Prospective projects
The philosophy underlying AFD’s programming in terms of grant financing is to operate alternately every three years in each of the three concentration sectors. Operations have a three-year implementation period. The extension of the implementation period for active projects can however change implementation dates for this programming.
In the urban sector
In continuation of the current “Social development and public interest works in Union quarter (PK12)” project, a project entitled “Social development and public interest works in Balbala quarter” is being processed and should benefit from €5.5M of financing in early 2008.
In the health sector
Unfortunately there were delays during the start-up phase for the implementation of the project to combat AIDS. The mid-term evaluation of implementation should make it possible to take decisions on how to proceed.
In the education sector
Operations outside the three concentration sectors
In the environment sector
Moreover, the French Global Environment Facility (FGEF) where AFD provides the Secretariat, will cofinance a project up to 1 million euros in early 2008. This US$11.6 million project for surface water mobilization and sustainable land management is promoted by IFAD and GEF/UNPD and falls within the framework of the International Convention to combat desertification.
Non-sovereign financings
AFD has more flexibility in terms of operations in sectors eligible for non-sovereign financings in the form of loans.
In the transportation sector
AFD has launched the processing of a non-sovereign loan within the framework of the operation privatization of the Djibouti-Ethiopia Railway (CDE). The aim is to propose financing in partnership with PROPARCO and the EIB. This operation could be envisaged for 2008. The project is entitled “Support to the operation concession of the Djibouti-Ethiopia Railway (CDE)” and aims to reduce transportation costs on the Djibouti-Ethiopia line and support the operation concession for the Djibouti-Ethiopia Railway by cofinancing a priority investment program implemented by a concessionaire which has yet to be appointed. This will give a sizeable percentage of traffic between Djibouti and Ethiopia back to rail transportation which has a comparative advantage and, in normal operating conditions, is more economical than transportation by road. The target for AFD financing will be to construct the rail link between the new Doraleh port (oil terminal and container terminal) and the existing track and improve access to the bulk carrier terminal. The relevant feasibility study carried out by the consultant SYSTRA should be completed by late 2007.
In the fisheries sector
The implementation of a Trade Capacity Building Program (TCBP) could be envisaged in 2008 following a study financed by AFD and carried out by a consultant. The aim is to support Djibouti’s will to develop the sector.
The project feasibility study for the Trade Capacity Building Program (TCBP) “Export of fisheries products in Djibouti” verified that the resources envisaged and the means implemented in the framework of the TCBP matched the orientations and recommendations of the fisheries Master Plan established late 2004 by a consultant through African Development Bank financing.
The expected outcome is the creation of a trade capacity building support program which should allow the Republic of Djibouti to be better integrated into the global trade organization of fisheries products. This would improve trade performances, provide national economic enhancement and improve currency balance.