Egypt Closes $500 Million World Bank Loan For Gasification

The Egyptian government has signed off on a $500 million loan from the World Bank to fund an expansion of its household gas supply. The debt will mature over a 30-year tenor and aims to connect to 1.5 million new households, according to the lender.

“The Egypt Household Natural Gas Connection Project will support the Egyptian government’s programme to replace household consumption of LPG, which is mostly imported, with grid-connected natural gas. About 52% of the neighbourhoods targeted by the project have poverty rates higher than Egypt’s national average,” the World Bank said in a statement.

More than 75% of Egyptian households buy LPG cylinders through an inefficient distribution network. By the end of the project, the number of households connected to the gas grid will increase by more than 40% from 5.8 million to 8.2 million households.

Source : interfaxenergy