The Challenge
Djibouti is one of the smallest countries in Africa, but it occupies a prime location at the southern entrance to the Red Sea, which connects Africa and the Middle East. Some of the world’s busiest shipping routes go through its sophisticated port. Despite these advantages, Djibouti faces significant challenges, including high unemployment, pollution, and high electricity costs. The Government of Djibouti sought a partner to boost both energy access and local employment.
Our Solution & Impact
The U.S. Embassy in Djibouti helped Colorado’s CR Energy Concepts (CREC) close a deal with the Government of Djibouti to construct a $190 million Renewable Energy Park – the first infrastructure project in Djibouti to be built by the U.S. private sector. The project will support $115 million in U.S. exports, and 90 percent of the equipment in the plant will be American made. The park will add capacity to the Djibouti power grid and create over 100 local jobs. The U.S. Embassy helped CREC close this deal by facilitating introductions to key investors, supporting CREC in negotiating nearly $150 million in debt financing.
“The U.S. Embassy in Djibouti worked closely with CREC from the beginning to locate U.S. financing for the project, facilitate negotiations with the Djiboutian government, and navigate the local commercial landscape.”
Joe Yavorski CREC President and Managing Partner