The Government of Japan has decided to extend grant aid (the Project for Introduction of Clean Energy by Solar Electricity Generation System) totaling a maximum of 610 million JPY to the Republic of Djibouti. Notes to this effect were exchanged on December 2 (Wed) (local time: same day) in Djibouti City, the capital city of Djibouti, between Mr. Masaki Noke, Ambassador, Embassy of Japan in the Republic of Djibouti, and Mr. Mahmoud Ali Youssouf, Minister of Foreign Affairs and International Co-operation of the Republic of Djibouti.

The climate of Djibouti is dry and harsh due to high temperatures. There is also a lack of subterranean and water resources, forcing the country to rely on power plants using imported fossil fuels for its domestic power supply. For this reason, the development of renewable energy is an urgent matter. This grant aid is for the installation of solar panels on the grounds of the Djibouti Center for Research and Studies, the only governmental research institute in the country.

It is expected that this assistance will result in the creation of a center for development of solar energy generation and related technological training in Djibouti. It is also expected that the grant aid will lead to the building of the foundation necessary for working towards the future proliferation of solar power generation facilities.

This grant aid will contribute to the strengthening of bilateral relations between Japan and Djibouti, as Djibouti hosts the Japan Self-Defense Forces (JSDF) which currently is engaging in counter piracy efforts off the coast of Somalia.

The Republic of Djibouti covers a land area of 23,000 square kilometers, has a population of approximately 850 thousand people (World Bank, 2008), and a Gross National Income (GNI) per capita of 1,130 USD (World Bank, 2008).