
2.1 2.1
COUNTRY COUNTRY
INTRODUCTION INTRODUCTION
Sector Sector
AVAILABILITY AVAILABILITY
TECHNICAL TECHNICAL
USAID USAID
TRAINING TRAINING
IMPROVING IMPROVING
CAPACITY CAPACITY
MANAGEMENT MANAGEMENT
PUBLIC-PRIVATE PUBLIC-PRIVATE
NATIONAL NATIONAL
IMPROVING IMPROVING
4.5.2 4.5.2
FIALE FIALE
4.5.1 4.5.1
4.5.3 4.5.3
LEGAL LEGAL
WIND WIND
4.3.4 4.3.4
FINANCING FINANCING
4.3.2 4.3.2
4.3.1 4.3.1
OTHER OTHER
4.3.3 4.3.3
4.2.1 4.2.1
SOLAR SOLAR
3.5.4 3.5.4 GEOTHERMAL GEOTHERMAL
3.5.2 3.5.2
3.5.1 3.5.1
FUTURE FUTURE
3.5.3 3.5.3
3.3.8 3.3.8
3.3.10 3.3.10
ELECTRICITY ELECTRICITY
3.3.9 3.3.9 ELECTRICITY ELECTRICITY
3.3.7 3.3.7
3.3.6 3.3.6
3.3.5 3.3.5
3.3.4 3.3.4
3.3.3 3.3.3
3.3.2 3.3.2
3.3.1 3.3.1
ORGANIZATIONAL ORGANIZATIONAL LEGAL LEGAL
2.3.2 2.3.2
2.3.1 2.3.1
REVELANCE REVELANCE
2.3.3 2.3.3
GEOGRAPHY GEOGRAPHY
OPPORTUNITIES OPPORTUNITIES ECONOMY ECONOMY
1: 1:
STEPS STEPS
OF OF
SUMMARY SUMMARY
ENERGIE ENERGIE
SECTOR SECTOR
......
CALDERA CALDERA
Assessment Assessment
ENERGY ENERGY
AND AND
AND AND
ENERGY ENERGY
CONTRIBUTION CONTRIBUTION
RENEWABLE RENEWABLE
Off-grid Off-grid
Off-grid Off-grid
Tax Tax
BACKGROUND BACKGROUND
Small-scale Small-scale
Technical-dust Technical-dust
Subsidies-
COST COST
Feasibility Feasibility
Generation Generation TRANSMISSION TRANSMISSION
Interconnection Interconnection
Electricity Electricity
ADDS ADDS
Ministry Ministry
Development Development
CERD CERD Private Private
ODDEG ODDEG
ADME ADME
SIHD SIHD
Electricite Electricite
Ministere Ministere
Vision Vision
Ongoing Ongoing
Openness Openness
OF OF
......
IN IN
STRATEGY STRATEGY
BUILDING BUILDING
ENERGY ENERGY
CONTENTS CONTENTS
REGULATORY REGULATORY
BUSINESS BUSINESS
RENEWABLE RENEWABLE
EXPERTISE EXPERTISE
INSTUTIONAL INSTUTIONAL
......
ENERGY ENERGY
PPP PPP
REGULATORY REGULATORY
lssues lssues
OF OF
OF OF
SUPPLY SUPPLY DEMAND DEMAND
AND AND
......
OF OF
......
......
......
......
issues issues
......
DE DE
PROFILE PROFILE
PROJECT PROJECT
2035 2035
......
DATA DATA
ENERGY ENERGY
......
......
sector sector
wind wind
PV Electricity Electricity PV
PARTNERSHIPS PARTNERSHIPS
of of
FOR FOR
......
REGIONALLY REGIONALLY
& &
STRUCTURE STRUCTURE
and and
SOCIO-POLITICAL SOCIO-POLITICAL
de de
Tariffs ...... Tariffs ......
issues issues
OF OF
DJIBOUTI DJIBOUTI
de de
......
REGULATION REGULATION
breakeven breakeven
Finance Finance ENERGY ENERGY
Report Report
to to
SECTORS SECTORS
......
geothermal geothermal
AND AND
......
ENVIRONMENT ENVIRONMENT
GROWTH GROWTH
......
......
electricity electricity
L'energie L'energie ......
......
......
......
......
EDD EDD
foreign foreign
Djibouti Djibouti
Pipeline Pipeline
Partners Partners
......
ENERGY ENERGY
FRAMEWORK FRAMEWORK
TO TO
FRAMEWORK FRAMEWORK
SPECIFIC SPECIFIC
with with
POWER POWER
......
storms storms
FRAMEWORK FRAMEWORK
......
......
& &
DJIBOUTI'S DJIBOUTI'S
......
OPTIONS OPTIONS
......
Distribution Distribution
......
INTERCONNECTED INTERCONNECTED
......
Ethiopia Ethiopia
......
......
investment investment
TARIFFS TARIFFS
......
......
......
......
......
of of
......
......
Charge Charge
MASTER MASTER
power power
and and
TASKS TASKS
projects projects
......
LANDSCAPE LANDSCAPE
......
......
......
O&M O&M
DEVELOPMENT DEVELOPMENT
......
......
generation generation
......
des des
......
......
PLAN PLAN
......
......
challenges challenges
Ressources Ressources
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POWER POWER
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......
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SYSTEM SYSTEM
......
Naturelles Naturelles
......
......
.40 .40
.40 .40
.40 .40
43 43
44 44
39 39
39 39
38 38
35 35 38 38
36 36
35 35
34 34
33 33 34 34
34 34
32 32
32 32
32 32 33 33
30 30
29 29
30 30
28 28
26 26 29 29
22 22
21 21
21 21 25 25
20 20
20 20
19 19
17 17
18 18
18 18
16 16
16 16
16 16
16 16
15 15
15 15
15 15
15 15
13 13
13 13
13 13
11 11
11 11
11 11
.4 .4
.4 .4
8 8
7 7
9 9
3 3 5 5
8 8 1 1
MERN MERN
MOF MOF Djibouti Djibouti
JICA JICA
kWh kWh
kVA kVA
Km Km
HFO HFO
IPP IPP
GWh GWh
GDP GDP FDI FDI
GDC GDC
GEF GEF
EU-Africa EU-Africa
EUEIPDF EUEIPDF
EIB EIB
EU EU
EDD EDD
DIS DIS
CERD CERD
CPS CPS
AfDB AfDB
CCD CCD
AFD AFD
AEEP AEEP
ADDS ADDS
ADME ADME
ADF ADF
Acronyms/ Acronyms/
ACRONYMS ACRONYMS
ED ED
Power Power
ITF ITF
Abbreviations Abbreviations
Sector Sector
Assessment Assessment
AND AND
Report Report
ABBREVIATIONS ABBREVIATIONS
j j
Kilowatt Kilowatt l'Energie l'Energie
Kilovolt Kilovolt
Ministry Ministry
Ministry Ministry
Japan Japan
Kilometer Kilometer
Independent Independent
Heavy Heavy
Gigawatt Gigawatt
Gross Gross Foreign Foreign
Geothermal Geothermal
Global Global
European European
European European Facility Facility
European European
European European
Djibouti Djibouti
of of
Demographiques) Demographiques)
Djibouti Djibouti
Directorate Directorate
d'Etudes d'Etudes
de de
Djibouti Djibouti
Country Country
African African
Africa-EU Africa-EU
Developpement) Developpement)
French French
Djiboutienne Djiboutienne
African African
Djibouti Djibouti
Djibouti Djibouti
Dijiboutienne Dijiboutienne
Definition Definition
Djibouti Djibouti
Djibouti) Djibouti)
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International International
Domestic Domestic
Fuel Fuel
Environment Environment
Development Development
Direct Direct
Development Development
Ampere Ampere
Development Development
of of
of of
Electricity Electricity
Partnership Partnership
Hours Hours
Center Center
Chamber Chamber
Agency Agency Social Social
et et
hours hours
et et
Investment Investment Union Union
Union Union
Union Union
Energy Energy
Energy Energy
Finance Finance
Oil Oil
des des
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Development Development
(Direction (Direction
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for for
de de
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Recherches Recherches
Investments Investments
Ressources Ressources
Development Development
for for
Product Product
Statistics Statistics
Africa Africa
Energy Energy
la la
for for
Developpement Developpement
of of
Partnership Partnership
and and
Cooperation Cooperation
Producer Producer
Studies Studies
Company Company
Maltrise Maltrise
Facility Facility
Strategy Strategy
Energy Energy
Commerce Commerce
Bank Bank
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Funds Funds
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la la
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Research Research
Demographic Demographic
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Social) Social)
Partnership Partnership
World World
Trust Trust
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Fran\:aise Fran\:aise
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Dialogue Dialogue
Commerce Commerce
Studies Studies
Etudes Etudes
de de
--
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Djibouti Djibouti
WB WB
UNEP UNEP
RRA RRA
USAID USAID RECP RECP
QPI QPI PPP PPP
PPIAF PPIAF
PV PV
PPA PPA
PATRP PATRP
OPEC-OIFD OPEC-OIFD
NARUC NARUC
OD OD
MW MW
Acronyms/ Acronyms/
DEG DEG
Power Power
Abbreviations Abbreviations
Sector Sector
Assessment Assessment
Report Report
The The
Africa-EU Africa-EU
United United
US US
Renewable Renewable
Qatar Qatar Private Private Public
Photo Photo
Power Power
Public-Private Public-Private
for for Fund
USAID USAID
Djiboutien Djiboutien Organization Organization
National National Geothermique) Geothermique)
Definition Definition Office Office
Megawatts Megawatts Commissioners Commissioners
Agency Agency
World World
vol vol
Petroleum Petroleum
Purchase Purchase
of of
Nations Nations
Power Power
taics taics
Association Association
International International
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Bank Bank
pour pour
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for for
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Africa Africa
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Environment Environment
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Agreement Agreement
le le
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Developpement Developpement
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Transactions Transactions
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Exporting Exporting
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Programme Programme
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The The Since Since lack lack precious precious wind wind generated generated supply supply of of meet meet Faced Faced and and country country investment investment economic economic Djibouti's Djibouti's EXECUTIVE EXECUTIVE addition addition both both its its access access social social country country the the of of identified identified indigenous indigenous is is for for resource resource the the 2011, 2011, the the with with Power Power mix mix performance performance with with cases, cases, infrastructure. infrastructure. access access by by 243 243 support support lags lags financial financial on-grid on-grid of of Government Government will will in in energy energy to to to to of of constraints constraints opportunities opportunities using using AfDB, AfDB, and and growth permitted permitted development development strategic strategic to to climate climate load load the the has has formidable formidable and and institutional institutional renewable renewable GWh GWh tariffs tariffs this this an an water water energy, excessive excessive financial financial supply supply is is behind behind Sector Sector the the a a from from promote promote being being constraints constraints renewable renewable endowed endowed as as interconnector interconnector been been target target port port by by imported imported of of report: report: renewable renewable and and security security national national a a provides provides per per resources resources ranging ranging and and 2019. 2019. the the an an Assessment Assessment key key while while location location of of on on activity. activity. especially especially energy energy set. set. off-grid off-grid still still of of At At year, year, and and of of economic economic development. development. dependence dependence donor donor energy energy strong, strong, the the an an technical, technical, human human are are objective objective is is and and 87-100% 87-100% with with Djibouti Djibouti present, present, While While and and energy energy fossil fossil remain. remain. strategy strategy due due offering offering increased increased technical technical and and severely severely energy energy between between the the SUMMARY SUMMARY tremendous, tremendous, increasing increasing energy energy trade trade that that as as regulatory regulatory community community Even Even applications; applications; significant significant to to functional institutions institutions functional in in to to between between telecommunication telecommunication country country development development in in acute Africa's Africa's Report Report fuel. fuel. this this increase increase perspective, perspective, would would the the its its can can approximately approximately of of institutional institutional level level The The is is sector sector share share and and lower lower on on though though resources. resources. hampered hampered dependence on on dependence USD USD challenges challenges appetite appetite arrangement arrangement promoting promoting actively its its country's country's The The The The contribute contribute imported imported to to following following law law electricity with with over over Visions Visions Ethiopia Ethiopia framework framework otherwise otherwise rural rural gateway gateway of of this this and and renewable renewable up up two two tariffs. tariffs. has has electrification electrification 0.06-0.07/kWh. 0.06-0.07/kWh. high high the the renewables renewables however, however, to to low low the the indicators, indicators, report report for for harness harness areas. areas. already already the the traditional traditional If If by by and and economic economic energy energy 70% 70% cost cost facing facing 2020 2020 electricity. electricity. period period to to The The properly properly and and private private cost cost 50% 50% are are country country the the to to is is be be financial financial services. services. improve improve also also and and imported imported the the energy energy of of some some Djibouti, Djibouti, and and increase increase lack lack until until used used energy energy launched launched the the and and that that of of mix mix the the the the in in 2012- Red Red fluctuations fluctuations ranking ranking rates rates informs informs the the sector sector pillars pillars the the growth growth country's country's regulatory regulatory may may 2035. 