The European Union (EU) has allocated a €68 million grant to the Egypt Gas Connection Project to support key priorities in the country’s energy sector and boost its economic development, according to a statement from the EU delegation in Egypt.
Other partners include the French Development Agency (AFD) that will contribute a €70m loan, and the World Bank, which offered a $500m loan.
Among its immediate priorities, the Egyptian government has identified the need to increase the household use of natural gas.
Head of the European Union Delegation to Egypt, ambassador James Moran said: “The EU grant will support an estimated 450,000 underprivileged households by halving the cost of installing their gas connection.”
Reducing the financial burden will improve these households’ welfare and help them to switch to cleaner natural gas, which is better for the environment. New employment opportunities will also be created, he noted.
“As such it is an excellent example of how the EU is helping Egyptians toward a more prosperous, equitable and sustainable future,” Moran said.
European Commission High Representative/Vice-President Federica Mogherini signed this €68m agreement with the Egyptian minister of international cooperation, Sahar Nasr, last November in Cairo. Through this project, the EU will further support the implementation of institutional reforms necessary to ensure the gas sector’s sustainability.
Source: Daily News Egypt