Horn of Africa Initiative: Djibouti Regional Economic Corridor Project

The development objective of the Regional Economic Corridor Project for Djibouti is to improve regional connectivity and enhance logistics efficiency in Djibouti along the Djibouti - Addis southern corridor. The project comprises of four components. The first component, improvement of infrastructure and introduction of intelligent transportation systems along the Djibouti-Addis southern corridor will improve the road corridor through output and performance-based road contract (OPBRC) which will include rehabilitation works for some sections, introduction of intelligent transport system, and the maintenance and operation of the corridor including axle load control and road safety. The second component, improvement of transit services along the Djibouti-Addis southern corridor will be designed and implemented in close coordination with the Ethiopian customs and will complement activities of other partners including the United Nations Conference on Trade and Development (UNCTAD), European Union (EU), Common Market for Eastern and Southern Africa (COMESA), and Trademark East Africa. The third component, institutional strengthening and capacity-building on road performance-based contract (PBCs) and project implementation support will finance the following activities: technical assistance in respect of the OPBRC; institutional strengthening and capacity-building on road PBCs and on public-private partnership (PPPs); maximizing the Djibouti-Addis southern corridor’s development impacts for local communities; and project management including performance monitoring and reporting. The fourth component, contingent emergency response component (CERC) will draw from the uncommitted resources under the project from other project components to cover emergency response.