2035. the the of of energy energy The The are are 2010 2010 to to of of has has As As resources resources use use the the barriers, barriers, sea sea population population affordable affordable address address electricity, electricity, core core and and currently currently in in be be participation: participation: a a of of it it offers offers 164 about about has has number number sector. sector. was was economic economic areas areas ample ample 1 instruments, instruments, in in Tahlc Tahlc h h accelerated accelerated Djibouti's Djibouti's Wind Wind Solar Solar pressing pressing Geothermal Geothermal Power Power Power Power Grid Grid Power Power Installed Installed Electricity Electricity Electrification Electrification Electricity Electricity including including out out fully fully important important a a oil oil and and being being enjoys enjoys requiring requiring number number cost cost high The The I: I: losses losses of of potential potential of of potential potential renewable renewable prices prices PcnH•r PcnH•r import import retail retail imports imports reliable reliable dependent dependent initiatives initiatives capacity capacity 187 187 growth growth Government Government supply supply demand demand developed, developed, social social access access potential potential tariffs tariffs sta!istics sta!istics geothermal, geothermal, energy energy tariffs tariffs in in rates rates of of countries. countries. has has opportunities opportunities in in resulting strengthening, strengthening, of of recent recent critical critical power power are are development development for for energy energy fossil fossil of of to to to to on on sector sector Djihouti Djihouti foreign foreign years years electricity, electricity, 56.65 56.65 $ $ SSMW SSMW $ $ 6SOMW 6SOMW 16% 16% 421.73 421.73 154.97 154.97 395.7 395.7 125.96MW 125.96MW ~so% ~so% improve improve the the years, years, electricity electricity 6-7 6-7 30 30 of of and and fuel fuel legislative, legislative, The The solar solar resources; resources; cent/KWh cent/KWh following following cent/KWh cent/KWh Djibouti Djibouti conducive conducive (Source (Source MW MW GWh GWh struggles struggles consumed consumed GWh GWh GWh GWh for for low low and and economic economic direct direct the the as as and and the the :\EEPJ :\EEPJ level level weak weak with with yet yet to to Specific Specific Djibouti Djibouti • • • • • • Other Other • • • • Specific Specific • • • • • • • • • • The The strengthened. strengthened. technical technical The The encourage encourage The The master master capacities capacities substantial substantial Associated Associated terms terms to to There There fiscal fiscal implications implications a a identify identify Finance. Finance. The The advisory advisory procurement procurement other other and and enforcement enforcement A A authority authority A A modern modern transmission transmission For For A A PPP PPP also also sector sector The The law law using using and and more more recommendations recommendations enhance enhance Power Power regulatory regulatory Private Private geothermal geothermal capacity capacity technical technical long-term long-term short short to to the the enforcement enforcement can can creation creation changes changes current current be be legal legal of of commitments commitments is is ministries ministries the the the the realistic realistic investors investors plan plan what what a a needed needed reducing reducing power power principles principles and and Sector Sector be be This This support support and and and and need need will will conservation; conservation; Geothermal Geothermal mining mining investments investments the the framework framework with with Public Public made made of of is is of of 33% 33% financial financial EDD EDD credit credit of of and and of of in in and and long long risks risks and and energy energy company's company's unit unit be be agency agency essential essential those those sector, sector, Assessment Assessment to to Djibouti Djibouti law law to to financial financial the the the the a a utility utility and and and and important important losses, losses, in in implementation implementation assess assess policies; policies; or or PPP PPP distribution distribution law law tax tax complement complement financial financial Participation Participation term term staff staff would would of of associated associated and and evaluation evaluation tax tax clarifying clarifying areas areas enhancements enhancements if if agencies. agencies. enhancements enhancements other other strategy strategy on on ratemaking, ratemaking, to to is is specific specific aspects aspects or or Project Project management management a a for for coordinating coordinating code code tariff tariff actions actions and and for for to to separate separate the the likely likely improving improving issue issue imports imports department department overall overall serve serve model, model, such such system system stakeholders stakeholders be be Report Report Djibouti Djibouti to to MERN MERN project project viability viability will will expectations; expectations; an an companies. companies. of of with with which which the the define define a a In In of of regulations regulations to to as as a a for for as as concession concession active active managing managing PPP PPP is is line line geothermal geothermal provide provide (PPP) (PPP) performance. performance. the the be be financial financial to to standards standards rights rights modernization, modernization, the the a a the the USA USA prohibitive prohibitive collections collections on on development development to to technical technical policies, policies, center center better better developed developed to to is is likely likely for for the the unit unit with with legal legal conduct conduct of of be be the the transmission transmission develop develop currently currently player player about about legal legal to to the the are are the the rules rules put put more more Training Training should should governing governing project. project. determine determine international international of of the the modeling, modeling, and and cost cost needs needs for for a a national national electricity electricity provided provided law law development development in in knowledge knowledge staff staff framework framework the the regionally regionally in in and and of of may may resource for for and and It It incentives incentives with with all all regulatory regulatory clean, clean, place place of of in in the the cost cost costs costs is is is is also also government's government's as as to to renewable renewable PPP PPP the the the the will will will will preparation, preparation, the the required; required; important important and and support support regional regional well well be be utility, utility, concessions concessions the the to to of of risk risk in in reliable reliable be be legal legal Fiale Fiale for for sector sector overall overall need need transactions. transactions. evaluated evaluated need need best best attract attract local local service service the the total total and and considered considered interconnected interconnected as as for for analysis, analysis, framework; framework; the the is is of of norms norms Calder Calder for for Energie Energie last last from from to to practices, practices, need need needed needed to to energy. energy. power power performance performance technical technical private private must must distribution distribution costs costs to to Fiale Fiale and and financial financial familiarize familiarize private private be be building building commitment commitment together together surveys, surveys, section section recognize recognize for for to to to to the the affordable affordable provided provided that that be be geothermal geothermal and and of of Caldera Caldera pool pool determine determine to to be be de de located located sector sector geothermal geothermal A A World World envisaged. envisaged. the the investment investment it it reassure reassure will will resources resources developed. developed. Djibouti Djibouti enforce enforce revised revised of of management, management, new new shall shall with with the the of of power power of of system system standards standards themselves themselves this this that that affect affect investment; investment; East East in in geothermal geothermal in in the the Bank, Bank, implementation implementation to to energy energy generation generation an an be be topics topics if if the the report. report. project project Djibouti Djibouti Commercial Commercial PPA PPA potential potential planning, planning, project, project, as as Africa Africa system. system. fields fields modifications modifications able able on on overarching overarching The The must must all all and and Ministry Ministry The The AfDB AfDB an an PPPs PPPs and and systems systems IPPs IPPs transactions. transactions. such such to to regulatory regulatory as as offtaker, offtaker, with with the the is is be be and and viability viability must must project project will will provide provide government government plants. plants. well well indicators indicators the the private private and and for for examined examined costs costs as as key key IPPs IPPs of of need need need need and and the the and and Code Code be be the the as as AFD. AFD. power power in in to to using using of of will will to to the the to to A A 2 2 This This This This focusing focusing This This Section Section allowed allowed opportunities opportunities investment. investment. challenges challenges developers' developers' sector sector energy energy and and regulatory regulatory this this overview overview This This section section technical technical Djibouti Djibouti sector sector team team placed placed low-cost low-cost and and country country country, country, Djibouti Djibouti 1 1 lower lower 00003. 00003. assistance. assistance. Power Power megawatts megawatts In In to to installation installation Djibouti's Djibouti's borders, borders, partner partner 1 1 USAID USAID 20 20 2013, 2013, Jay Jay sector. sector. accelerate accelerate report report report report assessment assessment report report INTRODUCTION INTRODUCTION comprised comprised million million tariffs tariffs of of in in Africa Africa on on supply supply Power Power of of for for 4 4 Dick Dick in in for for combined combined United United (EDD) (EDD) the the Djibouti. Djibouti. on on energy. energy. Djibouti, Djibouti, risk risk of of of of how how this this strategic strategic as as unlocking unlocking and and Section Section the the of of aims aims is is was was in in The The numerous numerous perceptions perceptions the the the the the the United United and and well well (geothermal (geothermal people people Sector Sector and and factors factors comprised comprised Transactions Transactions clean, clean, Africa. report. report. and and the the United United PPPs PPPs opportunities opportunities power power produced produced socio-political socio-political States States report report and and of of potential potential of of to to reliability reliability to to as as achievement achievement The The discussing discussing the the Georges Georges with with 5 5 the the location location provide provide Assessment Assessment States States efficient efficient other other the the and and and and technical technical of of involved involved its its 1 1 States. States. meetings meetings status status focuses focuses Agency Agency sector sector energy energy report report the the legal legal of of substantial substantial its its of of commercial commercial the the following following areas areas expert). expert). officials officials of of the the commitment commitment and and in in five five an an report report Tadros Tadros in in Build-Operate-Transfer Build-Operate-Transfer of of to to America America was was electricity generation generation electricity and and also also its its supply. supply. Djibouti Djibouti sector sector a a capacities capacities overview overview key key in in on on landscape landscape for for the the Reforms Reforms of of for for meet meet Report Report with with sections. sections. conflict-prone conflict-prone institutional institutional planning, planning, developing institutional institutional provided provided renewable renewable describes describes social social highlights highlights During During International International risks risks to to country's country's the the (renewable (renewable indigenous indigenous a a the the of of the the entities entities discuss discuss Special Special two-week two-week announced announced intervention intervention is is the the in in to to of of Ministry Ministry Program Program and and objectives objectives of of Section Section host host and and this this IPPs, IPPs, peaceful, peaceful, the the to to Republic Republic the the the the electricity electricity opportunities opportunities energy energy economic economic in in and and opportunities opportunities the the attention attention government government to to barriers barriers mission, mission, energy energy region region renewable renewable energy energy sector, sector, Sub-Saharan Sub-Saharan necessary necessary Development Development mission mission with with Camp Camp economy economy 2 2 organizational organizational of of (PATRP), (PATRP), Power Power capacity. capacity. of of of of and and resources resources Energy Energy moderate moderate project project of of a a the the - increased increased sector sector to to engineering engineering with with and and was was development development Lemonnier, Lemonnier, focus focus generation, generation, a a with with contribution contribution Djibouti Djibouti Africa Africa to to two-day two-day increased increased report, report, resources resources energy steps steps officials, officials, where