November 21, 2017

EGYPT INKS $500 MILLION GAS LOAN WITH WORLD BANK

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World Bank has granted Egypt a $500 million loan to assist help fund a Petroleum Ministry plan to connect 850,000 Egyptians with natural gas.

According to the Minister of International Cooperation Najla Ahwani, the loan is expected to connect basically the rural Upper Egypt to a natural gas grid.

For a decade now Egypt has been experiencing its worst energy crisis due to declining gas production, rising consumption and generous power subsidies.

With the loan the most populous African country will be able to plan effectively to address the energy crisis which has made a number of foreign energy firms to be wary about investing in the country.
This boycott by investors in the country was occasioned by the government move to to divert most gas earmarked for export to the power-hungry domestic market.

Egypt will pay back the World Bank loan over 30 years, with a five-year grace period.

The Egyptian government also signed an agreement with the European Union for a 67.6 million euro grant to address unemployment rate which is 13.4 percent, up from 9 percent in 2010. The loan will target to fund short-term jobs for unskilled workers who are unemployed.

http://www.zawya.com/story/Egypt_signs_USD500m_World_Bank_gas_loa-TR20140911nL5N0RC2E4X2/#utm_source=zawya&utm_medium=web&utm_content=latest-news&utm_campaign=free-homepage

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