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under under

Road, Road,

for for

by: by:

the the

Power Power

Suite Suite

United United

Africa Africa

600 600

States States

Transactions Transactions

Agency Agency

for for

and and

International International

Reforms Reforms

Program Program

Development, Development,

("PATRP"). ("PATRP").

USAID USAID

Contract Contract No. No.

the the

The The

Government. Government.

DISCLAIMER DISCLAIMER

NOVEMBER NOVEMBER

SECTOR SECTOR

REPORT REPORT

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

......

......

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

......

POWER POWER

......

......

......

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)

-

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

de de

Development Development

(Direction (Direction

Power Power

for for

de de

de de

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

Agency Agency

Bank Bank

Funds Funds

Natural Natural

de de

Infrastructure Infrastructure

Initiative Initiative

Company Company

la la

de de

and and

and and

Naturelles) Naturelles)

~ ~

de de

Management Management

Statistique Statistique

(The (The

Djibouti) Djibouti)

Agency Agency

(Agence (Agence

(Electricite (Electricite

Resources Resources

I'Energie) I'Energie)

Research Research

Demographic Demographic

Agency Agency

(Chambre (Chambre

Social) Social)

Partnership Partnership

World World

Trust Trust

(Agence (Agence

Fran\:aise Fran\:aise

et et

(Centre (Centre

de de

Bank) Bank)

(Ministere (Ministere

(Agence (Agence

des des

de de

Fund Fund

Djibouti) Djibouti)

Dialogue Dialogue

Commerce Commerce

Studies Studies

Etudes Etudes

de de

--

de de ii ii

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 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

Geothermal Geothermal

Renewable Renewable

Bank Bank

pour pour

Readiness Readiness

for for

of of

Partnership Partnership

Infrastructure Infrastructure

Africa Africa

International International

Environment Environment

Petroleum Petroleum

Agreement Agreement

le le

International International

Developpement Developpement

of of

Transactions Transactions

Energy Energy

Assessment Assessment

Energy Energy

Development Development

Regulatory Regulatory

Exporting Exporting

Development Development

Advisory Advisory

Programme Programme

Development Development

Cooperation Cooperation

report report

de de

and and

Utility Utility

Countries Countries

l'Energie l'Energie

Facility Facility

Reforms Reforms

Programme Programme

(Office (Office

-

Program Program

OPEC OPEC

- iii iii

Djibouti Djibouti

MAP MAP

Power Power

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DJIBOUTI DJIBOUTI

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87-100% 87-100%

with with

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severely severely

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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

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to to

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Africa's Africa's

Report Report

fuel. fuel.

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framework framework

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0.06-0.07/kWh. 0.06-0.07/kWh.

high high

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2020 2020

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out out

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The The

I: I:

losses losses

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potential potential

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renewable renewable

prices prices

PcnH•r PcnH•r

import import

retail retail

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187 187

growth growth

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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

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legislative, legislative,

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Specific Specific

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Report Report

Djibouti Djibouti

to to

MERN MERN

project project

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companies. companies.

of of

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the the

define define

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In In

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line line

geothermal geothermal

provide provide

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financial financial

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standards standards

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USA USA

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277 277

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new new

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33 33

No. No.

Dikhil Dikhil

$0.426/kWh $0.426/kWh

all all

railway railway the the

2012-

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generated generated

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miles) miles)

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2015 2015

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World World

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Assessment Assessment

future future

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5: 5:

national national

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TARIFFS TARIFFS

2014 2014

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·································· ··································

& &

capacity capacity

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grid grid

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DISTRIBUTION DISTRIBUTION

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located located

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Appendix Appendix

first first

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Dikhil Dikhil

to to

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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

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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

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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.

Djibouti Djibouti

5. 5.