where implementing implementing of of for for Djibouti Djibouti given given a a finance finance and and funded funded Though Though Yemen, Yemen, of of Africa Africa on on focus focus the the (USAID) (USAID) as as views, views, the the Djibouti Djibouti to to - energy energy framework, framework, geothermal geothermal was was Natural Natural Country Country well well an an the the country. country. to to training training strengthen strengthen involvements involvements expert), expert), transmission transmission private private the the on on highlighting highlighting by by under under initiative initiative in in geothermal geothermal structure structure of of goals, goals, Djibouti Djibouti Eritrea, Eritrea, involvement involvement undertaken undertaken makes makes as as encouraging encouraging October October only only adding adding USAID USAID security, security, wishes wishes and and ongoing ongoing Resources Resources successful successful provides provides Background, on on Section Section contract contract sector sector Jacques Jacques through through through targeted targeted through permanent permanent energy. energy. energy energy it it identify identify Somalia, Somalia, the the Public-Private Public-Private affect affect to to is is more more a a to to are are 2014 2014 and and not not and and provide provide of of unique unique the the electrification electrification as as legal, legal, investment investment and and assist assist of of 3 3 donors. donors. no. no. described described private private part part (MERN), (MERN), access access increased Cook Cook demand demand the the a a legal, legal, The The than than renewable renewable profiles profiles PPPs. PPPs. distribution distribution USAID USAID capacity capacity by by pipeline pipeline Power Power and and AID-623-C-14- institutional, institutional, U.S. U.S. lenders' lenders' and and this this of of a a access access mission mission 10,000 10,000 (legal (legal Tetra Tetra financial financial Ethiopia Ethiopia the the Emphasis Emphasis sector sector strategic strategic strategic strategic Partnerships Partnerships military military as as technical technical the the Africa Africa in in can can in in Energie Energie gaps, gaps, projects projects USAID USAID well well energy energy rates, rates, the the to to Tech Tech this this expert) expert) energy energy an an and and sector. sector. facilitate facilitate also also power power energy energy focus focus and and at at as as latter latter to to was was de de its its in in 3 3 4 4 2 2 3 3 areas, areas, Djibouti Djibouti The The Djibouti Djibouti capital, capital, relative relative and and Although Although in in According According percent percent reduced reduced poverty poverty moderate moderate services, services, (2013). (2013). country. country. Djibouti Djibouti Djibouti Djibouti residents residents Ethiopian Ethiopian against against in in Ismail Ismail in in voting voting election election Issas, Issas, In In experienced experienced controls controls between between 370 370 southeast. southeast. 906,112 Djibouti's Djibouti's economic economic 2.1 2.1 2 2 The The 2013 2013 The The same same the parliament. parliament. parliamentary parliamentary 1977, 1977, relative relative statistics statistics World World World World kilometers kilometers World World COUNTRY COUNTRY and and which which Power Power Omar Omar GEOGRAPHY GEOGRAPHY law law seven seven in in the the Women Women poverty poverty is is poverty poverty 2 was was Yet, Yet, was was had had the the is is the the educational educational the the adhere adhere Bank Bank Bank Bank economic economic (2013) (2013) poverty poverty higher higher 2002 2002 origin. origin. widespread widespread Gazetteer Gazetteer growth growth The The to to strategic strategic a a based based election election period. period. poverty poverty access access ruling ruling a a Djiboutian Djiboutian multi-ethnic multi-ethnic officially officially a a ranked ranked held held Guelleh, Guelleh, Sector Sector on on DISED's DISED's its its out out Group Group (2014) (2014) The The civil civil per per remainder remainder of of to to line. and and or or unemployment unemployment Human Human to to elections elections is is among among Arabic Arabic on on of of figures figures in in and and 41.9 41.9 maritime maritime capita capita estimate estimate opposition opposition shared shared Islam. Islam. DISED DISED party party barded barded to to war war Assessment Assessment -CPS -CPS results.3 results.3 growth growth location location between between 4 4 ten ten girls girls 2011, 2011, 196th 196th proportional proportional and and the the and and to to development. development. marked marked latest latest percent percent with with Djiboutian Djiboutian people people Development Development young young and and run run and and income income employment employment face face are are country; country; Red Red of of prosperity. prosperity. worsening worsening in in country country following following by by figures figures over over coastlines. coastlines. AND AND the the in in for for devastating devastating BACKGROUND BACKGROUND February February welfare welfare French French difficult difficult the the 1996 1996 Eritrea Eritrea contested contested particular particular sea. sea. the the in in the the voted voted Report Report people, people, rates rates a a border border the the opposition opposition of of representation. representation. 2012, 2012, third third establishment establishment its its and and suggest suggest Horn Horn in in fall fall about about SOCIO-POLITICAL SOCIO-POLITICAL last last This This constitute constitute a a report, report, are are for for in in in in the the The The two two to to Index Index opportunities, opportunities, 2013. 2013. change change 2002, 2002, Djibouti Djibouti below below rising rising term. term. is is the the the the the the while while decade, decade, challenges challenges pinpoint pinpoint of of effects effects independence independence inconsistent inconsistent world world small small formed formed US$1,430 US$1,430 main main report report that that Africa Africa face face north, north, results results resulted resulted the the lags lags According According absolute absolute In In above above the the relative relative in in the the poverty poverty ethnic ethnic country country with with November November forms forms incidence incidence on on of of indicating indicating suggests suggests of of For For the the due due substantially substantially absolute absolute by by Ethiopia Ethiopia is is country's country's and and the the the the the the given given 70 70 in in in in its its unemployment unemployment the the constitution constitution and and the the ranging ranging to to poverty poverty groups groups poverty poverty a a current current economy. economy. Republic Republic relative relative 2011, 2011, has has from from percent percent levels levels important important most of of to to data data bridge bridge Red Red first first political political deep-rooted deep-rooted that that of of just just published published poverty poverty 2012, 2012, boycotted boycotted that that in in official official two the the poverty poverty limitations, limitations, Sea Sea time time ranking ranking are are from from the the vary vary after after has has drought-the drought-the has has behind, behind, 23,200 23,200 for for political political between between recent recent French French of of LANDSCAPE LANDSCAPE and and that that A A the the the the west west representation. representation. declined declined since since grown grown line, line, young young widely widely 40 40 dramatic dramatic Djibouti. Djibouti. power power in in National National results, results, Issa Issa in in the the allowed allowed parliamentary parliamentary it it growth growth gender gender sq sq percent percent and and ranking ranking rural rural asset asset Djibouti Djibouti as as and and Territory Territory stability. stability. 2003, 2003, the the languages. languages. available available Gulf Gulf km km of of from from people people across across a a sharing sharing south, south, only only Middle Middle nine nine lower-middle-income lower-middle-income areas areas Somali Somali worst worst increases increases the the offering offering with with From From inequalities inequalities has has the the Assembly Assembly of of to to the the 74 74 164th 164th opposition opposition slightly slightly remains remains 59 59 out out Aden Aden under under The The regions. regions. and and of of incumbent incumbent not not being being a a opposition opposition percent percent evidence evidence agreement agreement in in 1991 1991 East East About About population population and and sessions sessions percent. percent. the the of of 60 60 out out opportunities opportunities Somalia Somalia translated translated last last in in at at the the ten ten Afars Afars higher higher the the years. years. and and from from to to approved approved both both of of high high the the in in Outside Outside presidential presidential to to 94% 94% age age under under 1994, 1994, won won Afar Afar 187 187 indicates indicates access access 79.4 79.4 In In Africa Africa president, president, in in east, east, participated participated in in 42.2 42.2 absolute absolute and and despite despite in in of of of of than than 2007, 2007, protest protest of of into into countries countries 2000 2000 10 10 of of the the the the Djibouti Djibouti percent percent 30. 30. the the with with the the a a for for to to seats seats and and urban urban new new that that 4 4 6 6 5 5 4.5 4.5 Djibouti Djibouti estimated estimated Japan, Japan, The The Following Following telecommunications, telecommunications, located located Developing Developing billion, billion, macroeconomic macroeconomic The The expected expected Owing Owing to to In In The The creating creating position position in in million million principal principal complex, complex, seaport's seaport's dominated dominated The The backbone backbone Djibouti Djibouti port port has has the the percent percent 58 to to 2.2 2.2 of of 17.3%, 17.3%, has has Over Over nearly nearly With but but The The Source Source accommodate accommodate the the 2012, 2012, basic basic employment. employment. percent percent Gulf Gulf a a their their heightened heightened World World strategic strategic facilities facilities pillars pillars activity activity country's country's 71 71 harsh harsh range range and and ECONOMY ECONOMY Power Power of of to to with with in in and and inhabitants. inhabitants. about about infrastructure. infrastructure. as as Djibouti Djibouti of of is is percent percent data data activity activity potential potential to to maritime maritime Bank Bank its its which which at at of of the the a a the the a a of of by by of of mostly mostly during during Aden Aden climate, climate, grow grow agriculture agriculture potential potential of of US US decade decade a a 40 40 and and Oji Oji proximity proximity critical critical : : location location Sector Sector of of country country the the economic economic CIA- real real the the Group Group North North most most 15,000 15,000 US$65 US$65 social social percent percent $1.459 $1.459 bouti bouti stability stability the the The The has has of of rents rents 1.5 1.5 consists consists country's country's rapidly rapidly and and began began service service 2009-2012. 2009-2012. to to growth growth barren, barren, port port The The the the Assessment Assessment The The CPS CPS of of Port Port important important few few a a transshipment transshipment million million Atlantic Atlantic construction, construction, serve serve alarmingly alarmingly 's 's trade trade its its of of to to largely largely direct direct tensions tensions from from million million World World negative negative to to population population at at for for billion economy, economy, of of the the growth growth port port support support Djibouti Djibouti of of precedents precedents status status in in in in sector, sector, of of the the 3%. 3%. with with rate rate Djiboutians Djiboutians as as with with imports imports Djibouti Djibouti recent recent population. population. foreign foreign parallel parallel construction construction Factbook Factbook twenty twenty and and imports imports contributes contributes Persian Persian Treaty Treaty unskilled unskilled an an 6 to to economic economic The The of of since since • • as as little little Report Report and and and and Approximately Approximately South South high high engine engine indirect indirect anti-piracy anti-piracy which constitutes constitutes which US$90 US$90 5% 5% has has free free founded founded year, year, of of and and in in hub GDP GDP to to countries' countries' foot foot low low with with in in revenue revenue serve serve development development 2011. 