EU announces $1.2bn Households Gas Connections Project
Project costs $1.2bn, €68m of which is European grant
Miguel Arias Cañete, European Union (EU) commissioner for energy and climate action, said the EU will continue to support the Egyptian government to reform its energy sector and establish a sustainable system,adding that the EU granted Egypt €68m for the Households Gas Connections Project.
The EU delegation to Egypt organised a conference on Sunday evening to announce a new energy project, the Households Gas Connections Project.The project’s total funding is estimated at more than $1.2bn, including a grant of about €68m from the EU, €70m of the French Development Agency (AFD), $300m from the World Bank (WB), $326m from other financing sources such as fees from consumers,and $473m from the Egyptian Natural Gas Holding Company (EGAS).
Cañete added at the delegation conference that achieving the development strategy goals will not take place without gas connections and eliminating poverty.
“Egypt has a lot of progress in the field of energy, it is a main partner, we support the stability and prosperity of the country, we always support Egyptians in facing the security issues,” Cañete said.
Stephanie Lanfranchi, country director for the AFD, said,“I see that the Egyptian government has taken many ambitious decisions to modernise the gas sector and enhance its availability for many people.”
Lanfranchi added that the governmental efforts led to many accomplishments in terms of eliminating poverty and enhancing life quality, noting that the AFD is collaborating with the WB, the EU, and local governments to help in implementing the project.
The EU offered Egypt a grant to help people who cannot afford gas to be connected to the gas network, said Lanfranchi.
G had aW a ly, minister of social solidarity, e noted that the new project will offer poor women a safe,clean source of energy, adding that any money they save will be spent on their children.
Waly mentioned that connecting people to gas is considered a labourintensive project, which plays an important role in economic development.
Tarek El-Molla, minister of petroleum and mineral resources, said that Egypt recognised gas discoveries in 1967, but gas was a side product, seen as not as valuable as crude oil, adding, “in the 1980s, Egypt started the projects of gas connection. Last year, we connected 700,000 house to the network. Now there are 8.6m houses connected to the gas network.”
Minister of Petroleum Tarek El-Molla and Minister of Social Solidarity Ghada Waly with European Union officials