The The

distribution distribution

overall overall

5.6 5.6

7 7

• •

previously previously

viability viability

NATIONAL NATIONAL

CAPACITY CAPACITY

Assess Assess

The The

EU EU

coming coming

Power Power

Development Development investment investment

not not

financial financial

It It

is is

II. II.

a a

invest invest

has has

AFD AFD

ten-year ten-year

envisaged envisaged

system system

of of

Sector Sector

in in

mentioned, mentioned,

the the

committed committed

years. years.

the the

Djibouti. Djibouti.

Regulation Regulation

management, management,

plans plans

in in

technical technical

will will

must must

national national

Assessment Assessment

Djibouti Djibouti

c. c.

a. a. b. b.

National National

Agency Agency

that that

to to

be be

STRATEGY STRATEGY

BUILDING BUILDING

can can

Quality Quality

conducting conducting

transmission transmission Regulatory Regulatory

The The

Tariff Tariff

grid. grid.

be be

for for

covered covered

be be

The The

undertake undertake

there there

needed needed

$12 $12

the the

developed developed

m. m.

examined examined

iii. iii.

and and

utility utility

hydro, hydro,

be be

ii. ii.

in in

ii. ii.

course course

unless unless

i. i.

(AFD) (AFD)

i. i.

The The

Strategy Strategy

EUEI EUEI

National National

as as

million million

the the factored factored

Regulation-a Regulation-a

are are

Report Report

financial financial

Tariff Tariff

of of

Price Price

Feed Feed

Transmission Transmission

Wheeling Wheeling

contracts contracts

boundaries; boundaries;

obligations obligations

Key Key fuel fuel

PPP PPP arbitration, arbitration,

charges, charges,

effectiveness, effectiveness,

sample sample

Key Key

of of

will will

well well

to to

program program

EDD, EDD,

a a

Energy Energy each each

geothermal, geothermal,

Service Service

it it

a a

should should

regulatory regulatory

modernize modernize

Partnership Partnership

also also

Impact Impact

number number

and and

and and

contracts, contracts,

financial financial

legal legal

financial financial

be be had had

in in

to to

as as

to to

Cap Cap

Euros Euros

and and

design design

Strategy Strategy

OF OF

into into

Tariff Tariff

system system

contracts contracts

enhance enhance

the the

complement complement

capacities capacities

in in

expressed expressed

energy energy

AND AND

distribution. distribution.

provisions; provisions; penalty

a a

for for

viability viability

a a

and and

agreements agreements

issues issues

will will

introduce introduce

Sector Sector

terms terms

viable viable

Regulation Regulation

following: following:

five-year five-year

mediation mediation

the the

to to

review review

of of

EDD EDD Analysis-examination Analysis-examination

sharing sharing

issues issues

Regimes Regimes

impact impact

clauses clauses

regimes regimes

analysis analysis

construction construction

Rate Rate

finance finance

program program

the the

solar, solar,

examine examine

donor donor benefits benefits

and and

regulations regulations

Dialogue Dialogue

will will

costs, costs,

POWER POWER

its its

in in

of of

and and

offtaker offtaker

nation's nation's

of of

and and

its its

the the

their their

of of

of of

overall overall

reducing reducing

will will

embrace embrace

the the

electricity electricity

the the

wind wind

the the

Action Action

efforts efforts

analysis analysis

their their

concern concern in in

and and

and and

Return Return

governance governance

early early

a a

to to

risks risks

of of

BOT-review BOT-review

and and

in in

and and

to to

the the

new new

also also participants participants

the the

impact impact

introduction introduction

utility. utility.

subsidize subsidize

Plan Plan

EDD EDD

examine examine

the the

such such

alternative alternative

role role

and and

key key

transmission transmission

milestones, milestones,

in in

performance. performance.