2011. to to Organization Organization Djibouti Djibouti annually. annually. Gulf, Gulf, unemployment unemployment ensured ensured and and trade trade Sudan Sudan Africa. Africa. under under tourism tourism and and labor labor It It with with of of growth, growth, container container million million jobs jobs (purchasing (purchasing substantially substantially assets assets of of the the is is the the exports exports as as growth growth on on Djibouti Djibouti exports exports the the estimated estimated zone zone and and expanding expanding are are its its a a force, force, the the could could Horn Horn (10 (10 the the a a lives lives military military key key The The sectors, sectors, are are Doraleh Doraleh steady steady 75 75 annual annual per per anti-terrorism anti-terrorism significant significant Djibouti Djibouti age age in in country's country's percent percent in in from from and and units units (NATO), (NATO), around around its its refueling refueling percent percent from from further further of of and and in in GDP GDP the the year year hosts hosts the the of of power power has has strategic strategic to to Africa. Africa. urban urban that that poverty poverty inflow inflow bases. bases. gross gross which which Horn Horn landlocked landlocked economy economy 15, 15, limited limited annually. annually. Container Container agricultural agricultural the the neighboring neighboring (20 (20 contributed contributed based based has has of of military military 79 79 about about expand port port expand of of the the inflows inflows remarkable remarkable parity) parity) as as national national the the areas. areas. and and to to domestic domestic .7% .7% of of Transport Transport seen seen the the A A of of have have efforts efforts reduction reduction location location country's country's well well natural natural 25 25 on on Africa. Africa. actively actively $396 $396 foreign foreign one-third one-third transshipment transshipment GDP GDP of of of of Trade Trade Terminal, Terminal, bases bases significant significant The The the the percent percent African African experienced experienced in in of of as as its its the the and and economy, economy, to to Ethiopia Ethiopia million million in in 2013 2013 foreign foreign official official other other product product resources. resources. is is main main capital capital activities. activities. deep-water deep-water at at endemic endemic and and GDP, GDP, through through the the for for aid aid employed employed industrial industrial is is population population attributed attributed the the live live of of severely severely countries. countries. was was logistics logistics France, France, and and region. region. foreign foreign trading trading its its government government project, project, mouth mouth improvement improvement followed followed direct direct exchange exchange Djibouti-Ville Djibouti-Ville serving serving in in improving improving generating generating center, center, third third estimated estimated strong strong military military Djibouti's Djibouti's widespread widespread slums, slums, Djibouti's Djibouti's sectors. sectors. population) state-of-the-art state-of-the-art to to restrained restrained the the forces forces is is partner, partner, investment investment of of sector sector seaport, seaport, About About it it the the relatively relatively its its and and growth growth the the by by United United has has rate rate with with assistance. assistance. market market at at revenues) revenues) at at direct direct industry industry The The are are that that Red Red port port is is in in the the an an economy economy US US 85% 85% was was poverty poverty Ethiopia. Ethiopia. is is little little to to the the 5 to to in in the the States, States, average average country country are are capacity capacity . . home home Sear Sear is is (FOi), (FOi), secure secure $2.505 $2.505 young; young; revenues revenues due due of of recent recent of of port port access access at at 90 90 and and the the and and and and lack lack to to is is its its of of 5 5 The The Djibouti Djibouti The The address address energy energy The The World World capital. capital. size size financing, financing, markets, markets, challenges. challenges. and and civil civil average average years. years. S200M S200M S400M S400M S600M S600M S800M S800M 51.2 51.2 $1.4 $1.4 51 51 so so following following strengthening strengthening 1!s 1!s B B B B B B following following of of economic economic service, service, ------ Inflation Inflation Power Power Bank. Bank. Djibouti's Djibouti's is is 19'e.6 19'e.6 1986 1988 1988 1986 some some of of making making a a as as 3.7 3.7 critical critical rn81 rn81 Yet Yet - a a Exports Exports GDP GDP Population Population Exchange Exchange Foreign-exchange Foreign-exchange Consumer Consumer Imports Imports GDP GDP Current-account Current-account Real Real ...... Sector Sector These These implementing implementing well well Actual. Actual. of of --·---· --·---· chart chart chart chart growth growth percent percent 1~•sa 1~•sa is is this this GDP GDP (USS (USS at at the the it it economy economy expected expected market market as as of of public public of of 1939 1939 barrier barrier more more b b Assessment Assessment Figure Figure figures figures provides provides goods goods significant significant growth growth rate rate growth(%) growth(%) shows shows (m) (m) goods goods bn) bn) Economist Economist price price reforms reforms 1990 1990 1!:i'!:-o 1!:i'!:-o is is in in (av) (av) prices prices Table Table infiation infiation balance balance further further vulnerable vulnerable fob fob 2: 2: expenditure expenditure 2012 2012 fob fob 19'91 19'91 to to reserves reserves Dfr:USS Dfr:USS GDP GDP the the project project to to limits limits (USS (USS a a pattern pattern (IJSS (IJSS Intelligence Intelligence (Dfr (Dfr the the annual annual in in 1992 1992 pension pension 2: 2: remain remain (av;%) (av;%) trend trend (USS (USS to to of of structural structural Report Report bn) bn) port port m) m) Economic Economic attributed attributed m) m) country's country's excl excl Djibouti Djibouti an an its its m) m) a a has has to to gold gold economic economic estimated estimated management. management. of of favorable favorable 1994 1994 Unit Unit ability ability fairly fairly institutions. institutions. reform reform external external gross gross not not estimates. estimates. (US$ (US$ based based statistics statistics obstacles obstacles future future to to alleviated alleviated low, low, to to 19% 19% m) m) fiscal fiscal on on domestic domestic that that diversify diversify 2.5 2.5 indicators. indicators. outlook outlook market market Official Official with with growth growth (Source: (Source: placed placed Budgetary Budgetary percent percent Fiscal Fiscal adjustment adjustment to to 1998 1998 high high the the its its Exchange Exchange downturns downturns product product for for production production and and sustained sustained the the adjustment adjustment EW-Country EW-Country Consumer Consumer in in 2000 2000 levels levels the the system system 2009 prosperity. prosperity. 2013. 2013. discipline discipline 450.7 450.7 219.6. 219.6. 177.7 177.7 186.5 186.5 -71.1 -71.1 Rate Rate 71.8 71.8 economy, economy, measures measures of of 0.8. 0.8. 5.0 5.0 1.0 1.0 1.8 1.8 8 8 of of 2002 2002 Djibouti Djibouti !Source: !Source: and and growth. growth. and and 2010 poverty poverty 373.9 373.9 200.6 200.6 on on 230.6 230.6 177.7 177.7 Index Index Price measures measures 78.7 78.7 50.5 50.5 Rl~port Rl~port 4.0 4.0 0.8 0.8 3.5 3.5 1.1 1.1 hampering hampering 8 8 a a and and increases increases aimed aimed provided provided 2004 2004 much much the the 2011 -171.8 -171.8 510.6 510.6 220.2 220.2 in in 228.3 228.3 177.7 177.7 Access Access debt debt 85.0 85.0 World World or or 2014) 2014) 0.8 0.8 4.5 4.5 5.1 5.1 1.2 1.2 US US 8 8 included included unemployment. unemployment. stronger stronger at at 2006 2006 (CPI) falling (CPI) falling management management 2012 -121.7 -121.7 dollars dollars Bank) Bank) 234.2 234.2 538.1 538.1 240.6 240.6 access access 177.7 177.7 its its 111.4 111.4 improving improving Djibouti Djibouti to to 4.8 4.8 0.9 0.9 3.8 3.8 1.4 1.4 reliance reliance 8 8 reliable, reliable, 2008 2008 410.5a 410.5a 2013b 2013b 177.?a 177.?a financial financial downsizing downsizing -123.2 -123.2 565.3 565.3 267.8 267.8 to to estimated estimated 114.1 114.1 3.5a 3.5a 09. 09. 5.5 5.5 1.5 1.5 external external is is public public on on able able from from were were affordable affordable 2010 2010 The The foreign foreign footing, footing, to to by by an an major major small small the the the the 2012 2012 6 6 Djibouti Djibouti 7 7 Djibouti Djibouti development development delivery, delivery, A A such such economic economic continue continue economic economic vulnerable vulnerable protection protection The The Effective Effective strengthening strengthening will will trade trade According According untapped untapped undersea undersea and and creating creating sustainable sustainable Economic Economic geographical geographical 2.3 2.3 The The wages wages For For country country External External estimated estimated monetary monetary million). million). the the which which compared compared The The percent percent The The the the Even Even disasters disasters causing causing production production Less Less recent recent fiscal fiscal World World deficit deficit reductions reductions development development increase increase purchasing purchasing as as Djiboutian Djiboutian current current could could than than though though OPPORTUNITIES OPPORTUNITIES Power Power were were are are high high in in jobs. jobs. has has report report to to it it limited limited debt debt telecommunications telecommunications Bank Bank implementation implementation After After marine marine such such and and growth deficit deficit growth growth authority. authority. of of to to expected expected to to growth growth 0.04 0.04 to to to to 2010. 2010. to to in in create create also also growth growth to to a a $1.30 $1.30 poverty poverty account account challenges challenges the the have have Sector Sector property property political political be be advantages advantages the the 13 13 the the Djibouti Djibouti the the However, However, Groupe Groupe low low is is small small as as in in by by a a percent percent power power franc franc be be highly highly high, high, access access percent percent access access relies relies Imports Imports resources resources World World marked marked merchandise merchandise floods floods business business and and the the of of obstacles obstacles the the increased increased has has inflation inflation per per a a will will Assessment Assessment to to energy energy Since Since CPS CPS and and quantities quantities source source deficit deficit cost cost is is poverty poverty ensuring ensuring World World influence. influence. rights rights at at accelerated accelerated person-hour person-hour parity parity runs runs have have on on sensitive sensitive to to of of of of depend depend the the on on Bank, Bank, sustainable sustainable for for and and 49.2 49.2 unemployment, unemployment, that that improvement improvement grew grew of of of of external external basic basic the the people people environment. environment. the the that that two two rate. rate. for for a a currency currency resources resources of of exports. exports. is is risen risen from from deeper deeper and and electricity. electricity. droughts. droughts. Bank Bank comparisons, comparisons, substantial substantial could could percent percent reduction reduction cables cables total total estimated estimated Djiboutian Djiboutian trade trade Djibouti Djibouti growth growth of of broad-based broad-based by by expanded expanded Report Report could could on on broad broad infrastructure, infrastructure, This This Weaknesses Weaknesses the the to to FOR FOR from from fruits fruits to to 2.7 2.7 in in 18 18 diversifying diversifying sources, sources, that that states in in land land external external institutional institutional support support growth growth balance. balance. basic basic enforcement enforcement This This on on recent recent of of percent percent has has of of percent percent 2009. 