Africa Development Djibouti Energy Infrastructure Sustainability

Djibouti Lake Assal geothermal project receives funding

Djibouti geothermal ambitions has received additional funds for its exploitation project in the Lake Assal region following the approval of approximately US$ 3.22M by the Board of Directors of the African Development Bank (AfDB) Group.

The pan-African bank has already granted two other loans for the implementation of this sustainable development project, US$ 6.83M and US$ 14.68M in 2013 and 2016 respectively. This brings the total AfDB’s investment in this project to US$ 24.73M.

The US$ 3.22M grant will allow the cleaning of well number 2 and make more tests for all Djibouti geothermal wells in order to collect reliable data, intended for a feasibility study, with an acceptable risk profile for commercial exploitation.

An overview of the Djibouti geothermal project

The project, located in the center of the East African country, will be undertaken in three phases on a public-private partnership (PPP) model.

The first phase will be carried out to confirm the characteristics of the geothermal resource while the second phase will be the development of the geothermal field and the construction of a power plant with a capacity of 20MW, and finally the extension of the capacity of this plant to 50MW.

The project, will ultimately increase the green energy production capacity of this country in the Horn of Africa, increase access to electricity through a more reliable and more efficient source, and consequently improve the quality of life of the Djiboutian population.

Furthermore, it will reduce the country’s oil imports and greenhouse gas emissions.

The Bank’s support

The pan-African institution’s support is aligned with the current Djibouti Country Strategy Document (CSP) and the East African Country Vision 2035. It is also in line with the New Pact for Energy in Africa, and responds to the strategic priorities of the Bank, the “High 5”, in particular, “Enlighten Africa and supply it with energy.”

Source: Construction Review Online

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