Somalia - Nagad-Loyada/Lowyaddo-Borama Road Phase 1 Upgrading Project

The Nagad-Loyada/Lowyaddo-borama Road Phase 1 Upgrading Project provides a critical link between Djibouti and Somalia and also serves as a strategic link to the Port of Djibouti, port strategically located along one of the world’s busiest shipping routes. It aims to improve transport efficiency, effectiveness and connectivity thereby deepening regional integration and trade and contributing to alleviating fragility in the Horn of Africa region. The upgrading of this corridor is critical and when implemented will improve the regional corridor network linking Djibouti, Somalia and Ethiopia and unlock trade and tourism between the three countries and with countries such as Kenya. The proposed road project is an important trade corridor connecting Djibouti, Northern Somalia, and Ethiopia with a significant regional integration and economic development potential. The project road is links to the Berbera and Djibouti Corridors, prioritized under the Horn of Africa Initiative (HoA-I) thereby deepen regional integration and enhance trade. The project consists of six (06) main components, namely: (i) infrastructure investments, (ii) socio-economic infrastructure, (iii) advisory services, (iv) trade and transport facilitation, (v) institutional capacity building and (vi) compensation and resettlement. The project contributes to climate finance, with 11 million USD of the total approved amount dedicated to adaptation.