2009. support support of of fronts. fronts. for for Djibouti's Djibouti's 2.4 2.4 between between and and is is Djibouti. Djibouti. which which in in area area GDP GDP to to the the surplus surplus GROWTH GROWTH deficits deficits foreign foreign contributed contributed franc franc deficit deficit the the endowed endowed infrastructure infrastructure Djibouti, Djibouti, percent percent the the have widened widened have years, years, with with vegetables. vegetables. will will more more economic economic shocks shocks country country of of First, First, per per and and to to country. country. of of in in growth growth and and US US it it is is the the Djibouti Djibouti take take 2009 2009 reforms reforms GDP GDP not not 2013, 2013, a a in in could could has has in in It It year year investment investment of of merchandise merchandise diversified diversified flaws flaws pegged pegged and and growing growing dollar dollar of of high high Djibouti Djibouti economy economy its its such such is is with with human human anti-corruption anti-corruption the the be be and and been been advantage advantage GDP GDP in in to to issued issued and and in in on on services services development. development. the the and and draw draw possible possible Djibouti Djibouti in in country country natural natural artisanal artisanal the the opportunities opportunities providing is is 2012 2012 as as also also natural natural access access providing is is average, average, to to to to country country financed financed 2010, 2010, the the arable arable borrowing borrowing development development in in exchanged exchanged spikes spikes but but growing growing needs needs about about the the to to by by in in beyond beyond growth growth remains remains 2010 2010 legal legal to to trade trade balance, balance, develop develop still still disaster disaster Djibouti. Djibouti. of of the the U.S. U.S. without without will will assets assets the the imports imports 3 3 fishing fishing land. land. to to .I .I in in possesses possesses in in opportunities opportunities 13.1 13.1 in in to to and and Central Central limited limited measures. measures. deficit deficit balance balance Systemic Systemic percent percent food food need need in in interest interest take take dollar, dollar, nominal nominal the the critical critical part part costs costs 18.6 18.6 at at for for The The the the percent percent new new risks. risks. the the institutional institutional an an indicators indicators port port practically practically and and 76.03 76.03 steps steps and and take take to to to the the by by future. future. percent percent has has expansion expansion role role surplus surplus Bank Bank scant scant are are it it of of service service natural natural has has cheaper cheaper in in a a and and to to significant significant Second, Second, terms, terms, development development is is fuel fuel The The weaknesses weaknesses significant significant grown grown GDP GDP of of Djiboutian Djiboutian to to expected expected investment investment for for sustaining sustaining for for generally generally to to shown shown action action of of rainfalls rainfalls the the address address GDP GDP judiciary judiciary prices prices Longer-term, Longer-term, diminish diminish in in and and has has domestic domestic more more its its assets assets Djibouti, Djibouti, industries. industries. framework framework during during in in energy energy public public 2013 2013 of of gradually gradually there there entire entire been been 2013. 2013. social social in in a a to to FDI FDI energy energy to to and and diversified diversified large large vulnerabilities vulnerabilities infrastructure infrastructure 2013 2013 stable stable limit limit and and francs. francs. linger linger address address dynamic dynamic in in (USD (USD rise of of 2011-2013, 2011-2013, is is sector, sector, poverty poverty remains remains smaller smaller in in financing. financing. food food inflows, inflows, the the natural natural Financing Financing the the service service a a tourism, tourism, deficit; deficit; 7 Energy Energy general general crop crop from from will will and and need need supplies supplies • • and and in in country. country. country's country's 277 277 Mean Mean supply, supply, key key and and the the is is than than and and the the 5.1 5.1 to to on on of of as as of of 7 7 8 8 The The Djibouti Djibouti as as Guelleh Guelleh country country development development well well will will 2.3.2 2.3.2 Vision Vision The The five five gender gender framework. framework. Vision Vision 2.3.1 2.3.1 strengthen strengthen telecommunications telecommunications Text Text top top • • • • • • government government • • be be • • as as from from government's government's pillars pillars priorities priorities Power Power 2035 2035 dependent dependent the the 2035. 2035. inequality, inequality, OPENNESS OPENNESS Development Development East East which which national national food food first first infrastructure infrastructure cultural cultural platform platform environment; environment; Regional Regional through through A A Consolidation Consolidation adequate adequate supply supply plan plan growth, growth, and and consolidation consolidation governance; government; government; social social Good Good Peace Peace national national VISION VISION the the diversified diversified interconnection interconnection the the representing representing World World the the elected elected has has African African of of Sector Sector plans plans security security In In governance: governance: depends depends norm; norm; and and business-enabling business-enabling chain chain for for the the prevention prevention creativity; creativity; social social addition addition with with strategy strategy of of placed placed conscience; conscience; Bank Bank in in financing financing integration: integration: 2035 2035 entirely entirely supporting supporting and and national national long-term long-term his his Djibouti Djibouti national national Assessment Assessment the the in in Community Community justice justice services services improvements; improvements; strengthening strengthening the the based based and and and and defining defining and and (IGAD), (IGAD), TO TO of of government. government. actions; actions; 1999, 1999, objectives. objectives. on on subregion; subregion; energy energy the the of of private private to to human human nutrition strategy; strategy; nutrition competitive competitive on on regional regional fossil fossil FOREIGN FOREIGN and and with with on on strong strong and and strategy strategy international international unity: unity: its its territory; territory; country's country's publicly publicly system system has has and and renewable renewable approach approach the the capitalizing capitalizing as as youth, youth, and and three three access access the the developing developing Report Report repression repression Ethiopia's Ethiopia's fuels fuels well well Vision Vision sector sector capital: capital: named named a a (EAC); (EAC); environment environment social social institutions; institutions; commercial commercial As As Common Common economic economic of of implementing implementing defense defense civil civil The The modernization; modernization; that that cross-cutting cross-cutting strategic strategic and and welcomes welcomes as as and and the the for for and and part part 2035 2035 key key economy economy INVESTMENT INVESTMENT driving driving to to improvements improvements energy energy justice, justice, president president privatization, privatization, preserves preserves ensuring ensuring participation participation cooperation. cooperation. protecting protecting its its business business a a a a development development on on security security development development of of of of a a hydroelectric hydroelectric regional regional policy policy global global a a generation generation Market Market global global Djibouti's Djibouti's corruption; 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Ethiopia. and and grid grid This This For For sea sea population population has has are are Bank Bank power power Power Power induced induced ELECTRICITY ELECTRICITY an an blackouts blackouts networks networks for for the the a 5 5 a the the of of sources, sources, consumption consumption an an example example port, port, and and account account category enhanced enhanced more more African African figure figure citizen citizen and and Djibouti) Djibouti) .2 .2 the the implications implications offices. total total electricity electricity demand demand Sector Sector to to percent percent two two growth growth Parsons Parsons the the main main 37% 37% by by ------1---~------'----i----- conservative conservative the the Tadjoura Tadjoura Demand Demand Main Main Obock Obock has has electricity electricity has has of of and and ofTadjoura ofTadjoura preferably preferably among among isolated isolated average average in in large large airport, airport, Assessment Assessment 16 16 grid. grid. the the security security of of grid grid come come has has 2009 2009 access access As As yearly yearly high high would would Brinckerhoff, Brinckerhoff, over over grid grid of of grid grid the the (isolated) (isolated) imbalance imbalance projects projects are are developed developed a a electricity electricity Tahlc Tahlc is is the the (isol.) (isol.) the the on on dependency and and electricity electricity networks. networks. result result of of down down the the for for that that expected expected demand demand to to that that increase increase from from significantly significantly be of of DEMAND DEMAND than than lowest lowest over over and and free free past past electricity, electricity, 3: 3: 2010, 2010, 38%. 38%. electricity electricity Report Report covers covers 2009 2009 Djibouti Djibouti currently currently of of Electricity Electricity to to those those renewable renewable Obock Obock 575 575 between between zone zone few few just just the the its its has has consumers consumers represented represented I I ! ! : : I I The The to to between between in in The The produced produced own own Demand Demand kWh kWh only only high high years years (GWh) (GWh) grow grow electricity electricity increased increased of of under under and and 413.5 413.5 is is will will present present remaining remaining as as supplies. supplies. energy energy planned planned demand demand EDD EDD 5.2 5.2 supply supply expected expected means means Djibouti City City Djibouti military military tariffs tariffs and and higher. higher. the the 3 3 sources sources by by has has need need 9 9 13 13 is is of of 2012 2012 GWh GWh demand demand as as 421.73 421.73 70-75% 70-75% a a i i I I and and accelerated accelerated per per consumed consumed imports imports by by in in electricity electricity from from demand global global to to and and in in and and the the to to Work Work Djibouti Djibouti 25% 25% camps; camps; about about 73.8 73.8 while while to to capita capita produce produce Djibouti. Djibouti. (MW) (MW) 14 14 Peak Peak scale scale in in 0.7 0.7 1.2 1.2 utility utility demand demand unreliable unreliable increase increase GWh GWh GWh GWh 2011 2011 is is in in average average is is and and and and done done 75%, 75%, constrained constrained continuing continuing up up the the electricity electricity consumed consumed (Source: (Source: by by and and in in also also the the electricity, electricity, distributed distributed its its has has since since of of its its The The i i i i : : period period I I the the the the has has by by now now by by residential residential 1,745.1 1,745.1 and and country's country's outskirts. outskirts. the the of of efforts efforts Demand Demand power power considers considers one one (GWh) (GWh) Parsons Parsons large large world. world. EUEI EUEI been been 62.5% 62.5% 14.0 14.0 the the RR:\ RR:\ over over 5.9 5.9 demand demand even even until until of of 2011-2035, 2011-2035, consumption consumption to to by by by by interconnection interconnection supply, supply, industries, industries, to to random random Report) Report) import import the the but but in in 2770 2770 PDF PDF large large 2035 2035 high tariffs, tariffs, high 2025. 2025. with with and and In In The The power power generate generate Brinckerhoff Brinckerhoff consumers consumers three three 311.4 311.4 the the 1 1 highest highest it it could could Djibouti, Djibouti, 3.2 3.2 1.3 1.3 respectively respectively 49.5% suggests suggests is is kWh, kWh, country country shops, shops, this this additional additional (MW) (MW) power power Peak Peak the the The The and and not not different different demand. demand. while while not not ports ports increase increase of of private private more more tariffs tariffs allowed allowed makes makes forecasts forecasts scheduled scheduled public public about about high high including including only only for for be be suffers suffers with with that that demand demand (PB (PB industries industries power power demand demand served served systems, systems, the the Over Over in in connection connection sector sector the the around around the the it it 330 330 Ethiopia, Ethiopia, offices offices Power) Power) to to the the time-being time-being is is of of from from average average power power Power Power sell sell judged judged the the social social from from for for kWh kWh world. world. 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According According estimated estimated 3.5 3.5 The The excess excess demand demand World World 2011, 2011, happens happens Purchase Purchase ELECTRICITY ELECTRICITY Power Power represented represented INTERCONNECTION INTERCONNECTION decreased decreased the the energy energy energy: energy: The The ~~~--~~~~~~--~~~~~~~~~~~~~- Bank Bank annual annual for for generation. generation. to to a a country country 2011 2011 Year Year 2009 2009 2010 2010 Sector Sector new new a a following following the the (2014) (2014) to to of of study study Agreement Agreement sales sales the the with with correlate rate rate main main Ethiopia's Ethiopia's interconnector interconnector its its 395.7 395.7 Assessment Assessment with with hydro-based hydro-based by by during during of of power power The The Energy Energy grid grid As As 5 5 chart chart EUEI EUEI 100,00 100,00 150,00 150,00 200,00 200,00 400,00 400,00 250,00 250,00 300,00 300,00 450,00 450,00 350,00 350,00 Produced Produced GWh. GWh. low low 50,00 50,00 .7% .7% 232.00 232.00 340.16 340.16 372.03 372.03 supply supply a a (PPA), (PPA), could could SUPPLY SUPPLY Ethiopia's Ethiopia's production production interconnector interconnector consequence consequence cost cost describes describes over over (GWh) (GWh) PDF PDF Table Table Report Report Djibouti's Djibouti's WITH WITH Out Out Figure::: Figure::: between between generation generation not not of of energy energy 354,52 354,52 2009 2009 the the 180 180 and and 4: 4: of of electricity electricity be be Energy Energy last last to to dry dry ETHIOPIA ETHIOPIA the the the the Mercados Mercados by by supply supply Energy served served supply supply Addis Addis 300 300 of of high high 40 40 (GWh) (GWh) energy 37.64% 37.64% Non-supplied Non-supplied total total season's season's energy energy which which 2010 2010 of of random random supply supply years, years, GWh GWh 13.24 13.24 demand demand 14.36 14.36 is is Ethiopia Ethiopia 8.73 8.73 in in power power Ababa, Ababa, when when limited limited also also (2013), (2013), 2011. 