European Investment Bank Launches Landmark Water Investment in Djibouti for Enhanced Access and Climate Resilience

European Investment Bank Launches Landmark Water Investment in Djibouti for Enhanced Access and Climate Resilience

(IN BRIEF) The European Investment Bank (EIB) has announced its first-ever water investment in Djibouti. This transformative project, part of the Global Gateway initiative, will significantly improve water access, enhance climate resilience, and provide clean drinking water to over 555,000 people. The EIB will finance the doubling of freshwater production capacity at the Doraleh Desalination Plant and the expansion of three wastewater treatment plants. The investment, implemented by Djibouti’s water agency ONEAD, will incorporate advanced desalination technologies and renewable energy sources. It aims to address the challenges of water scarcity and climate change in Djibouti while ensuring sustainable water management practices. The EIB’s long-term loan and concessional financing, backed by the European Union, will contribute to cost-effective project implementation. This milestone investment will strengthen water security, promote climate resilience, and drive sustainable development in Djibouti.

(PRESS RELEASE) LUXEMBOURG, 7-Jul-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, in its first-ever water investment in Djibouti, is set to revolutionize water access in the country, enhance climate change resilience, and secure clean water supply for over 555,000 people. The transformative project, part of the Global Gateway initiative, will also facilitate the production of clean drinking water using solar-powered renewable energy.

As a part of its new development finance arm, EIB Global, the EIB will double the freshwater production capacity at the Doraleh Desalination Plant and expand three wastewater treatment plants in Doraleh, Balbala, and Douda. The long-term loan, provided to the Ministry of Economy and Finance of the Republic of Djibouti, is backed by the European Union’s Neighbourhood, Development, and International Cooperation Instrument (NDICI). It will be complemented by grant financing from the European Union, the French Development Agency (AFD), and support from the Djibouti government.

Ilyas Moussa Dawaleh, Finance Minister of Djibouti said, “The European Investment Bank’s new support for water security represents a significant milestone in enabling Djibouti to adapt to a changing climate. 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. We are grateful for the EIB’s financial support and technical expertise and we look forward to unlocking the benefits of this collaboration for our people.”

“The European Investment Bank is pleased to extend its support for transformational water investment in Africa and scale up water desalination and wastewater treatment in Djibouti. This visionary new investment demonstrates EIB Global’s firm commitment to addressing water challenges and promoting climate resilience in vulnerable countries through best-practice technology and high-impact infrastructure investment, as part of the Global Gateway initiative. By leveraging renewable energy sources, this project will significantly contribute to achieve sustainable and inclusive development in Djibouti. The sanitation component will fill a chronic investment backlog in the sector and will improve public health and environmental conditions” said Thomas Östros, Vice President of the European Investment Bank.

” This new EIB and EU investment delivers on the European Union’s strong commitment to sustainability and climate action. The investment follows the inauguration of the the Djibouti desalination plant in 2021 and is a perfect example of Team Europe working together. Moreover, it proves the strength of our long-standing partnership with Djibouti in jointly pursuing innovative solutions to water scarcity. Today’s project will become a model for best practices in water management across the region and around the world.” said Jutta Urpilainen, European Commissioner for International Partnerships.

This landmark investment, signed during a working visit to the EIB’s Luxembourg headquarters, marks the largest-ever financing by the EIB in Djibouti. The agreement was formalized in the presence of key officials, including Finance Minister Ilyas Moussa Dawaleh, Thomas Östros (Vice President of the EIB), Youssouf Aouled Faraf (Director of the Prime Minister’s Office and Chairman of ONEAD), and H.E. Aden Mohamed Dileita (Ambassador of the Republic of Djibouti to the European Union and Benelux).

The investment, implemented by the Office National de l’Eau et de l’Assainissement de Djibouti (ONEAD), aligns with Vision Djibouti 2035. It constitutes the second phase of the PEPER (Production de l’eau potable par dessalement et energie renouvable) initiative. Phase 1 has already achieved a daily production capacity of 22,500 cubic meters of fresh water. Phase 2 will elevate the production to 45,000 cubic meters per day, incorporating the construction of a 12 MW photovoltaic plant for desalination.

With a focus on advanced water desalination technologies and wastewater treatment infrastructure, the projects aim to address the challenges of reliable access to clean water and proper wastewater management in Djibouti. By leveraging renewable energy sources like solar and wind power, these initiatives will ensure sustainable water supply and contribute to Djibouti’s carbon footprint reduction, aligning with global climate objectives.

The investment will enhance Djibouti’s water sector, fortifying its resilience to climate change and improving water security for its population. Moreover, the EIB’s long-term loan and concessional financing will enable cost-effective project implementation, ensuring sustainable water management practices for years to come.

This milestone investment by the EIB in water desalination and wastewater treatment underscores its commitment to water security, climate resilience, and sustainable development in Djibouti. The partnership between Djibouti, the EIB, and the European Union serves as a beacon of hope, delivering long-lasting benefits to the population and setting a precedent for future water-related projects.

The European Investment Bank has been supporting energy, telecom, and business investment in Djibouti since 1979.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.

About the European Union (EU)

The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit.

About Global Gateway

Global Gateway is the European strategy to boost smart, clean and secure links in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Through a ‘Team Europe approach’, Global Gateway brings together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact. It aims to mobilise up to €300 billion in investments. Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement.

Media contact:

Richard Willis
r.willis@eib.org
+352 4379 – 82155

Press Office

press@eib.org
+352 4379 – 21000

SOURCE: European Investment Bank