IBRD Loan: USD$ 75 million
Terms: Maturity = 20 years; Grace = 8 years
PROJECT DESCRIPTION: The objective of the project is to (i) contribute to Government of Egypt’s goal of reducing subsidies in the energy sector by switching consumption of LPG for natural gas through investment in new connections; and (ii) exploit the scale economies in transportation of natural gas relative to LPG in very densely populated areas, thereby reducing the cost of gas provision. The cost reduction makes it feasible to reduce overall gas subsidies.