2011. supply supply over over in in in in are are peak peak but but and and Djibouti Djibouti 2011 2011 Djibouti Djibouti allowed allowed the the supply, supply, summer summer to to more more Ethiopia Ethiopia the the is is scheduled scheduled by by hours, hours, from from production production be be resource resource in in 2010-2011 2010-2011 hydrological hydrological (Source: (Source: excess excess sold sold Imports Imports (Source: (Source: slowly slowly Ii! 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(GW/h) (GW/h) 17 17 conditions conditions demand. demand. demand demand (GW/h) (GW/h) cuts, cuts, 22.35 22.35 (GW/h) (GW/h) have have were were annually. annually. as as City, City, in in an an Under Under Total Total a a the the to to been been imported imported the the during result result estimated estimated In In 395.70 395.70 385.27 385.27 354.52 354.52 funded funded 37.24 37.24 and and non-serve non-serve 2011, 2011, (GWh) (GWh) growing growing the the The The of of the the MW MW terms terms from from by by the the total total availability availability PPA, PPA, 8.73 8.73 wet wet AfDB, AfDB, of of at at of of power power season season an an GWh GWh which which the the 18 18 The The The The available available There There The The resources. resources. thermal thermal power power Djibouti Djibouti towns towns 3.5.2 3.5.2 produced produced Ethiopia, Ethiopia, 63/20-kV 63/20-kV Adigala Adigala overhead overhead 'Subdivision 'Subdivision Aysha, Aysha, substation, substation, and and line line 202 202 Substation Substation The The 230-kV 230-kV new new 230-kV 230-kV contract contract to to on on The The km km depending depending view view season season that that hydroelectric hydroelectric 70 70 imports imports (175-mile) (175-mile) • • • • • • available available available available and and Development Development African 15 15 km km is is transmission transmission agreed agreed Adigala Adigala in in percent percent Tadjoura Tadjoura are are stations. stations. available. available. 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Dawa Dawa extension extension of of transformers, transformers, between between two two oil oil term term line line will will (50miles) (50miles) has has supply supply imports imports network network USD USD 12-MVA 12-MVA between between EDD, EDD, South South parallel parallel users users In In for for a a funding funding with with countries, countries, been been bay bay commence commence utility, utility, to to between between Adigala, Adigala, that Djibouti Djibouti that US US dependence on on dependence in in 'Subdivision 'Subdivision is is a a of of the the 0.06 0.06 the the and and destabilizing destabilizing another another approximately approximately at at Ethiopia Ethiopia the the the the to to $580 $580 243 243 from from (consisting (consisting a a 20/25-MV 20/25-MV in in to to is is signed signed comprising comprising has has main main in in to to Djibouti Djibouti rates rates power power border border transformer. transformer. supply supply associated associated Electricite Electricite and and more more Tadjoura Tadjoura fossil fossil country country the the to to Djibouti Djibouti the the GWh GWh including including Ethiopia Ethiopia the the been been Ethiopia Ethiopia Million Million amounting amounting construct construct existing existing power power performing performing ranging ranging 11 11 USD USD existing existing with with to to than than principal principal output output fuel fuel is is towns towns Djibouti Djibouti South', South', Ethiopian Ethiopian per per built. built. 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Ethiopia. tariffs tariffs of of Power Power diesel diesel and and 2014 2014 expected expected households households effective effective (108.2 (108.2 ELECTRICITY ELECTRICITY TRANSMISSION TRANSMISSION 300 300 of of to to away away planning, planning, km km In In transformer transformer Bank Bank Bank Bank tariffs tariffs those those plant plant transmission transmission system system Ali Ali in in meeting meeting be be distribution distribution as as 2013, 2013, tariffs tariffs Sector Sector I I plant plant i i 1··--·-·-··------··--··-----·-··-····-·····------.-----··------·-···-··--···-·-··-1 1··--·-·-··------··--··-----·-··-····-·····------.-----··------·-···-··--···-·-··-1 I I 1 1 i i iJ.~~lated iJ.~~lated in in tariff tariff demand demand I()t11J I()t11J - Group Group 1iltercanriectiorl·-·-i------·r·------r------1 1iltercanriectiorl·-·-i------·r·------r------1 MW) MW) The The a a Supply Supply Main Main Tahle Tahle Sabieh Sabieh of of mainly mainly from from sites. sites. 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MERN. MERN. in in load load capacity, capacity, capacity capacity of of of of a a of of capacity capacity prices prices 57 57 city city systems' systems' being being the the decree decree the the Capacity Capacity is is $0.153/kWh $0.153/kWh the the 63 63 transmission transmission part part I I 1 1 I I I I i i ! ! secondary secondary MW MW to to provided provided 6 6 6 6 Genset Genset 15 15 (14.4 (14.4 city city is is ...... overwhelming overwhelming kV kV are are ______ business business for for the the and and envisaged envisaged Electricity Electricity at at of of of of of of out out Djibouti Djibouti of of underground underground of of charged charged 20 20 lines. lines. the the Djibouti Djibouti grids grids system. system. in in MW). MW). technical technical the the ··············· ··············· the the approximately approximately Djibouti. Djibouti. The The units units 2011 2011 of of kV. kV. utility utility cities). cities). in in plant plant Ministry Ministry sector. sector. 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MW. of of share share with with also also European European and and new new 20 20 at at according according ville ville analysis analysis with with (USD (USD dust dust challenges challenges least least maintenance maintenance the the particularly particularly tariff tariff of of as as year year an an farms farms wind wind pursuing pursuing with with the the plant plant should should the the could could 540 540 capacity capacity wind wind the the 36 36 energy energy in in reduces, reduces, Dust, Dust, 55m) 55m) EDD EDD period, period, for for the the in in same same - The The was was job with with GDF GDF to to 31 31 a a to to Djibouti Djibouti 39 39 37 37 38 38 pumping pumping PV PV In In 2017 2017 As As health health targets: targets: and and study study The The Rural Rural alone alone 4.5.2 4.5.2 The The remain remain community community US. effectiveness effectiveness There There scale scale that that 4.5.1 4.5.1 economic economic conditions conditions The The small-scale small-scale located located REEGLE REEGLE RRA RRA DiPippo, DiPippo, 4.5 4.5 Djibouti, Djibouti, regards regards technologies technologies • • • • • • • • 37 37 sustainable sustainable main main modularity modularity the the with with Report Report overwhelming overwhelming has has geothermal geothermal centers centers or or Electrification Electrification Power Power More More are are (i) (i) OTHER OTHER charge charge lo.cation. lo.cation. afford afford away away Services Services The The stand-alone stand-alone Only Only grid grid Individual Individual interim interim 1999; 1999; OFF-GRID OFF-GRID cost cost large large water water SMALL-SCALE SMALL-SCALE mini mini determined determined the the decentralized decentralized equipping equipping over over rural rural activities, activities, groundwater groundwater of of energy energy Regions Regions (though (though off-grid off-grid Sector Sector recently,Japanese recently,Japanese of of Gawlik Gawlik four four from from installation installation and and grid grid in in distances distances a a poorest poorest is is small small 50 50 electricity, electricity, solution solution rollout rollout electrification, electrification, connection connection prices prices of of small small to to a a power power 100 100 out out systems. systems. critical critical geothermal geothermal solar solar geothermal geothermal Assessment Assessment the the and and charge charge RENEWABLE RENEWABLE use use PV PV majority majority 70 70 not not batteries batteries was was of of PV PV decentralized decentralized electricity electricity the the of of of of rural rural plant plant Kutscher, Kutscher, and and grid grid option option with with systems. systems. 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MW. have have lowering lowering for for 30% 30% used used likely likely dilemma. dilemma. villages villages in in type type rural rural cannot cannot through through as as Solar Solar The The to to use use the the as as viable viable shown shown stand mini Small to to by by offers offers of of an an to to for for 32 32 Djibouti Djibouti 40 40 document document (Measurement, (Measurement, reduction reduction Djibouti Djibouti develop develop financial financial mobilize mobilize countries countries be be Negotiations Negotiations countries countries national national International International NAMA NAMA concept concept distributed distributed 4.6 4.6 experience experience makers makers Wind Wind communities communities 4.5.3 4.5.3 to to wind wind becoming becoming Obtained Obtained the the assess assess speed speed main main power power Power Power FINANCING FINANCING in in is is renewable renewable of of OFF-GRID OFF-GRID is is level level from from support, support, 100 100 are are are are the the and and NAMA NAMA defined defined order order increasingly increasingly most most "Nationally "Nationally wind wind in in instrument instrument is is the the Sector Sector at at committed committed using using viability viability required required negotiations negotiations billion billion on on sustainable sustainable but but wind wind favorable, favorable, Reporting Reporting COP COP EUEI EUEI probably probably to to a a energy energy must must technical technical describing describing decentralized decentralized by by prepare prepare energy energy stand-alone stand-alone Assessment Assessment energy energy US US PDF PDF WIND WIND 17 17 the the of of to to appropriate appropriate for for be be attractive attractive in in dollars dollars systems. systems. to to support support and and different different mechanical mechanical RENEWABLE RENEWABLE roadmap roadmap development, development, eligible eligible and and on on measurable, measurable, sources sources Cancun Cancun the the the the the the is is assistance assistance AF AF ELECTRICITY ELECTRICITY climate climate its its limited limited Verification) Verification) funding funding institutional, institutional, provision provision Report Report Mercados Mercados and and per per objectives, objectives, scale. scale. developing developing options. options. and and technologies technologies for for Bali Bali confirmed confirmed Mitigation Mitigation year year mini-grid mini-grid to to wind wind change change and and electricity electricity could could of of verifiable verifiable However, However, (COP (COP report report the the a a from from of of few few NAMA. NAMA. technology technology However, However, turbine turbine funds, funds, need need set set its its regulatory regulatory benefit benefit countries countries on on now now delivery delivery cases cases the the 2013 2013 13) 13) Actions" Actions" ENERGY ENERGY institutional institutional up up in in energy energy for for production. production. and and political political is is it as as open open different different for for primarily primarily This This could could to to of of from from funding funding any any technology technology Notifiable Notifiable mix mix monitoring monitoring also also transfer. transfer. 2020. 