Djibouti: Solar Rural Electrification

The Public-Private Infrastructure Advisory Facility (PPIAF) supported a pre-feasibility study to explore potential private sector participation options for the supply of electricity to rural villages in Djibouti using small-scale mini-grids solar schemes. The pre-feasibility analysis found that a build-operate-transfer concession model would not be financially viable due to the small scale. Instead, the study recommended operations and maintenance contracts for 12 mini-grids, with public or donor funding used to cover project capex (capital expenditure). Under this approach, the solar equipment would be either provided to or leased to the private sector.

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