Djibouti Regional Economic Corridor

Through the African Adaptation Acceleration Program (AAAP), the GCA is embedding climate resilience into the 90 km Djibouti Regional Economic Corridor (DREC), which connects Djibouti City to the Ethiopian border via National Roads RN1, RN5, and RN19. The corridor is the backbone of Djibouti’s economy and food security: 90 percent of the country’s food supply is imported, with nearly all fruits and vegetables coming from Ethiopia. Building on a $180 million World Bank investment to upgrade two key sections of this trade route, GCA is ensuring that adaptation is fully integrated into the project’s design, delivery, and long-term sustainability.
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The Adaptation Need

The DREC is increasingly exposed to climate hazards that threaten both regional connectivity and Djibouti’s food security. Without action, more than 75 percent of the corridor will face extreme heat exposure by 2050 under SSP5 scenarios, undermining road durability. Flood-related Expected Annual Losses, currently $1.4 million, are projected to rise to $2.4–3.3 million by 2050, while landslide-related losses, estimated at $1.5 million today—70 percent of which are indirect—could reach $5.9–6.3 million. These escalating risks highlight the urgency of embedding resilience in Djibouti’s most strategic infrastructure. 

 

GCA’s Added Value

GCA is integrating adaptation into the corridor using the Output- and Performance-Based Road Contracts (OPBRC) model as a replicable framework for future procurements and sector-wide reform. This approach supports Djibouti’s national adaptation priorities, including its NAPA, NDCs, and Vision 2035. Technical assistance focuses on embedding resilience across procurement policies, contractor training, and performance-based incentives. Adaptation solutions include climate-resilient culverts, bridges, and drainage systems, road stabilization measures to withstand extreme heat, and nature-based solutions such as riparian vegetation restoration to mitigate flood risk and preserve natural water systems. 

Total Investment Value Influenced
$180.00M
Beneficiaries
268,000
IFI Implementation period
2024 - 2028
Program
Infrastructure and NbS
Partners
The World Bank
Status
Completed
Countries
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Djibouti
SDG contribution
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09 - Industry, Innovation, Technology and Infrastructure
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13 - Climate action

Project goals

Mainstreaming Adaptation and Resilience

By climate-proofing the DREC, GCA is helping Djibouti secure food imports, lower logistics costs, and sustain access to markets, healthcare, and education. A gender analysis has revealed significant disparities in access to transport and public services in the Arta and Ali-Sabieh regions, guiding inclusive infrastructure design. To institutionalize resilience, GCA has developed comprehensive OPBRC guidelines, supported by a set of indicators and KPIs spanning planning, design, construction, and maintenance. These guidelines are scalable across the sector, embedding climate resilience into procurement and contractor practices. By prioritizing investments where traffic flows, trade volumes, food security, and social accessibility converge, GCA is positioning Djibouti’s transport network as a model for climate-smart regional connectivity. 

Expected Outcomes 

  • 42km of road rehabilitated with climate resilient standards 
  • 30% decrease in annual fatalities from road accidents 
  • 300 jobs created, including 60 for women 
  • Reduction in travel time along the Djibouti section of the Djibouti-Addis southern corridor 

Timeline

Project status

Technical Assistance Preparation

GCA Support Implementation

September, 2024

GCA Support Completion

Monitoring

Finance

Project Investment Value

Total Investment Value

$180.00M

IFI Investment Value

$160.00M

Other Investment Value

$20.00M

IFI partners

Contacts

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