US embassy cable - 04DJIBOUTI394

C O N F I D E N T I A L DJIBOUTI 000394 
 
SIPDIS 
 
STATE FOR AF AND AF/E 
 
E.O. 12958: DECL: 03/15/2014 
TAGS: PREL, PHUM, EAID, ECON, CH, DJ 
SUBJECT: DJIBOUTI AND REQUEST FOR INFO ON CHINESE 
ASSISTANCE TO AFRICA 
 
REF: STATE 05006 
 
Classified By: AMBASSADOR MARGUERITA D. RAGSDALE. 
REASONS 1.4 (B) AND (D). 
 
 1. (C) Chinese development activity in Djibouti has been 
robust, with major projects as well as feasibility studies, 
minor projects and assistance for renovation of existing 
facilities.  Major projects include a sports stadium built in 
between 1991 and 1993 at a cost of USD 11 million (loan) and 
another stadium project to begin later this year. 
 
2. (C) Based on information post has been able to compile, 
following is list of major Chinese assistance programs in 
Djibouti: 
 
-- 1983/85   Construction of the Palais du Peuple (People's 
Palace) USD 10 million (loan). 
 
-- 1991/93   Construction of Djibouti City Stadium, USD 11 
million (loan) 
 
-- 1994      Food Aid, USD 0.5 million (grant) 
 
-- 1996/98   Construction of 55 homes, USD 2.6 million (loan) 
 
-- 1997      Construction of wing of Peltier Public Hospital, 
USD 0.45 million (loan) 
 
-- 1981/2000 Provision of Equipment (military, sports, 
computers, etc.), USD 5 million (grant) 
 
-- 2001/2    Construction of Ministry of Foreign Affairs, USD 
2.41 million (grant) 
 
-- 2003      Provision of sanitation trucks and equipment, 
USD 0.678 million (grant) 
 
-- c2004     Construction of Omnisport Center (Dikhil), USD 
0.91 million (grant) 
 
-- c2004     Art Center (Girls' orphanage), USD 0.622 million 
(grant) 
 
3. (C) Cooperation between China and Djibouti has been widely 
covered in "La Nation" over the ensuing years, and has been 
described as "exemplary."  In Ambassador's meeting earlier 
this week with Mohamoud Youssef Ali, Minister of Cooperation 
in the Ministry of Foreign Affairs, Ali touted Chinese 
participation in the development of Djibouti. He has 
commented previously that he believes that a cooperation 
mechanism between major donors on economic assistance to 
Djibouti would be extremely beneficial. 
 
4. (C) Comment:  Post notes that China is providing on 
occasion a kind of economic assistance, through grants, that 
Djibouti's government favors over loans.  According to Ali, 
Djibouti has "limited capacity" to service loans.  In his 
meeting with Ambassador, he cited Gulf states that in the 
past gave bilateral assistance to Djibouti but who now prefer 
multilateral assistance via loans.  He admits that those 
states have been deeply affected economically by the first 
Gulf war in 1990 and want better control over how aid money 
is ultimately used. End comment. 
 
RAGSDALE