MSME signs a contract with Gastec for LE 20M

CAIRO – 8 March 2018: The Micro, Small & Medium Enterprise Development Agency (MSME) signed Thursday a contract worth LE 20 million with the Egyptian International Gas Technology Co. (Gastec) as a first stage of the initiative "Towards Natural Gas”.

The signing was attended by Minister of Petroleum Tarek el-Molla and Minister of Industry and Trade Tarek Kabil.

The initiative aims at converting 10,000 cars to work with natural gas and financing 50 outlets for motor oils’ trade with a total funding of LE 100 million within several stages by Natural Gas Vehicles Co. (Car Gas) and Egyptian International Gas Technology Co. (Gastec); which are affiliated to the Petroleum Ministry.

Minister of Industry and Trade Kabil said that the ministry seeks to implement strategic projects which reduce pollution and keep the environment clean, especially with Egypt’s orientation to depend on natural gas as a main source of Energy.

Kabil added that this project is planned to provide LE 500 million to Egypt annually (LE 45 million monthly).

The minister pointed out that the contract will be implemented over two phases by Gastec and a number of foreign companies, adding that the project comes within the framework of agreements signed by the parties in 2011 on the project to convert cars to work with dual fuel, and contributes to meet the growing demand for the transfer of cars to work with natural gas.

He added that the agreement aims at improving the added value of Egyptian gas and provides 40 percent of the unit cost of petroleum, referring that the cost of transferring cars to natural gas is around LE 8,000 – 13,000 per car.

Meanwhile, Head of banking development sector at CBE Mostafa Mounir said Wednesday that the total loans that banks issued within the Central Bank of Egypt’s (CBE) initiative to small- and medium-sized enterprises (SMEs) currently amounts to LE 67 billion.