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Horn of Africa Initiative: Regional Economic Corridor Project (Addis-Djibouti Corridor)

Abstract*

The proposed project tackles a critical constraint to economic growth and development ambitions of Ethiopia by financing the last missing section of the Addis-Djibouti corridor i.e. the Miesso Dire Dawa road, while financing trade facilitation and logistics improvement initiatives needed to unlock the potential of critical industries and drivers of growth. The Addis-Djibouti corridor, which accounts for 95 percent of the country’s import-export trade...

* The project abstract is drawn from the PAD, SAR or PGD and may not accurately reflect the project's current nature

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Development Objective

The objective of the project is to improve regional connectivity and enhance logistics efficiency in Ethiopia along the Addis–Djibouti road corridor.

Key Details

Project Details

  • P174485

  • Active

  • Stephen Muzira , Bezawit Fantta, Getachew Debela

  • Federal Democratic Republic of Ethiopia

  • Eastern and Southern Africa

  • January 8, 2021

  • (as of board presentation)

    July 20, 2023

  • November 21, 2023

  • US$ 650.00 million

  • Ethiopian Roads Administration,Ministry of Transport and Logistics

  • Eastern and Southern Africa

  • 2024

  • US$ 730.00 million

  • N/A

  • High

  • October 31, 2029

  • Yes

  • BANK APPROVED

  • January 19, 2024

  • Notes

Finances

Financing Plan (US$ Millions)

No data available.
Financier Commitments
Borrower/Recipient 30.00
IDA Grant 730.00

Total Project Financing (US$ Millions)

Product Line IBRD/IDA
IBRD Commitment N/A
IDA Commitment 730.00
IBRD + IDA Commitment 730.00
Lending Instrument
Grant Amount N/A
Total Project Cost** 650.00

Summary Status of World Bank Financing (US$ Millions) as of April 30, 2025

Download:
No data available.
Financier Approval Date Closing Date Principal Disbursed Repayments Interest, Charges & Fees

Detailed Financial Activity as of April 30, 2025

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No data available.
Period Financier Transaction Type Amount (US$)
Jul 20, 2023 IDA-E2160 Loan Commitment 730,000,000.00
Mar 14, 2024 IDA-E2160 Loan Disb 4,508,500.00
Jun 26, 2024 IDA-E2160 Loan Disb 19,876,800.00

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name Review Date
Progress towards achievement of PDO Satisfactory 2024-12-19
Financial Management Satisfactory 2024-12-19
Monitoring and Evaluation Satisfactory 2024-12-19
Overall Implementation Progress (IP) Moderately Satisfactory 2024-12-19
Project Management Satisfactory 2024-12-19
Procurement Satisfactory 2024-12-19

COMPLETION RATINGS

No data available.

INDEPENDENT EVALUATION RATINGS

No data available.

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATORBASELINECURRENTTARGET
  • Reduction in travel time along the Addis-Djibouti Southern route corridorValue0.000.0030.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Percentage of the Addis-Djibouti Southern route corridor (142km) that is rated in good condition (IRI < 3)Value50.0050.00100.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Roads constructedValue0.000.00142.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Roads constructed - non-ruralValue0.000.000.00
    Date
    Comment
  • Roads rehablitatedValue0.000.0050.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Roads rehabilitated - ruralValue0.000.000.00
    Date
    Comment
  • Truck processing and clearance times at Dewele border post (hours)Value5.005.003.00
    DateOctober 24, 2023September 20, 2023June 14, 2027
    Comment

INTERMEDIATE RESULTS INDICATORS

INDICATORBASELINECURRENTTARGET
  • Percentage of the Addis-Djibouti southern corridor (142km) that has at least a 4-star IRAP ratingValue0.000.00100.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Number of trade facilitation facilities, storage and roadside markets constructed/rehabilitatedValue0.000.0020.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Percentage increase in roadside market provision and penetration in 5km buffer of Addis-Djibouti corridor sections that are intervened by the projectValue0.000.0030.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Percentage of the Miesso Dire Dawa corridor (142km) that offers digital connectivity and ITS applications via optical fiber cable installationsValue0.000.00100.00
    DateAugust 7, 2023September 20, 2023July 30, 2029
    Comment
  • OSBP at Dewele constructed with necessary facilities, and equipped with IT infrastructure for full functionalityValueNoNoYes
    DateJune 5, 2023September 20, 2023June 30, 2027
    Comment
  • Number of employees trained at beneficiary institutions under the trade facilitation and logistics enhancementValue0.000.00200.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Percentage of the Mieso-Dire Dawa section (142 km) that is rated as being climate-resilientValue0.000.0050.00
    DateAugust 7, 2023September 20, 2023March 20, 2029
    Comment
  • Freight truck terminals constructed and operational with Communication and Information Exchange System also delivered and functionalValueNoNoYes
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Percentage of business premises infrastructure developed under the project with reserved space for womenValue0.000.00100.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Share of the target population expressing satisfaction with the provided local infrastructure facilities (roads, wells, markets)Value0.000.0080.00
    DateMay 24, 2021September 20, 2023June 30, 2027
    Comment
  • Share of trade facilitation facilities, storage and roadside markets constructed/rehabilitated that are leased or used by women in local markets (percentage)Value0.000.0040.00
    DateSeptember 4, 2023September 20, 2023June 30, 2027
    Comment