Cairo – Mubasher: Egyptian Micro, Small & Medium Enterprise Development Agency (MSMEDA) has signed an EGP 20 million contract for the first phase of the “Towards Natural Gas” initiative with Egyptian International Gas Technology Co (Gastec).
Trade minister Tarek Kabil and petroleum minister Tarek El-Molla attended the deal signing, according to the trade ministry's statement.
The contract was signed by MSMEDA director Nevine Gamea and Gastec chairperson Abdel Fattah Farahat.
The initiative aims at converting 10,000 cars to operate by natural gas and financing 50 motor oil outlets with around EGP 100 million over phase through Gastec and Car Gas Co., the statement said.
This project is planned to save approximately EGP 500 million annually for the country, equivalent to EGP 45 million per month, Kabil remarked.
For his part, El-Molla highlighted that the deal also targets improving the Egyptian gas value and providing 40% of petroleum materials’ unit cost, noting that turning vehicles to be operated by gas costs around EGP 8,000 to EGP 13,000 per car.
Furthermore, MSMEDA director Nevine Gamea said that the agency will grant the ultimate beneficiary an EGP 5,000 loan for five years.
The project has been financed with EGP 127 million now to convert 25,000 cars, she said, adding that it will create more than 25,000 jobs.
