Under MOIC’s efforts to follow up and implement the project of connecting natural gas to households, and the government’s attempt to alleviate citizens’ burdens of buying butagas cylinders, the government started to connect natural gas to 11 governorates across Egypt, namely in Giza, Alexandria, Ismailia, Qalioubeya, Menoufia, Daqahleya, Qena, Gharbeya, Aswan, Souhag and Marsa Mtrouh, thereby serving around 1.5 million housing units. The project is implemented by the Egyptian Natural Gas Holding Company (EGAS) and is funded by several development partners, namely IBRD, AFD and the EU.
A loan agreement worth USD 500 million was signed between MOIC and WB, represented by WB Vice President for MENA Ms. Inger Andersen on 11 September 2014 for financing the project. Another loan agreement worth EUR 70 million was signed with AFD on the side-lines of President el-Sisi’s visit to Paris on 26-27 November 2014.
As for the EU’s contribution, MOIC signed a grant agreement worth EUR 68 million with the High Representative of the Union for Foreign Affairs & Security Policy/Vice-President of the European Commission Ms. Federica Mogherini in presence of the Minister of Petroleum Mr. Tarek El-Mola and the EU Ambassador to Cairo Mr. James Moran on 2 November 2015.
The purpose of the project is to assist the government to increase natural gas connections from the national grid to housing units effectively and at lower costs. This project’s importance emanates from its large geographical scope as it is implemented in 11 governorates which will help limit the use of butagas cylinders and connect the national grid to around 1.5 housing units through the following activities: expanding the natural gas network, connecting gas to households through the gas distribution network, gas transmission connections, pressure-reduction stations and customer service centres to ensure high quality connection services during and after implementation of the project, in addition to subsidization of connection fees in poor areas.