EIB Backs Djibouti Desalination And Wastewater Expansions

The €79 million loan will fund phase two of the Doraleh desalination project.

By Liz Bains on
13th July 2023

The European Investment Bank (EIB) has agreed to provide €79 million (US$88 million) in financing to support the development of desalination and wastewater treatment infrastructure in Djibouti.

The funds will be used to double the production capacity of the Doraleh desalination plant and expand three wastewater treatment plants at Doraleh, Balbala and Douda.

The 25-year EIB loan to the Ministry of Economy and Finance of Djibouti is guaranteed by the European Union’s Neighbourhood, Development and International Cooperation Instrument, and will be used alongside grant financing from the European Union, the French Development Agency (AFD) and support from the Djibouti government.

The Doraleh reverse osmosis desalination plant was inaugurated in 2021 with a capacity of 22,500 cubic metres a day.

The expansion represents phase two of the PEPER Project (Producing Safe Drinking Water with Renewable Energy). It will be implemented by Djibouti’s National Office of Water and Sanitation (ONEAD) and will double output to 45,000 cubic metres a day, securing access to clean water for more than 555,000 people.

The second phase will include the construction of a 12MW photovoltaic solar plant to power the desalination processes. The contractor for phase one was a joint venture of Spain’s Tedagua and France's Eiffage.

The Doraleh desalination plant
The Doraleh desalination plant

"The European Investment Bank’s new support for water security represents a significant milestone in enabling Djibouti to adapt to a changing climate,” said Ilyas Moussa Dawaleh, finance minister, Djibouti. “The partnership between Djibouti and the European Union will help us to transform and secure water supply for thousands of people in our country and contribute to delivering our country's sustainable development goals.”

Top photo: Djibouti finance minister Ilyas Moussa Dawaleh and Thomas Östros, EIB vice president at the contract signing ceremony (Source: EIB website)

Bottom photo: The Doraleh desalination plant (Source: Tedagua website)

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