Djibouti+Infrastructure+Projects

=In The Next Five Years It Is Likely That Chinese Investments In Corresponding PNGSM Djibouti Infrastructure Projects, Such As The China Civil Engineering Construction Corporation (CCECC) Addis Abba - Djibouti Railway, Will Continue=

Executive Summary:
Chinese investment in corresponding PNGSM infrastructure projects will likely continue for the next five years. In the past five years projects such as the Addis Abba - Djibouti Railway, a December 2011 agreement for a 756 kilometer line built by the CCECC is funded by a USD 3 billion investment by the China-EXIM Bank in 2013 to cut the time of freight shipments in half as well as a November 2012 China-EXIM Bank USD 64 million loan for the construction of an ore terminal to facilitate export of salt from Lake Assal in Ghoubet are worthwhile for Chinese investors because they are able to receive the PNGSM much faster and in larger quantities. Djibouti plans on creating and updating its ports, such as Doraleh and Tadjourah,are opportunities Chinese investors can get involved in to increase PNGSM transportation from Djibouti and other countries. Other infrastructure projects not related to PNGSM are also conducted by Chinese investors to help further ties with the Djibouti government and companies.

===Discussion:=== China realizes it cannot get the resources it needs until the Eastern Africa countries have an adequate infrastructure available, including those countries who do not even offer China the resources it is looking for. While Djibouti has no current resources China is actively searching for, its strategic location near the Red Sea and Gulf of Aden make it a perfect location for importing and exporting natural resources.

PNGSM corresponding infrastructure projects, such as the CCECC Addis Abba-Djibouti railway, occur to build up Djibouti's infrastructure and keep strong bilateral ties with the Djiboutian government while at the same time making the export of other Eastern African countries' natural resources much faster and streamlined. The railway will be 439 km long starting from the Port of Djibouti, with construction starting by the CCECC in March 2012 and began again on 7 July 2013 when China EXIM Bank secured USD 3 billion in funding to make sure the project completed in time. China Railway Engineering Corporation (CREC) is undertaking the construction of the 317km segment from Meiso to Sebeto.

Djibouti also plans to create and improve six of its ports to handle the increase of commodity exports. On 20 November 2012 China EXIM Bank and the Djibouti government signed a loan agreement of USD 64 million to construct an ore terminal to help facilitate salt exports from Lake Assal, which will allow Djibouti to export 5,000 tons of salt annually. Construction of these ports and terminals near them is how China uses Djibouti's strategic location to maintain strong ties while still receiving the resources it needs.

Projects like a USD 2.6 liquified natural gas terminal, including a liquification plant and pipeline, and a USD 600 million oil refinery at the end of a a planned South Sudan pipeline are also planned, and while China has yet to make any public interest known, these projects are exactly the type of corresponding PNGSM infrastructure projects the Chinese seek out in Djibouti.

Miscellaneous Infrastructure Projects
 * **Date** || **Price (USD)** || **Location** || **Key Chinese Companies Involved** || **Description** || **Corresponds To** ||
 * May 2009 || Unknown || Unknown || Chinese Government || Chinese donation of construction equipment to Djiboutian Ministry of Transport || Misc. ||
 * 2013 || 70 million || Ghubaith port || Unknown || Chinese government to fund the development of Ghubaith port || Misc. ||

**Analytic Confidence: **
Analytic confidence for this assessment is moderate. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone but collaborated with a team, and did not use structured analytic methods. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst**: David Bott