Djibouti and Egypt have signed a solar power production agreement. According to the agreement, Egypt will build a solar power plant in Djibouti.
The proposed power plant will have the production capacity of 278.5 kilowatt. The project will be funded and built by the government of Egypt. Energy Ministers of the two countries signed the agreement online this week.
Egypt has long been interested in building a military base in Djibouti. It has been in dispute with Djibouti’s neighbor Ethiopia for over a decade over Grand Ethiopian Renaissance Dam (GERD) built by Ethiopia over river Nile.
Ethiopia, in the past, thwarted Egyptian attempts of building a military base in Djibouti. Though Egypt recently succeeded in expanding its military presence close to Ethiopia by sending its forces and arms shipments to Somalia, the Ethiopian neighbor.
Djibouti relies on electricity produced by indigenous thermal power plants and hydroelectricity imported from Ethiopia. Landlocked Ethiopia’s cargo handled by Djibouti port contributes significantly to Djibouti’s economy.
Egypt, Eritrea and Somalia last week formed a broad regional alliance against Ethiopia. Djibouti is not part of the alliance. Reportedly Egypt is interested in including Djibouti in this new regional alliance.
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