Extension of the natural gas network: Connection of 1.5 million households in Egypt

The project will contribute to financing infrastructure to connect 2.4 million households to the natural gas network in at least 11 governorates in Egypt, over a 4-year period. The complete mechanism will also comprise:Budget support for poor households for the payment of the cost of connection to the gas network.Technical assistance to EGAS for the institutional reform of the gas sector, including the creation of a regulator and the implementation of business management software.The project contracting authority, EGAS, is responsible for planning, supervising and financing the project and is the owner of the assets being financed. The local distribution companies, which are delegated contracting authorities, are responsible for procurement and the implementation of works. The total project cost stands at EUR 1,710m. It is financed by loans for USD 500m from the World Bank, EUR 70m from AFD and a EUR 68m grant delegated to AFD by the European Union, which is mainly earmarked for the project’s institutional and social components.