Solar desalination program to improve water security for 550,000 people; largest ever EIB ( commitment signed in Djibouti during working visit to Luxembourg.
The European Investment Bank (EIB), the world’s largest international public bank, has today approved €79 million in 25-year financing to support water desalination, access to clean drinking water and wastewater treatment in Djibouti.
The EIB’s first-ever water investment support in 44 years of operations in the East African country will transform access to water in the national capital, enhance resilience to climate change, expect to secure access to clean water for more than 555,000 people and provide solar powering renewable energy to produce clean drinking water as part of Global Gateway
The EIB’s first investment in Djibouti through its new development finance arm EIB Global will double the freshwater production capacity of the Doraleh desalination plant and expand three wastewater treatment plants in Doraleh, Balbala and Douda. The EIB’s long-term loan to the Ministry of Economy and Finance of the Republic of Djibouti is guaranteed by the European Union’s Neighbourhood, Development and International Cooperation Instrument (NDICI) and will be used alongside grant financing from the European Union, the French Development Agency (AFD) and support from the government of Djibouti.
The largest ever EIB loan for investment in Djibouti was signed during a working visit to the Luxembourg headquarters of the European Investment Bank by Finance Minister Ilyas Moussa Dawaleh and Thomas Östros, Vice President of the European Investment Bank, in the presence of Youssouf Aouled Faraf, Director of the Prime Minister’s Office and President of the National Water Agency ONEAD, and HE Aden Mohamed Dileita, Ambassador of the Republic of Djibouti to the European Union and the Benelux.
Djibouti Finance Minister Ilyas Moussa Dawaleh said: “The European Investment Bank’s new support for water security is an important milestone in enabling Djibouti to adapt to a changing climate. The partnership between Djibouti and the European Union will help us transform and secure the water supply for thousands of people in our country and contribute to the achievement of our country’s sustainable development goals. We are grateful for the financial support and technical expertise of the EIB and look forward to reaping the benefits of this partnership for our people.”
“The European Investment Bank is pleased to extend its support for transformational water investments in Africa and scaling up water desalination and wastewater treatment in Djibouti. This visionary new investment demonstrates EIB Global’s determination to address water challenges and promote climate resilience in vulnerable countries through best-practice technology and large-scale infrastructure investments, as part of the Global Gateway initiative. By using renewable energy sources, this project will significantly contribute to sustainable and inclusive development in Djibouti. The sanitation component will overcome 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 investment from the EIB and the EU delivers on the strong commitment of the European Union to sustainability and climate action. The investment follows the inauguration of the desalination plant in Djibouti in 2021 and is a perfect example of Team Europe’s collaboration.
Moreover, it proves the strength of our longstanding partnership with Djibouti in jointly pursuing innovative solutions to water scarcity. Today’s project will become a model for water management best practices across the region and around the world.” said Jutta Urpilainen, European Commissioner for International Partnerships.
Strengthening climate resilience and water security in the Horn of Africa under Global Gateway
Djibouti is one of the most vulnerable countries in the world to the impacts of climate change, including prolonged drought, extreme temperatures, flash floods and long-term salinization of soils and underground aquifers.
The new investment will be carried out by the Office National de l’Eau et de l’Assainissement de Djibouti (ONEAD) and supports Vision Djibouti 2035. The project is the second phase of the PEPPER-Production de l’eau potable par dessalement et energie renewable initiative. Phase 1 has made it possible to produce 22,500 cubic meters of fresh water per day. Phase 2 will enable the daily production of 45,000 cubic meters of fresh water and will include the construction of a 12 MW photovoltaic plant for desalination.
Transforming water security in the Horn of Africa as part of Global Gateway
Djibouti faces major challenges to ensure reliable access to clean water and proper wastewater management.
The new projects supported by the EIB will focus on the implementation of advanced water desalination technologies and the improvement of wastewater treatment infrastructure. By using renewable energy sources, such as solar and wind power, these initiatives will not only ensure a sustainable water supply, but also reduce Djibouti’s environmental footprint, contributing to global climate goals.
The investment will enable Djibouti to develop its water sector, strengthen its resilience to climate change and improve water security for its people. In addition, the EIB’s long-term loan and concessional financing will enable cost-effective project implementation, ensuring sustainable water management practices for years to come.
The EIB financing for water desalination and wastewater treatment in Djibouti is an important step towards water security, improving climate resilience and boosting sustainable development in the country. This partnership between Djibouti, the European Investment Bank and the European Union will serve as a beacon of hope, provide long-term benefits to the people and set an example for future water-related projects.
The European Investment Bank has been supporting energy, telecom and business investments in Djibouti since 1979.
Distributed by APO Group on behalf of the European Investment Bank (EIB).
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The European Investment Bank (EIB) is the long-term credit institution of the European Union owned by its Member States. It makes long-term funding available for sound investments to contribute to EU policy objectives.
EIB Global (the specialized division of the EIB Group dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster a strong, focused partnership within Team Europe (together with peer institutions for development finance and civil society EIB Global brings the group closer to local people, businesses and institutions through our offices around the world (https://apo-opa.info/3EOW13M).
About the European Union (EU):
The European Union is an economic and political union of 27 European countries. It is based 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 for the benefit of all.
Global Gateway is the European strategy to drive smart, clean and secure connections in the digital, energy and transport sectors and strengthen health, education and research systems around the world. Through a ‘Team Europe approach’, Global Gateway brings together the EU, its Member States and their financial and development institutions to mobilize the private sector to leverage investment for transformative impact. The aim is to mobilize up to EUR 300 billion in investments. Global Gateway is fully aligned with the UN’s 2030 Agenda and Sustainable Development Goals, as well as the Paris Agreement.
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€79 million support from the European Investment Bank for water desalination and wastewater treatment in Djibouti
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