2020. in in wind wind systems systems and and fund, fund, up up (NAMA). (NAMA). be be mitigation mitigation scenarios. scenarios. the the this this agreement agreement new new important important policy policy parts parts structure, structure, attractive attractive pumping, pumping, the the The The and and implementation implementation to to fund fund can can funding funding Green Green be be (MVR). (MVR). of of specific specific technical technical Government Government impacts. environment environment for for managed managed provide provide Djibouti. Djibouti. of of to to its its in in options. options. and and the the greenhouse greenhouse Fund Fund recognize recognize opportunities opportunities Bali Bali impact impact In In cost cost 40 40 implementation implementation much much assistance assistance this this much much (Green (Green by by and and of of In In analysis analysis of of for for context, context, in in the the NAMAs NAMAs some some work work Copenhagen. Copenhagen. Djibouti Djibouti needed needed that that terms terms gas gas investment investment World World Fund) Fund) as as through through areas areas Djibouti's Djibouti's awaits awaits measures measures must must well well developed developed of of through through power power must must of of Bank, Bank, which which C02 C02 where where be be as as its its the the the the in in Developed Developed carried carried MRV MRV submit submit for for policy policy at at will will policy policy should should its its new new the the rural rural out out to to a a 33 33 Djibouti Djibouti and and As As and and investors investors 5.2 5.2 uncertainty uncertainty all all for for competitive competitive While While will will 5.1 5.1 • • The The concerns concerns partnerships. partnerships. management management • • government government 5 5 previously previously • • of of an an PPIAF PPIAF implementing implementing • • Revise Revise sector sector Develop Develop revising revising and and investment investment attract attract Law Law reassurance reassurance likely likely power power NEXT NEXT the the LEGAL LEGAL expression expression Power Power FIALE FIALE the the Review Review enhancements enhancements of of participation participation credit credit evaluation evaluation those those they they community community Assesslllent Assesslllent costs. costs. positioned positioned realistic realistic government government be be the the in in that that wells wells the the of of World World investment. investment. take take have have reviewed reviewed private private and and the the sector sector the the roles roles energy energy tender tender need need its its would would enhancements enhancements a a Sector Sector enhancements enhancements project project capacity capacity covers covers indicated, indicated, Similar Similar credit credit national national tax tax are are key key ambiguity ambiguity two two in in Commercial Commercial indicated indicated to to finance finance CALDERA CALDERA Bank/AfDB Bank/AfDB and and of of AND AND to to of of of of public public the the STEPS STEPS sector sector drilled. drilled. to to code: code: private private for for Assessment Assessment infrastructure infrastructure be be and and self-sufficiency to to years years in in of of Interest Interest on on undertake undertake the the and and the the the the to to enhancements enhancements help help will will responsibilities responsibilities energy energy assess assess building building willing willing the the the the to to the the the the what what electricity electricity likely likely Djibouti Djibouti Djibouti Djibouti regulatory regulatory confirmed. confirmed. private private The The model. model. investments, investments, our our INSTUTIONAL INSTUTIONAL to to that that likely likely about about sector. sector. the the project, project, investors investors potential potential government government on on can can complete, complete, (EOI) (EOI) Code Code the the what what sector. sector. work work current current sponsored sponsored government government to to they they cost cost the the on on Report Report to to be be the the involve involve partnership partnership likely likely invest invest PROJECT PROJECT The The lacks lacks faces faces sectors. sectors. attract attract legislative, legislative, project. project. and and their their and and law: law: and and with with put put of of framework, framework, will will rules rules because because Fiale Fiale and and It It 33% 33% of of World World the the technical technical the the eventually eventually to to in in costs costs a a critical critical the the will will in in and and investment investment be be energy energy the the different different EUEI EUEI government government drilling drilling private private comprehensive comprehensive the the expedite their their place place of of Fiale Fiale However, However, sector. sector. the following following Caldera Caldera to to tax tax pre-qualification pre-qualification supporting supporting This This be be GDC GDC relative relative game game transactions transactions will will there there Bank Bank canvas canvas institutional institutional on on important important barriers barriers Partnership Partnership cost cost to to Calder Calder access. access. tariff tariff FRAMEWORK FRAMEWORK requirements requirements is is investors investors program program SPECIFIC SPECIFIC be be stakeholders. stakeholders. imports imports in in the the attract attract and and is is also also model model geothermal geothermal expectations expectations illlplications illlplications benefit benefit and and the the Kenya Kenya the the currently currently actions actions of of setting, setting, tax tax release release efforts efforts complicates complicates geothermal geothermal that that There There related related French French Djibouti Djibouti international international ways ways legal legal private private in in to to code code which which is is at at and and and and Dialogue Dialogue affect affect and and they they the the educate educate prohibitive. prohibitive. of of the the will will granting granting to to is is and and of of and and in in developers developers no no regulatory regulatory to to to to bidders bidders infrastructure infrastructure Development Development project project GreenMax GreenMax a a Fiale Fiale develop develop The The anticipates anticipates investment investment a a expect expect TASKS TASKS would would which which on on guarantees guarantees serve serve provide provide the the clear clear long long the the renewable renewable general general institutional institutional project, project, government government the the the the Plan Plan offtaker offtaker Law Law ability ability development development Caldera Caldera of of list list for for legal legal to to developlllent developlllent be be the the different different to to project. project. and and laws The The licenses, licenses, fronts fronts facilitate facilitate more more for for is is would would notice notice receive receive of of the the in in is is Capital Capital government government a a and and developing developing which which of of basis basis energy energy Djibouti Djibouti the the measures measures IPPs IPPs sectors. sectors. government government tariff tariff Agency, Agency, issue. issue. field field geothermal geothermal framework framework Djibouti Djibouti incentives incentives efforts efforts as as the the need need Associated Associated of of ministries ministries provide provide for for incentive incentive from from regulations regulations and and well well international international USAID USAID would would of of and and is is These These the the costs costs sources sources costs costs This This cumbersome cumbersome private private $0.09 $0.09 and and to to form form the the to to that that finance finance project, project, as as private private can can a a to to identify identify a a attract attract draft draft implications implications add add for for project project is is technical technical what what credit credit World World for for creates creates with with meet meet much much is is in in the the measures measures reduce reduce may may public-private public-private currently currently framework, framework, with with sector sector well well private private for for the the attracting attracting to to Electricity Electricity sector sector a a more more terms terms the the serious serious the the need need what what needed needed request request Bank Bank PPPs. PPPs. before before the the both both and and those those and and twin twin cost cost to to to to of of 34 34 Djibouti Djibouti adequate adequate As As experience, experience, to to 5.4 5.4 projects. projects. between between The The affordable affordable while while (especially (especially socially socially their their involves involves 5.3 5.3 the the • • • • • • meet meet • • • • indicated indicated participation participation for for Streamline Streamline development development will will lack lack international international training training to to Establish Establish to to undertake undertake implementation implementation will will take take government government some some best best Develop Develop or or law law system, system, enticing enticing PUBLIC-PRIVATE PUBLIC-PRIVATE IMPROVING IMPROVING Create Create Develop Develop center center concession. concession. unit unit sector sector likely likely World World Power Power create create be be if if the the natural natural acceptable acceptable the the need need and and striking striking therefore therefore to to of of implemented implemented for for a a trained trained way way enough enough challenge challenge working working important important separate separate technical technical issue issue a a government government in in PPA PPA new new be be Sector Sector must must service service institutional institutional of of a a regulatory regulatory a a Bank, Bank, a a to to operators operators regulatory regulatory the the this this to to pro-business pro-business resources. resources. geothermal geothermal a a PPP PPP the the knowledge knowledge the the develop develop of of influence. influence. a a the the in in national national IPPs, IPPs, IPP IPP gaining gaining of of negotiation negotiation negotiation, negotiation, be be to to need need concession concession tariffs. tariffs. and and A A Assessment Assessment non-State non-State home home regulatory regulatory across across modern modern AfDB AfDB geothermal geothermal a a and and their their right right knowledge knowledge unit: unit: satisfy satisfy of of in in upgraded upgraded developers developers higher higher geothermal geothermal when when then then numerous numerous to to engaging engaging rural rural instrument instrument to to and and enforcement enforcement a a REGULATORY REGULATORY capacity capacity of of the the instrument instrument debt, debt, balance balance Strong Strong upgrade upgrade PPP PPP The The and and several several process process be be If If and and law law the the the the principles principles the the culture culture the the level level the the areas), areas), interest interest actors actors the the and and as as needs needs procurement procurement process process AFR. AFR. Ministry Ministry Report Report to to framework: framework: and and technical technical law law capacity capacity clarifying clarifying needs needs inter-ministerial inter-ministerial regulatory regulatory and and efficient efficient IPPs. IPPs. and and government government PARTNERSHIPS PARTNERSHIPS off-take off-take in in drafting drafting other other meet meet project. project. PPP PPP among among ministries ministries for for for for the the even even in in within within is is such such transactions transactions addressing addressing to to managerial managerial contractors. contractors. of of for for A A of of PPPs, PPPs, of of power power required. required. streamlining streamlining of of performance performance legal legal for for be be the the reports, reports, more more more more of of utility utility of of the the invest invest as as ratemaking, ratemaking, the the resource resource as as financial financial agreements agreements evaluated evaluated techniques techniques the the The The EDD EDD pennits. pennits. Economy, Economy, needs needs entity, entity, EDD EDD independent independent and and possible. possible. framework framework the the general general and and A A provision provision energy energy of of private private specific specific rights rights management management inter-ministerial inter-ministerial PPP PPP in in public public Djibouti Djibouti Ministry Ministry oversight oversight expertise expertise Djibouti Djibouti FRAMEWORK FRAMEWORK which which coordinating coordinating with with departments departments must must of of permanent permanent upgrades upgrades EDD, EDD, for for sustainability, sustainability, such such of of structuring structuring to to legal legal public public Numerous Numerous sector: sector: to to sector sector Other Other and and the the Finance Finance private private the the enable enable framework framework its its complaints complaints be be determine determine is is will will the the likely likely along along permits. permits. must must producers producers a a conduct conduct will will decides decides key key other other developed developed framework framework as as of of of of resource: resource: major major and and and and enhance enhance functions functions players players An An policies. policies. well well key key PPAs. PPAs. IPPs IPPs or or sector sector staff staff need need committee committee will will build build and and to to with with ministries ministries PPP PPP to to permits permits appropriate appropriate ad-hoc, ad-hoc, expansions, expansions, geothermal geothermal staff staff be be if if customer customer as as to to impediment, impediment, may may of of stimulate stimulate and and to to also also Planning Planning and and to to (IPPs). (IPPs). Its Its modifications modifications in in the the developed