| Project Detail |
Approval Date 29 Mar 2023
Planned Completion Date 31 Dec 2025
Last Disbursement Planned Date 31 Dec 2025
Sovereign / Non-Sovereign Sovereign
Sector Transport
DAC Sector Code 21023
Commitment U.A 31,750,000
Status Approved
Project General Description
The Nagad-Loyada/Lowyaddo-borama Road Phase 1 Upgrading Project provides a critical link between Djibouti and Somalia and also serves as a strategic link to the Port of Djibouti, port strategically located along one of the world’s busiest shipping routes. It aims to improve transport efficiency, effectiveness and connectivity thereby deepening regional integration and trade and contributing to alleviating fragility in the Horn of Africa region. The upgrading of this corridor is critical and when implemented will improve the regional corridor network linking Djibouti, Somalia and Ethiopia and unlock trade and tourism between the three countries and with countries such as Kenya. The proposed road project is an important trade corridor connecting Djibouti, Northern Somalia, and Ethiopia with a significant regional integration and economic development potential. The project road is links to the Berbera and Djibouti Corridors, prioritized under the Horn of Africa Initiative (HoA-I) thereby deepen regional integration and enhance trade. The project consists of six (06) main components, namely: (i) infrastructure investments, (ii) socio-economic infrastructure, (iii) advisory services, (iv) trade and transport facilitation, (v) institutional capacity building and (vi) compensation and resettlement.
Project Objectives
The development objective of the project is to improve transport connectivity between Djibouti and Somalia, thereby deepening regional integration and trade, and contributing to alleviating fragility in the Horn of Africa. The specific objective of the project is to reduce travel time, reduce travel cost and improve road traffic safety, and improve the trading environment along the project road.
Beneficiaries
In addition to the people living within the project zone of influence in Somalia and Djibouti, tourists and other travellers will benefit from the proposed project as well. Other beneficiaries include large companies (agroprocessing, salt mines, and manufacturers), medium and small-scale entrepreneurs, commercial and peasant farmers, fishers, livestock farmers and people who use the transport corridor. Beneficiaries will directly benefit from reduced travel costs and time thereby improving transportation of goods, passenger travel, The residents will benefit from the extensive trade opportunities while other economic benefits will accrue through creation of employment opportunities (jobs direct and indirect), Additionally, the trained youths, will benefit from acquiring technical skills which will empower them to actively participate in economic activities. The total number of beneficiaries is estimated to be around 870,000 people, of which about 50% women. |
