The Daily News Egypt

EU announces $1.2bn Households Gas Connection­s Project

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

- 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
Minister of Petroleum Tarek El-Molla and Minister of Social Solidarity Ghada Waly with European Union officials

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