European Union Plans to Fund Djibouti Desalination Plant

The European Union said it will fund the bulk of a 46 million-euro ($61 million) renewable-energy and water desalination plant in Djibouti.

The EU will provide 40.5 million euros for the facility, which will supply energy and water to about 200,000 people, a quarter of the population, according to a statement published on the EUbusiness website. Water availability in Djibouti’s capital, Djibouti City, where three-quarters of the country’s people live, is less than half the amount required, it said.

EU Development Commissioner Andris Piebalgs announced the funding with Djiboutian Prime Minister Dileita Mohamed Dileita, EUbusiness said.

Djibouti, a Horn of Africa nation about the size of Massachusetts, has a $1.1 billion economy that relies on services related to its strategic location on the Red Sea, one of the world’s busiest shipping lanes, according to the U.S. State Department. The country hosts about 2,500 U.S. military personnel at the Camp Lemonnier military base.

To contact the reporter on this story: Paul Richardson in Nairobi at pmrichardson@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net