EU an­nounces $1.2bn House­holds Gas Con­nec­tions Project

Project costs $1.2bn, €68m of which is Euro­pean grant

The Daily News Egypt - - FRONT PAGE - By Ha­gar Om­ran

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

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