LE 500 million to be raised for Domestic Water Connections

CAIRO – 7 June 2017: LE 500 million ($27 million) is to be raised by the Ministry of Cooperation, the Union of Civil Associations and a number of NGOs to introduce domestic water connections in deprived areas, the head of the Egyptian Holding Company of Water Supply and Wastewater Mamdouh Rasslan stated Tuesday to Egypt Today.

The Ministry of Cooperation database of poor families which cannot afford to pay for water connections will be utilized in the initiative. An NGO had raised LE 30 million and the sum is expected to go up to LE 150 million by the end of this year.

Rasslan explained that those connections are the only remaining stages to complete in providing water supply for many areas in Egypt. He added that 248 water supply projects are being finalized at a budget of LE 6.1 billion.

Introducing domestic water connections through the sum raised will happen in phases. The first phase will consist of Assiut, Qena, and Sohag, as the beginning will be by governorates in Upper Egypt. However, Rasslan clarified that unlicensed houses are not eligible for the service.

In the near future, there will be no water deprived areas in the governorates of Qena, Sharqia, Dakahlia, and Sohag.

Rasslan declared that the budget allocated to the company in the upcoming financial year is LE 2.05 billion, of which LE 1.3 billion are designated for restoration and renovation of the current water and wastewater stations, while LE 750 million will be used for subsidizing water delivery prices.

He concluded that the company is considering the propositions of raising the prices upon all consumer categories. However, the raise will be minimal upon lower categories which did not experience any increases in prices for decades.

Rasslan revealed that the actual cost of service is LE 2 per cubic meter which is subsidized for consumers at prices ranging from LE 0.35 to LE 1.55.