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Multinational - Transport corridor project phase i project - Appraisal Report


The Ethiopia – Djibouti Transport Corridor Project Phase I will improve logistics and road access to sea ports to Ethiopia and deepen regional integration in the economy, trade and transport. Ethiopia – Djibouti regional integration goes back over a century in the days of the now disused narrow gauge Djibouti – Addis Ababa railway which has been replaced with a new electrified standard gauge railway. 2. The project consists of the construction of 60km of the new 126 km 4-lane expressway from Adama to Awash, design of one-stop-border post and sections of road, policy, sector reforms in Djibouti transport sector and capacity building. The expressway is along the southern export-import route through Dewele/Galile border point which is a shorter route to the sea by 120km compared to the existing northern route passing through Galafi border point. 3. The project will cost UA 181.60 million and is financed by an ADF Grant of UA 69.64 million to Ethiopia and ADF Grant of UA 3.80 million to Djibouti and a GoE contribution of UA 108.16 million. The road works will take 4.5 years whilst the various Djibouti consultancy services will take up to 3 years to complete. 4. The project beneficiaries will include businesses people within the agriculture, trade and import-export sectors, including 3000 truckers who drive the 900 km between Djibouti and Addis Ababa and youths who will receive over 95% of the job opportunities during the construction. Djibouti will benefit from increased trade, port revenues and jobs as well as bankable projects, improved capacity in management of the transport sector.

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