Egypt signs €71 mln grants with French agency on energy

By Amwal Al Ghad English On Oct 8, 2019

(R-L) Egypt’s Minister of Investment Sahar Nasr, Minister of Electricity Mohamed Shaker, France’s Ambassador to Cairo Stéphane Romatet, and AFD’s deputy director Mathieu Vasseur attend the signing ceremony of new loans in Cairo, Egypt October 8, 2019. (Photo Credit: Ministry of Investment and International Cooperation)

Egypt on Tuesday has signed two grants totalling €71 million ($78 million) with the French Development Agency (AFD) to fund national energy projects.

The new grants include €3 million signed by Egyptian Minister of Electricity Mohamed Shaker to finance electricity development programme, said a statement by the Ministry of Investment and International Cooperation.

A second grant deal for €68 – signed by Minister of Investment Sahar Nasr – was for Egypt’s household natural gas connection project, the statement read.

This project blends loans from the AFD, World Bank, and Kuwait Fund for Arab Economic Development, with grants from the NIF, to connect 2.4 million households in 11 predominantly rural governorates over a four-year period.

AFD’s latest grant will be used to fund discounts on initial connection charges for poor and disadvantaged families, cutting the cost to them by about half.

A strong and resilient gas sector is vital to Egypt’s energy security, as well as to its economy. Egyptian government is engaged in sector reforms to progressively remove price distortions and make the sector more competitive, transparent, and sustainable.