developed developers. developers. its its assign assign training training projects projects to to cost cost its its generate generate is is These These create create include include in in The The Djibouti. Djibouti. resolving resolving be be internal internal technical technical equip equip undertake undertake need need staff staff ability ability needed needed will will is is the the energy for for of of required required and and independent independent The The viability viability this this service service working working private private regulatory regulatory is is service service training training a a be be while while to to on on of of PPPs. PPPs. in in them them allocating allocating agencies agencies enough enough unit unit the the to to especially especially with with develop develop regulatory regulatory required required key key EDD EDD the the in in renewable renewable structuring structuring The The Regulatory Regulatory possible possible and and attract attract these these order order to to entity entity the the for for which which with with MERN, MERN, quality quality regulatory regulatory sector sector To To agencies agencies of of surveys surveys support support from current current programs programs the the under under group capacity capacity regulatory as as revenue revenue tariffs tariffs the the using using instrument instrument from from build build on on important important PPP PPP the the to issue issue to tools tools major major for for law law subsidies subsidies that that conflicts conflicts will will in in staff staff power power economy, economy, energy energy PPPs. PPPs. politically politically concessions concessions will will principal principal functions functions the the constraining constraining and and level level the the procurement procurement can can severe severe will will must must up up is is to to serve serve function function will will to to will will not not also also a a a a mining mining the the be be A A sector. sector. operate operate most most the the ODEG ODEG power power of of tasks. tasks. public public goes goes be be serve serve PPP PPP made made need need as as need need off and and are are a a 35 35 It It and policy guidelines to ensure that all PPPs are carried out in line with international best practices. It will also need to be able to enforce planning, procurement and implementation standards for all PPP transactions. Specialized training will be needed along with outside PPP advisory support to implement these reforms and train the Ministry staff. These trainings will cover all of the relevant aspects of PPP project development including financial modeling, fiscal risk analysis, legal documentation and negotiation and project risk monitoring and supervision techniques. Additional consultations with the World Bank and IFC are needed to better understand their planned support for Djibouti's PPP legal and regulatory framework as well as the eventual public procurement of the Fiale Caldera geothermal energy project. 5.5 TRAINING IN PPP & REGULATION Tetra Tech organized a workshop in October 2014 on Public-Private Partnerships for representatives from the Ministry of Energy, the utility EDD, the research institute CERD, the new geothermal development unit ODDEG and the Ministry of Economy and Finance. The workshop was well received and participants actively participated in discussions. Nonetheless, a two day course is only an introduction to PPP and additional training on specific areas of PPP, such as financial modeling, procurement, negotiating and structuring PPAs and institutional mechanisms for managing the procurement and supervision of PPP projects, is required to build indigenous capacity. The following presents a preliminary assessment of the training programs that should be considered for the Djibouti energy sector to build strengthen institutions and build capacity to meet the challenges of resource diversification through private sector participation. The two main components of the training are PPP and Regulation. The PPP training shall cover in depth the issues touched upon superficially during the PPP training workshop. Enhanced Regulation will be needed to support the development of new regulatory body within the MERN and the implementation of the new Electricity Law. A broader training program will be needed on regulation once the entity is created and its internal processes are more precisely defined. I. Component 1: Public Private Partnership a. PPP Policy and Regulatory Framework-a program focusing on the policy guidance and regulatory framework for PPPs in infrastructure. This course will examine: i. Review of different legislative models for regulating PPPs, ii. The role of PPP Units and sector nodes and risk management offices iii. PPP project cycle-creating and enforcing a PPP project cycle with gateway reviews to ensure high level technical and political oversight and support b. PPP Project Appraisal Techniques-a program focusing on the identification and quantification of risks in PPP projects and strategies for allocating and mitigating risks to achieve Value for Money. This training will focus on the following themes: i. Value for Money-what does it mean and how does it apply in the appraisal and identification of viable PPPs ii. Risk analysis-what are the key risks and how are they quantified and used to structure a financially bankable PPP project iii. The Risk Matrix and Risk Register in a PPP project-how can the risks be categorized and tracked throughout the PPP project cycle Djibouti Power Sector Assessment Report 36 Djibouti Djibouti Power Power Sector Sector Assessment Assessment f. f. e. e. d. d. c. c. Preparation Preparation instruct instruct Project Project issues: issues: and and focusing focusing topics topics Finance Finance Project Project Project Project major major implementation implementation latest latest iii. iii. iii. iii. iv. iv. ii. ii. iv. iv. ii. ii. legal legal v. v. ii. ii. i. i. v. v. i. i. i. i. techniques techniques and and themes: themes: Report Report on on and and Examination Examination Inter-creditor Inter-creditor closing-key closing-key financing financing and and role role Procurement Procurement Regulating Regulating criteria criteria procurement procurement practices practices the the execution execution quantify quantify independent independent Finance-examination Finance-examination Controlling Controlling Management Management Fiscal Fiscal government government processes processes The The performance performance within within stakeholders, stakeholders, Enforcing Enforcing Procurement Procurement with with Economic Economic economic economic and and financial financial energy energy Financial Financial potential potential Understanding Understanding Management Management on on model model themes: themes: how how RFP RFP their their role role processes processes of of term term institutional institutional of of the the Risk Risk the the the the for for to to PPP PPP projects-how projects-how of of of of of of to to aid aid and and tolerance tolerance for for and and sheet sheet IRRs IRRs model model in in structure structure Modeling Modeling of of to to lenders lenders project project the the public public allocating allocating Cost Cost PPP PPP security security prequalification prequalification secure secure unsolicited unsolicited management management and and PPPs PPPs credit credit of of engineers, engineers, enhance enhance contracts contracts managing managing PPP PPP of of for for guidelines account account of of processes processes terms; terms; issues-understanding issues-understanding techniques techniques use use for for PPP PPP and and Techniques-a Techniques-a Key Key and and negotiation. negotiation. the the the the projects projects the the Benefit Benefit managing managing for for models for for models use use sector, of of procurement, procurement, projects projects (IRRs, (IRRs, optimum optimum and and for for enhancements enhancements contract-contract contract-contract core core Transaction Transaction project project and and PPP PPP fiscal fiscal and and Performance Performance a a negotiating negotiating auditors auditors in in risks risks for for communication communication PPP PPP risks; risks; financiers financiers bids bids to to the the for for and and insurance insurance for for bankable bankable of of credit credit financial financial Analysis Analysis contract-techniques contract-techniques including including for for the the techniques-review techniques-review DSCRs, DSCRs, determine determine impact impact the the project project in in PPP PPP the the finance finance energy energy efficiently efficiently and and PPPs PPPs controlling controlling and and The The investor investor political political a a tracking tracking fiscal fiscal of of etc. etc. PPPs. PPPs. enhancements enhancements principles principles partnership-governance partnership-governance construction construction penalties penalties program program preparation preparation project-how project-how award award examination examination parties parties training training Negotiation Negotiation in in Indicators-survey Indicators-survey BOT BOT in in drivers drivers advisors advisors DIE), DIE), to to IPPs. IPPs. risks risks terms terms projects-a projects-a The The PPP PPP a a the the interest; interest; measure measure the the risk risk and and and and PPP PPP managing managing management management of of contract. contract. direct direct and and least least It It embedded embedded program program negotiating negotiating projects; projects; perspective perspective to to of of will will and and sheet sheet of of the the measuring measuring insurers insurers problem problem will will project project and and train train and and project project of of their their private private contract; contract; of of in in cost cost how how incentives incentives be aimed aimed be negotiations; negotiations; project project sensitivities, of of Techniques-a Techniques-a to to for for the the for for examine examine technical technical project project international international operational operational program program Key Key project project and and the the manage manage role role will will option option inter-creditor inter-creditor drafting drafting RFQ RFQ and and to to with with a a solving solving finance finance in in sector sector and and the the BOT BOT techniques techniques of of structure structure project project supervising supervising provisions provisions techniques techniques PPP PPP cover cover their their finance finance at at different different special special and and term term the the to to managers managers supervision supervision models models experts experts and and and and designed designed the the power power investment investment and and contracts contracts optimize optimize designing designing as as following following risks-role risks-role roles roles RFP, RFP, following following the performance performance sheets sheets best best most most following following develop develop a a selection selection program program structuring structuring focus focus financial financial applied applied issues issues and and in in for for in in lenders lenders plant plant the the Project Project in in viable viable to to IPPs IPPs the the and and and and the the on on a a and and 37 37 of of to to formulate formulate As As sector sector energy sector. sector. 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Djibouti Djibouti August August http://www.edd.dj/ http://www.edd.dj/ h h http://www.reegle.info/ http://www.reegle.info/ http:// http:// World World http://en.wikipedia.org/wiki/Economy http://en.wikipedia.org/wiki/Economy USAID, USAID, World World November November Project Project World World financier financier Audrey Audrey Outlook.org', Outlook.org', d'eau d'eau European European The The EUEI EUEI The The Developpement Developpement EUEI EUEI The The Developpement Developpement March March Africa-EU Africa-EU 68254-DJ, 68254-DJ, Report', Report', International International REFERENCES REFERENCES ttps ttps World World World World World World ://www.cia.gov/Ii ://www.cia.gov/Ii en. en. wiki potable potable PDF PDF PDF PDF Bank Bank Bank Bank Bank, Bank, Power Power 13, 13, No. No. 2009. 2009. Emmanuelle Emmanuelle 'Leveraging 'Leveraging April April et et Commission, Commission, 2014 2014 2012. 2012. May May Energy Energy and and and and Bank Bank Bank, Bank, Bank, Bank, 68191-DJ, 68191-DJ, structure structure and and and and pedia.org/wiki/Dji pedia.org/wiki/Dji Sector Sector 'Restructuring 'Restructuring Renewable Renewable 2014 2014 par par 2014 2014 AF AF AF AF du du 2013 2013 du du Parsons Parsons Fichtner, Fichtner, Group, Group, dessalement dessalement 'Country 'Country 'Project 'Project Partnership, Partnership, Mercados, Mercados, Secteur Secteur Mercados, Mercados, Secteur Secteur Assessment Assessment Vergnes Vergnes de de Partnerships Partnerships brary brary March March 'Elaboration 'Elaboration Gestion', Gestion', 'Country 'Country Brinckerhoff, Brinckerhoff, Energy Energy Appraisal Appraisal 'Projet 'Projet /publi /publi Electrique Electrique Electrique Electrique Assistance Assistance paper paper 2012. 2012. 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