following following

power power

costs costs

termination termination

associated associated

BOT/ BOT/

transmission transmission

underway underway

Plan Plan

control control

be be

losses, losses,

renewable renewable

MASTER MASTER

systems systems

the the

energy energy

in in

is is

with with

thermal thermal

of of

provisions provisions

as as

and and

across across

considered considered

on on

assisting assisting

the the

Ormat Ormat

of of

power power

the the

for for

the the

provisions provisions

pools-regional pools-regional

BOO BOO

the the

different different

renewable renewable

the the

how how

litigation; litigation;

improving improving

energy energy

to to

center center

of of

Independent Independent

the the

of of

resolution resolution dispute

US US

of of

sector-how sector-how

key key

of of

geographic geographic

bankability bankability

the the

power power

the the to to

tariff tariff

power power

the the

has has

payouts payouts

IPPs IPPs

and and

energy energy

sector sector

power power

to to

enforcement enforcement

tariff tariff

development development

strengthen strengthen

military military

obligations, obligations,

the the

contract contract governing

themes: themes:

transmission transmission

tariff tariff

make make

principles principles

for for

sector sector

already already

PLAN PLAN

distribution distribution

systems systems

clauses clauses

and and

into into

Djiboutian Djiboutian

projects. projects.

energy energy

sector. sector.

lender lender

regulation-pros regulation-pros

from from

EDD. EDD.

collections collections

project-review project-review

as as

policies policies

EDD EDD

cost cost

the the

base. base.

and and

System System

a a

and and

mechanisms mechanisms

quality quality

indicated indicated

key key

production production

and and

the the

of of

step step

projects projects

Djiboutian Djiboutian

and and

issues issues

Substantial Substantial

In In

pass pass

allocation allocation

political political

of of

financially financially

risks risks

The The

tariff tariff

and and

mechanisms mechanisms

component component

The The

planning planning

system system

addition, addition,

capacity capacity

that that

authorities authorities

the the

in in

techniques techniques

Operators. Operators.

and and

through through

of of

local local

topics topics

to to

and and

rights rights

electricity electricity

French French

will will

regulation. regulation.

that that

service service

the the

the the

through through

and and and and

of of

in in

role role

regimes. regimes.

power power

need need

of of

it it

the the

viable. viable.

IPP. IPP.

and and

the the

of of

of of

will will

to to

cons cons

the the

in in

of of

for for

38 38

a a to to

pillars pillars

As As energy, energy,

Djibouti Djibouti

need need

Country Country

5.9 5.9

protecting protecting

index, index,

supplement supplement

In In

5.8 5.8

increasingly increasingly

sector. sector.

and and

expected expected

lines. lines.

longer-term longer-term

addition addition

mentioned mentioned

• •

• •

• •

demands demands

to to

IMPROVING IMPROVING

of of

with with

SYSTEM SYSTEM

MANAGEMENT MANAGEMENT

Power Power

Africa: Africa:

creates creates

regional regional

Strengthen Strengthen

building building

region. region.

Djiboutian Djiboutian

backed backed

transcontinental transcontinental

establishing establishing transmission transmission

technical technical

from from

The The

coordinating coordinating

The The

Support Support

more more

monitor monitor

for for

strengthen strengthen

much much

among among

been been

energy energy Need Need

energy energy

water water planned planned

long-term long-term

hoc hoc

Partnership Partnership

a a

to to

the the

diversified diversified

the the

to to

entrepreneurs entrepreneurs

approach approach

Djiboutian Djiboutian

French French

its its

present present

energy energy

rely rely

completed, completed,

ad ad

importantly importantly

for for

Sector Sector

power power

and and

the the

of of

public public

early early

significant significant

government government

Furthermore, Furthermore,

project project

donors donors

source source

power power

systems systems

EDD EDD

hoc hoc

its its

power power

would would

energy energy

implementation implementation

rural rural

and and

a a

on on

broad broad

telecommunications. telecommunications.

energy energy

authorities authorities

the the

performance performance

long long

the the

development development

a a

Assessment Assessment

in in

projects, projects,

vision, vision,

a a

Strategy Strategy regional regional

rights, rights,

it it

programs programs

interest interest

financial financial

staff staff

governance governance

to to

supply supply

robust robust

communities communities

economic economic

to to

business-enabling business-enabling

to to

and and

the the

plans plans

pool pool

be be

capacity capacity

authorities authorities

and and

sectors sectors

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2009. 2009.

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2014 2014

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Energy Energy

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